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The first round of the snap parliamentary election took place in France on Sunday
Over the weekend, the initial round of the French snap parliamentary elections took place and Marine Le-Pen’s far-right party won with 33.2% of the vote. We’ll find out who takes the outright majority on July 7th.
This morning, the euro gained 0.25% against sterling and 0.45% against the US dollar, as investors’ sentiment improved.
The Australian dollar continued its upward trend on Friday, gaining over 0.5% on the US dollar.
UK GDP rose by 0.7% in the first three months of 2024, confirming that the UK was the fastest-growing economy in the G7 during the first quarter of this year.
According to the Resolution Foundation think tank, real household disposable income per person increased by 2.4% due to faster wage growth compared to rising prices.
US PCE inflation remained unchanged in May, from 0.3% growth in April, and matching forecasts.
President Biden plans to attend the second debate in the US presidential rally however rumour has it the Democrats are considering replacements after his disappointing appearance on Thursday evening.
Here’s what to look out for this week…
The start of the week brings Germany’s inflation and a whirlwind of data for the US, including Manufacturing and Services PMIs, JOLTs job openings, FOMC minutes and a speech from Federal Reserve chair, Jerome Powell.
Thursday 4th July is the UK general election and, as volatility is expected, we have extended our opening hours to ensure we’re available should you wish to make a transfer or lock in a rate.
Closing the week, Friday brings US non-farm payrolls and unemployment rate, which is expected to remain unchanged at 4%.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your account manager on 020 7898 0541 to get started.
GBP: Pound looks to general election for a boost
The pound continued its losing streak against the US dollar on Friday, falling to a six-week low. Sterling investors look to Thursday’s UK general election for direction.
GBP/USD past year
EUR: Inflation expected to fall, albeit slowly
Tomorrow morning, the latest euro area inflation for June will be released. Markets forecast the rate to fall to 2.5% from May’s 2.6%, moving slowly closer to the European Central Bank’s 2.0% target.
GBP/EUR past year
USD: Consumer sentiment boosts US stocks
American stocks extended their gains on Friday, with the S&P 500 soaring to an all-time high of 5500. The Nasdaq 100 reached a record level of 19,980 and the Dow Jones added over 220 points. This movement was fuelled by the Michigan consumer sentiment which was revised higher to 68.2 in June.
USD/EUR past year
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business account manager on 020 3918 7255 or your Private Client account manager on 020 7898 0541.
