Currency Updates:
The dollar index rose following the U.S. jobs data and disappointing German trade and industrial output figures. The GBP reached a 2 month high at 1.5520 against the USD following the surprise Conservatives win. Sterling ended the week as the strongest currency of the week, followed by the AUDUSD after RBA cut interest rate to new record low 2.00% but omitted the language regarding its bias in the policy statement.
The April rebound in U.S. jobs growth boosted Indices and supported the USD on Friday, while a surprise Conservative victory removed fears of a hung British Parliament and was the catalyst for a rally in GBPUSD and European Stock Indices.
Focus turns to the Eurogroup meeting in Brussels today. Greek officials are hopeful that Eurozone finance ministers would recognize the reforms the country has made however European officials expect no breakthroughs at the meeting. That means Greek lenders will remain under pressure, dependent on relatively expensive liquidity from the Greek central bank and at risk of bank runs in case doubts emerge over their ability to pay out deposits.”
Trading Quote of the Day: “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten”- Peter Lynch
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