US equities closed in the positive yesterday, with comments from the minutes relased last wednsday helping the positive mood. The Fed’s plans to unwind the balance sheet were well recieved by investors.
The UK economic growth was less than expected for the 1st quarter of this year, and we saw the GBP was weaker against the USD yesterday and much of that weakness still persists across the rest of the major counterparts as well.
GBPUSD is entering its second day of losses and is currently trading at 1.2889 after opening the week a 100 pips higher. Moves lower so far today have remained supported at 1.2866 – session lows up to the time of writing.
The decision to extend production cuts by another 9 months was snubbed by traders as they had hoped for deeper production cuts or at least an extention by 12 months. Oil prices saw some hefty declines after the outcome of OPEC’s last meeting. Naturally as can be expected the move in the price of oil also left its toll on support for commodity currencies.
G7 leaders meet today in Sicily, and from the economic docket the highlight today’s goes to the US annualized GDP reading, and US Durable goods orders.
Have a great weekend!
