The Euro and Sterling were still unsettled by political concerns.

Growth fears continued to dominate on Wednesday with global bond yields close to record lows.

The US dollar gained an element of defensive support despite on-going concerns over potential damage to the US economy.

The Euro and Sterling were still unsettled by political concerns with a jump in German unemployment also unsettling the single currency. Equity markets remained on the defensive as earnings concerns persisted.

The Bank of Canada held interest rates at 1.75% with the relatively optimistic statement enabling the Canadian dollar to recover from initial losses.

Stronger than expected GDP data supported the Swedish krona. Oil prices were protected by supply concerns and an API inventory draw for the week

Precious metals were unable to gain significant support.

There were no domestic economic releases during the day with political developments and global market trends continuing to dominate markets. There were no major developments in the Conservative Party leadership race while divisions within the Labour Party intensified. Overall, Brexit concerns continued to hamper Sterling, although any formal Labour endorsement of a second referendum could boost confidence on increased speculation that Brexit would be not go ahead.

Markets remained wary over potential month-end selling pressure on Sterling, especially given fragile underlying conditions for risk appetite. GBP/EUR registered a fractional increase, but GBP/USD dipped to near 4-month lows just above the 1.2600 level.

Latest data recorded a sharp decline in car production for April, reinforcing concerns over the economic impact of Brexit uncertainty and global risk appetite remained fragile. Sterling was unable to make significant headway on Thursday as markets continued to monitor political developments with the GBP/EUR around 1.1345.

Economic Calendar

Expected Previous
07:30 CHF Retail Sales (Y/Y)(APR) - -0.70%
08:30 BOE MPC Member David Ramsden Speech - -
13:30 USD GDP Price Index (Q/Q) 1.70% 0.60%
13:30 USD Goods Trade Balance(APR) - -71.33B
13:30 CAD Current Account (Q/Q) -13.5B -15.5B
13:30 USD Continuing Jobless Claims 1.670K 1.676K
13:30 USD Initial Jobless Claims 216K 211K
13:30 USD Wholesale Inventories(MAR 15) 0.20% -0.10%
15:00 USD Pending Home Sales (M/M)(APR) 1.10% 3.80%
15:00 USD Pending Home Sales (Y/Y)(APR) - 105.8%
16:00 USD Crude Oil Inventories - 4.740M
17:00 FOMC Member Richard Harris Clarida Speech - -
19:15 Gov Council Member Wilkins 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.