Sterling continued its rally yesterday, pushing GBP/USD up to the highs of the month, whilst GBP/EUR broke a key psychological level. The Pound is supported by diminishing Brexit risks, after a poll released by the ORB showed the “Leave” campaign had a resounding lead.
German data was yesterday morning’s main focus as the Ifo Business Climate hit the wires. The data resisted the poor Euro trend of late and posted an improved figure of 107.7, its best reading this year. The spotlight then turned to the US as the Goods Trade balance reading was released. The Goods Trade Balance looks at the difference in value between imported and exported goods. The gauge posted an improved figure of -57.5B.
Today is the busiest day of the week as the second reading of the UK’s Q1 GDP is released. UK GDP is forecast to remain at 0.4%. With the Brexit concerns still continuing to weigh on the UK economy, we could see this figure fall lower than expected. In the afternoon, the US will release their monthly Durable Goods Orders figure. This is expected to increase to 0.3%, and therefore return into positive territory.