The Euro fell against the Pound following data released by the German statistics office on Wednesday, that showed the unemployment rate in Germany remained steady at 6.3% in April. Meanwhile, unemployment change rose by 34k in April, 11k above forecast. The poor data signals that the ECB may be forced to cut rates in June to stimulate economic growth within one of Europe’s largest players, which has added extra pressure on the already stressed currency.
Sterling remains resilient despite recent setbacks against the Dollar. With strong posting for inflationary data and a rebound in retail sales last month, the chance of a rate cut in August by the Bank Of England, is dropping to 40% providing strong support.
Key movers
USD further extends its gains against GBP and the EURO, the pairs bear the brunt of the renewed US Dollar demand, spurred by a US court’s ruling to block Trump’s reciprocal tariffs and a more cautious tone in the Fed Minutes. However, a forecasted fall in US GDP by 0.3% later today may dash hopes of a continued and sustained comeback by the currency.
Source: EUbusiness
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