GBP: Holding onto gains – ING

Today's UK labour market data has had no discernible impact on Pound Sterling (GBP), ING's FX analyst Chris Turner notes.

GBP to stay bid ahead of the UK-EU summit on 19 May

"Private sector pay growth is starting to slow, but last month's large fall in payrolled employees has been revised up (to -47k from -78k). Far more interesting for the Bank of England will be next week's April CPI services release."

"Before all that, however, we have the UK-EU summit on 19 May. Expect sterling to stay bid ahead of that – potentially even seeing EUR/GBP break below 0.84."

May 13, 2025

GBP/USD: Major support at 1.3070 may not come into view so soon – UOB Group

Pound Sterling (GBP) could retest the 1.3140 level vs the US Dollar (USD) before a more sustained recovery can be expected. In the longer run, GBP is expected to weaken, but the major support at 1.3070 may not come into view so soon, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

CNY: Still facing the threat of deflation – Commerzbank

The latest inflation figures were published in China over the weekend, reporting on price developments in April. Consumer prices rose by 0.1% month-on-month, but the annual price change remained negative for the third consecutive month at -0.1%.