USD pauses after jobless claims rise

The US Dollar paused its rampage after 375,000 Americans filed for unemployment welfare payments in the previous week. That was a surprising upwards tick on the previous data and well above forecasts. So it gave USD traders a chance to pause for thought and the USD slipped a little in value. The Pound starts Friday buying USD 1.3760 and a Euro will get you USD 1.1825.

UK GDP grows for 4th straight month in May…but slows

For its part, Sterling also paused this morning after economic growth data slowed in May. 0.8% growth on the month was still positive and this is the 4th straight month of growth but it was down from 2.0% in April. Worse still was the manufacturing production data which showed a 0.1% decline in May. That was slightly counterbalanced by a 0.8% rise in industrial production. Sterling traders will now turn their eyes to the NIESR GDP tracker which will be published at 14:00 GMT and the trade data due for the UK at 17:00 GMT. Right now, a Pound will but EUR 1.1640, having been down to 1.16 flat in the last 24 hours.

On the other side of the channel, the European Central Bank will publish meeting minutes today and we’ll have a couple of speeches from ECB members. Doubt that will have much impact on the value of the euro unless there was talk of early tightening of monetary policy in the last meeting or, indeed, thoughts about delaying such a move.

AUD and NZD weakened by nervous investors

The most interesting feature of the last few days has been the decline in the Aussie and Kiwi Dollars in particular. Risk-averse investors tend to shy away from these two and slowing data in China is causing nervousness for China’s suppliers in the Asian and Australasian markets. Also, the spread of the Delta variant of Covid in Australia and elsewhere is causing concern over the potential for a reversal of fragile economic growth. All of the above has put pressure on the AUD and NZD. Hence, the Pound is up above AUD 1.85 and NZD 1.98 this morning.

But no one cares about any of this do they. Italian and English eyes are on the Euro 2020 final at the weekend. I have to admit I am not a big football fan, so can’t speak about it with any level of authority. I just hope the bloke who wears the different coloured shirt to the others. You know, the one who stands at the back of them in front of that cage-type thing. Well, I just hope he manages to catch the ball when it is booted at him by those other blokes. That’d be good, I think. Come on England.

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