GBP BREAKS TO 2‐MTH HIGH ON STRONG GDP
– USD weakens; markets pushes out expectations for QE tapering.
– CAD is strong on broad USD weakness; Carney’s testimony provides little of new; replacement announcement should be imminent.
– EUR strengthens. ECB’s Asmussen suggest limited impact of rate cut; but expectations rise for May 2nd meeting. Spanish unemploy at 27%.
– GBP is strong as Q1 GDP shocks market with higher print +0.6%y/y.
– GBP trade idea: long at 1.5450, targeting 1.5585, stop at 1.5267.
– JPY rallies; JPN investors are not increasing foreign bond allocations.
– AUD strengthens in line with other commodity FX; news flow quiet.
– CNY rises to record high; global yuan payments increase 37% m/m.
Click here to read the full report: FX Daily
Scotiabank