Positive UK data holds cable near 3-year highs.

Sterling has this morning been buoyed by strong retail sales data. The ONS reported that sales jumped 9.2% from a forecast 4.5%, citing a near 70% increase in clothes sales from the previous month. This positive data has led the GBPUSD rate to trade at near 3-year highs.

After poor non-farm jobs figured on the 1st Friday of the month, many US employers are aggressively hiring. Republican governors in 21 states will be withdrawing from the central government subsidised unemployment benefit programme that pays individuals up to $15per hour. The move looks likely to force unemployed workers back into the jobs market. Economists polled by Reuters have forecast 450,000 applications for the latest week. Jobless claims remain well above the 200,000 to 250,000 range that is viewed as consistent with healthy labour market conditions.

On the continent, both French and German PMI readings came in above expectation. Being the powerhouses of the single currency, much of the euro’s value is derived from their economic performance. GBPEUR is currently trading at 1.1610. Sothern European states will likely see an boost should they be added to the UK’s green-list in the coming weeks.

A ceasefire has been reached in the Israeli-Palestinian conflict after 10 days of fighting and calls from numerous world leaders to end the violence.

Economic Calendar

Expected Previous
07:00 GBP Core Retail Sales (M/M)(APR) 4.5% 5.1%
08:15 EUR French Flash Manufacturing PMI (MAY) 58.6 58.9
08:30 EUR German Flash Manufacturing PMI (MAY) 66.0 66.2
09:00 EUR Flash Manufacturing PMI (MAY) 62.5 62.9
09:30 GBP Flash Manufacturing PMI (MAY) 60.7 60.9
12:00 ECB President Lagarde Speaks
14:45 USD Flash Manufacturing PMI (MAY) 60.0 60.5
15:00 EUR Consumer Confidence (MAY) -7 -8
15:00 USD Existing Home Sales (M/M)(APR) 6.09M 6.01M
18:30 USD FOMC Member Daly Speaks

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.