Sterling fell on market sentiment and worse than expected UK economic data as The Gfk consumer sentiment hit its worst level since 2008. The UK’s Retail Sales were weaker than foreseen at 0.9% year on year and -1.4% month on month. The S&P Global PMIs for April beat expectations but Services and Composite trailed the previous month’s figures. Elsewhere, the Bank of England Governor Andrew Bailey said inflation would go higher in the UK courtesy of energy prices. Furthermore, he added that the BoE would only make QT active sales in stable markets and cease if conditions change.
No Key Data
The Euro struggled dramatically against the Dollar and Sterling on Friday following significant USD strength and comments made by ECB President Christine Lagarde. She said the European Commission has found that 34 products used in the EU are exposed to supply chain disruptions given their low potential for diversification and substitution inside the Union. This vulnerability has become more evident because of the Russia-Ukraine war. The S&P Global Composite PMI came in at 55.8, which beat expectations of 53.9 and the previous reading of 54.9. In France, Macron’s victory in the Presidential election was confirmed yesterday evening.
No Key Data
The Dollar saw a large movement on Friday as Jerome Powell stated that the Federal Reserve will look to increase the interest rate for the US in May- “I would say 50 basis points will be on the table for the May meeting,” Powell said. Following those comments, expectations for a 50 basis point move in May rose to 97.6%. U.S. Treasury yields also jumped on the back of Powell’s comments. The yield on the benchmark 10-year Treasury note, which started the year near 1.5%, last stood at 2.9336%.
No Key Data