Apr 1st 2016: Pound Wobbles as Deficit WIdens

• This morning, the British pound remains on the back foot after further bad news for Chancellor George Osborne. The UK current account deficit ballooned to -32.7bn, while net lending to individuals dropped. The impact has been measured though, as GDP came in above expectations. The pound is under performing its peers this morning, with the EUR/ GBP extending recent gains.

• Elsewhere, the US dollar remains unchanged as traders watch from the sidelines ahead of today’s Non Farm Payrolls.

• Meanwhile the yen pairs are generally giving back some of their recent gains, with the likes of the USD/ JPY and AUD/ JPY on the back foot this morning. This comes after Japanese manufacturing figures came in below estimates this morning.

Coming up today: 

• We start today with UK manufacturing PMI at 09.30, followed by the European uneployment rate at 10.00.
• Then we get the main ticket of US non farm payrolls at 13.30, released alongside the unemployment rate and average hourly earnings. Following this we get ISM manufacturing PMI.

Trade Idea: 

• The pound continues to under perform its peers as the economic recovery falters and Brexit uncertainty reigns.

• A good way to play this is a HIGHER trade on the EUR/ GBP predicting that it will close above 0.8000 in 14 days for a potential return of 203%.

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