Sterling finished last week on a high, gaining against a weaker US dollar as US data disappointed. Sterling therefore starts the week over $1.65/£1 against the US dollar, but this is more the pound tracking euro strength against the dollar. With a long weekend in both the UK and USA, data is thin on the ground today. However, there is a wide range of data on the manufacturing, construction and services sectors later in the week. These figures are closely watched to give a picture of UK economic activity so any significant moves will have an impact on sterling and sterling’s prospects. Call in now for a live exchange rate.
In the euro zone, the big news from the long weekend for those returning to their desks today is that European Union leaders will decide on additional aid for Greece by the end of June. Following a meeting in Paris yesterday, Jean-Claude Juncker (head of group euro-area finance ministers) ruled out a “total restructuring” of Greek debt, with the EU and IMF set to wrap up their recent review of the stricken country’s finances. This has helped the euro to recover from lows hit due to concerns that Greece may even need to leave the euro zone completely. In terms of data, there is inflation data released today so call in now for a live exchange rate.
In the USA, the US dollar slipped against a basket of currencies to the lowest level in 3 weeks, having fallen towards the end of last week after poor data dented the outlook for the US currency. With a recovery from the euro off the back of positive moves on Greece, the US dollar is not an attractive prospect for many investors. Later this week we have manufacturing and employment figures that are likely to cement the view that the US recovery will remain sluggish for now.
Elsewhere, the New Zealand dollar jumped to a record high against the US dollar on speculation that the central Bank will raise interest rates after a report showed that business confidence rose to a 12 month high in May. Following the recent earthquake, an emergency rate cut was made in order to compensate for any lack of growth, but many analysts now expect this to be reversed soon. Get in touch now for a live exchange rate.
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Tuesday, 31 May 2011
Friday, 27 May 2011
Sterling ended the week on a high, hitting a 2 ½ month high against the euro as investors speculated that Europe may be expected to extend further aid to help Greece. The pound pushed through the €1.16/£1 barrier – the highest since mid-March - boosted by Asian demand and comments from Eurogroup President Jean-Claude Juncker. Whilst it is clear that the UK does not carry the same issues as Greece, any potential gains against the euro are likely to be capped given the prospect of low interest rates in the UK until late 2011 at the earliest. Whilst Thursday was clearly a positive for many euro buyers, sterling is treading a fine line currently and could quite as easily drop back down. Out today, we have house price figures which on current form look set to disappoint.
In the euro zone, it was a poor day to end a poor week for the region. Eurogroup President Jean-Claude Juncker spooked the markets on Thursday, suggesting that the IMF may not pay the next instalment of aid to Greece and Europe would need to step in and foot the bill, a scenario that would not go down well with the likes of Germany and France. This saw the single currency plummet across the board as investors scrambled to other currencies. The euro also hit a record low against the Swiss franc. Out today, we have German inflation data, so call in now for a live exchange rate.
In the USA, the US dollar slipped against sterling on Thursday after GDP figures came in lower than expected. Many had anticipated an upward revision to 2.2%, but it remained unchanged at 1.8%. In addition, despite an expected fall in the number of weekly jobless claims, this figure increased by 20,000. There is a wide array of data released today, so call in for a live exchange rate.
Elsewhere, the Chinese yuan hit a record high against the US dollar after Chinese authorities adjusted the mid-rate on the ‘pegged’ (i.e. fixed) exchange rate. The Chinese government is set to manipulate the exchange rate to tackle domestic issues such as high inflation, but with a weaker US dollar the yuan may not appreciate as much as they hope. Certainly an interesting one to keep an eye on.
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In the euro zone, it was a poor day to end a poor week for the region. Eurogroup President Jean-Claude Juncker spooked the markets on Thursday, suggesting that the IMF may not pay the next instalment of aid to Greece and Europe would need to step in and foot the bill, a scenario that would not go down well with the likes of Germany and France. This saw the single currency plummet across the board as investors scrambled to other currencies. The euro also hit a record low against the Swiss franc. Out today, we have German inflation data, so call in now for a live exchange rate.
In the USA, the US dollar slipped against sterling on Thursday after GDP figures came in lower than expected. Many had anticipated an upward revision to 2.2%, but it remained unchanged at 1.8%. In addition, despite an expected fall in the number of weekly jobless claims, this figure increased by 20,000. There is a wide array of data released today, so call in for a live exchange rate.
Elsewhere, the Chinese yuan hit a record high against the US dollar after Chinese authorities adjusted the mid-rate on the ‘pegged’ (i.e. fixed) exchange rate. The Chinese government is set to manipulate the exchange rate to tackle domestic issues such as high inflation, but with a weaker US dollar the yuan may not appreciate as much as they hope. Certainly an interesting one to keep an eye on.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 26 May 2011
Sterling strengthened for a second day against the US dollar as data showed that U.K. exports helped the economy resume growth in the first quarter, outweighing the biggest slump in consumer spending in almost two years. Sterling also gained against the euro, breaking beyond €1.15/£1 against the single currency as euro weakness gave sterling a boost. The biggest gains were against the South African rand, where sterling surged by nearly 2% against the notoriously volatile currency.
In the euro zone, the euro hit a fresh low against the ‘safe haven’ Swiss franc yesterday on uncertainty over the Greek debt crisis. Greece is very much under the spotlight and yesterday, Greek newspaper reports suggested that the Greek government is considering organising a referendum on additional austerity measures after it failed to reach consensus with the opposition, casting further doubt on the country's ability to tackle its debt crisis. The lack of clear direction over the country’s issues is causing concerns amongst global investors. Despite this, the euro strengthened against the US dollar on rumours that China has been actively buying Portuguese “bail out” bonds.
In the USA, the US dollar had strengthened against the euro on concerns over the Greek debt crisis, but the euro has seen some strength overnight. Data showed that US durable goods orders decreased 3.6% following a 4.1 percent jump in March, falling the most in six months, which did not help the currency. In addition, house prices in the U.S. declined 0.3 percent in March from February, less than the 0.5 percent drop forecast in a Bloomberg News survey. Out later today, we have GDP figures for the USA, so call in now for a live exchange rate.
Elsewhere the South African rand fell to its weakest level in more than two months against the dollar as concern that Europe’s debt crisis is deepening sapped demand for higher- yielding, ‘riskier’ commodity based assets. Australia’s dollar also slipped on a report that the Chinese sovereign wealth fund would buy New Zealand assets.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro hit a fresh low against the ‘safe haven’ Swiss franc yesterday on uncertainty over the Greek debt crisis. Greece is very much under the spotlight and yesterday, Greek newspaper reports suggested that the Greek government is considering organising a referendum on additional austerity measures after it failed to reach consensus with the opposition, casting further doubt on the country's ability to tackle its debt crisis. The lack of clear direction over the country’s issues is causing concerns amongst global investors. Despite this, the euro strengthened against the US dollar on rumours that China has been actively buying Portuguese “bail out” bonds.
In the USA, the US dollar had strengthened against the euro on concerns over the Greek debt crisis, but the euro has seen some strength overnight. Data showed that US durable goods orders decreased 3.6% following a 4.1 percent jump in March, falling the most in six months, which did not help the currency. In addition, house prices in the U.S. declined 0.3 percent in March from February, less than the 0.5 percent drop forecast in a Bloomberg News survey. Out later today, we have GDP figures for the USA, so call in now for a live exchange rate.
Elsewhere the South African rand fell to its weakest level in more than two months against the dollar as concern that Europe’s debt crisis is deepening sapped demand for higher- yielding, ‘riskier’ commodity based assets. Australia’s dollar also slipped on a report that the Chinese sovereign wealth fund would buy New Zealand assets.
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Wednesday, 25 May 2011
Sterling gained by 0.5% against the US dollar yesterday morning, recovering from an earlier 7 week low that was hit after investors speculated over the scope and extent of a potential downgrade of UK banks by rating agency Moody’s. Many investors covered short positions in order to avoid the volatility of a potential announcement and this helped the pound recover slightly, whilst mixed UK public sector borrowing figures had little or no effect. Data showed that net borrowing dropped from last month’s £15.6bn to £7.7bn, but this was higher than the £5bn that had been forecast by the markets. Sterling still remains vulnerable against the US dollar as it is liable to track euro weakness against the US currency in the wake of the next round of the euro zone debt crisis. Call in now for a live exchange rate, as we have revised GDP data which could cause some movement.
In the euro zone, the euro edged up from a two-month low against the dollar on Tuesday, helped by stronger than expected German economic data, but the gains are likely to be short lived in the wake of a resurgence in the European debt crisis. The euro has dropped by 5% since early May, taking a hammering on speculation that the Greek bailout will need restructuring and on fears of a contagion spread to Spain and Italy. Out today, there is German consumer confidence figures so call in now for a live exchange rate.
In the USA, the US dollar slipped yesterday as strong data helped to boost risk appetite and reverse (to an extent) Monday’s moves. Figures showed that purchases of new houses rose to the highest level this year. Sales increased 7.3 percent to a 323,000 annual pace last month, surprising many investors who had expected poor figures. Combined with the better than expected German figures, this saw less panic from investors and as such, they moved out of US dollars into other ‘riskier’ currencies. There is key durable goods order data released today, so call in for a live exchange rate.
Elsewhere, the New Zealand dollar gained more than 1 percent against the US dollar after a quarterly survey on behalf of the Reserve Bank of New Zealand showed inflation expectations in the country rose in the second quarter, boosting expectations that the central bank would look to hike rates in the coming months. In addition, the Australian dollar was up 0.3% to $1.0542, off a one-month low of $1.0478 hit on Monday.
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In the euro zone, the euro edged up from a two-month low against the dollar on Tuesday, helped by stronger than expected German economic data, but the gains are likely to be short lived in the wake of a resurgence in the European debt crisis. The euro has dropped by 5% since early May, taking a hammering on speculation that the Greek bailout will need restructuring and on fears of a contagion spread to Spain and Italy. Out today, there is German consumer confidence figures so call in now for a live exchange rate.
In the USA, the US dollar slipped yesterday as strong data helped to boost risk appetite and reverse (to an extent) Monday’s moves. Figures showed that purchases of new houses rose to the highest level this year. Sales increased 7.3 percent to a 323,000 annual pace last month, surprising many investors who had expected poor figures. Combined with the better than expected German figures, this saw less panic from investors and as such, they moved out of US dollars into other ‘riskier’ currencies. There is key durable goods order data released today, so call in for a live exchange rate.
Elsewhere, the New Zealand dollar gained more than 1 percent against the US dollar after a quarterly survey on behalf of the Reserve Bank of New Zealand showed inflation expectations in the country rose in the second quarter, boosting expectations that the central bank would look to hike rates in the coming months. In addition, the Australian dollar was up 0.3% to $1.0542, off a one-month low of $1.0478 hit on Monday.
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Tuesday, 24 May 2011
Sterling hit a 2 month high against the euro yesterday as Bank of EngalndChief Economist Spencer Dale said in an interview over the weekend that Bank of England policy makers should increase interest rates to avoid damaging the UKeconomy. Sterling benefited from euro weakness, but this increased risk aversion and saw the pound fall by 0.7% against the US dollar to hit a low of $1.6087/£1 as investors cut exposure to riskier assets. One currency analyst did feel that sterling had been oversold against the US dollar, and as such there could be some upside against the US dollar in the coming weeks. Out later today, we have public sector borrowing figures, which could see some movement so speak to one of the team for a live exchange rate.
The euro fell broadly yesterday, hitting a two-month low against the US dollar and sterling as concerns grew over a potential restructuring of Greek debt. After a flurry of credit rating downgrades over the last few days, rating agency Fitch yesterday cut its outlook for Belgiumto negative. The euro hit a record low against the Swiss franc, with more losses expected on fears that the euro zone debt crisis is getting worse, with doubts over Spain's austerity measures also emerging as the ruling party lost out in key regional elections. This current bout of the debt crisis has the potential to cause some serious issues, so ensure you cover yourself to avoid any adverse market movements.
The US dollar rose against all of its 16 most-traded counterparts as the euro slipped below $1.40 for the first time in 2 months as concerns over a resurgent debt crisis in Europe grew and investors scrambled to put their funds into the safe haven currency of the US dollar. The high yielding ‘riskier; Australian dollar was one of the worst performers against the US dollar falling nearly 1.5%. Out today, we have new home sales data so call in for a live price.
Elsewhere, other traditionally risky high yielding currencies also declined, with the South African rand dropping by 2% against the US currency and nearly 1% against sterling. Call in now for a live price – one upside of the current movement is that sterling has gained against the ‘commodity’ based currencies.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
The euro fell broadly yesterday, hitting a two-month low against the US dollar and sterling as concerns grew over a potential restructuring of Greek debt. After a flurry of credit rating downgrades over the last few days, rating agency Fitch yesterday cut its outlook for Belgiumto negative. The euro hit a record low against the Swiss franc, with more losses expected on fears that the euro zone debt crisis is getting worse, with doubts over Spain's austerity measures also emerging as the ruling party lost out in key regional elections. This current bout of the debt crisis has the potential to cause some serious issues, so ensure you cover yourself to avoid any adverse market movements.
The US dollar rose against all of its 16 most-traded counterparts as the euro slipped below $1.40 for the first time in 2 months as concerns over a resurgent debt crisis in Europe grew and investors scrambled to put their funds into the safe haven currency of the US dollar. The high yielding ‘riskier; Australian dollar was one of the worst performers against the US dollar falling nearly 1.5%. Out today, we have new home sales data so call in for a live price.
Elsewhere, other traditionally risky high yielding currencies also declined, with the South African rand dropping by 2% against the US currency and nearly 1% against sterling. Call in now for a live price – one upside of the current movement is that sterling has gained against the ‘commodity’ based currencies.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 23 May 2011
Sterling starts the week slightly lower against the US dollar, having tracked the euro’s decline against the US currency over the weekend. Sterling is hovering just above the €1.15/£1 mark after concerns over the euro zone debt crisis pushed the single currency lower. The subsequent drop in risk appetite has seen demand for the safe haven US dollar and the FTSE 100 open lower this morning. Despite data last week showing higher than expected inflation and retail sales figures in the UK, analysts are still lacklustre over the UK recovery. The Bank of England’s chief economist Spencer Dale said in an interview over the weekend that the MPC must start to tackle inflation by raising interest rates or risk damaging the economy and its own credibility. Out this week we have borrowing and revised GDP figures, so call in now for a live exchange rate.
In the euro zone, the euro continued to suffer on worries over a potential restructuring of Greek debt. Rating agency Fitch downgraded Greece's rating last week and Standard & Poor fanned the flames by doing the same to Italy over the weekend. A debt restructuring is the last resort for Greece, and the country’s prime minister said that the country should push on with budget cuts to overcome the debt crisis. It is relatively quiet for data this week, but expect the debt crisis to cause significant movements.
In the USA, the US dollar starts the week at a 2 month high against the euro as the fragility of the debt crisis situation has a knock on effect on the risk appetite of investors. Markets are currently positioned to expect a further drop from the single currency, which would see sterling drop against the US dollar. Out this week, we have home sales and GDP figures so call in now for a live exchange rate.
Elsewhere, markets are keeping a close eye on a fresh volcanic eruption in Iceland after travel and freight disruption caused shockwaves around the globe that cost the airline industry around £1bn. With so many fragile recoveries, similar disruptions are the last thing financial markets need.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro continued to suffer on worries over a potential restructuring of Greek debt. Rating agency Fitch downgraded Greece's rating last week and Standard & Poor fanned the flames by doing the same to Italy over the weekend. A debt restructuring is the last resort for Greece, and the country’s prime minister said that the country should push on with budget cuts to overcome the debt crisis. It is relatively quiet for data this week, but expect the debt crisis to cause significant movements.
In the USA, the US dollar starts the week at a 2 month high against the euro as the fragility of the debt crisis situation has a knock on effect on the risk appetite of investors. Markets are currently positioned to expect a further drop from the single currency, which would see sterling drop against the US dollar. Out this week, we have home sales and GDP figures so call in now for a live exchange rate.
Elsewhere, markets are keeping a close eye on a fresh volcanic eruption in Iceland after travel and freight disruption caused shockwaves around the globe that cost the airline industry around £1bn. With so many fragile recoveries, similar disruptions are the last thing financial markets need.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 19 May 2011
Sterling suffered following the release of the minutes of the last Bank of England meeting. Voting was the same [6 to 3 in favour of no change in interest rates] and the sentiment was the same – lets wait and see how the recovery takes hold before increasing interest rates. The end result is that the brief bounce that sterling experienced following the high inflation data of Tuesday drifted away as the markets have pushed back possible dates for when the BoE will increase interest rates. Unemployment data came in slightly better than expected at 2.46 million. As can be seen from this weeks movement exchange rates continue to be volatile so call in now to get the latest information and the latest rates.
The debate in the Euro zone is obviously heating up over Greek debt with the European Central Bank being at odds with the politicians. The ECB is taking a hard-line in that any change to repayment dates is a default whereas the politicians want to present it as a “restructuring”. Will be interesting to see who wins and what the outcome is. Despite this the euro still continues to outshine sterling giving the increasing interest rate environment and the strong growth being enjoyed by Germanyand France. Call in now to get the latest rate.
The minutes of the last Federal Reserve meeting were released. Risk aversion increased as it was clear from the minutes that following the completion of the second phase of quantitative easing at the end of June the expectation was for a tightening in liquidity. The Federal Reserve Chairman stated the USeconomy still needs monetary support. It has been suggested that if there is a large enough increase in the $14.3 trillion limit on the nation’s debt, there is a possibility some of these resources will be directed towards helping the Federal Reserve when the central bank chooses to tighten monetary policy. This increased risk aversion benefitted the US$ which is pulling back towards the US$1.60/£1 level.
New Zealand's currency did well yesterday as statistics showed there was a 2.2% increase in producer input prices in the first quarter of this year. The Canadian dollar lost ground as expectations of an increase in interest rates fell against many of its major counterparts and even hit a seven-week low against the US dollar. It hit a low of 97.26 cents. There is speculation that the Canadian dollar will decline to $1.05 against the US dollar by the end of year.
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The debate in the Euro zone is obviously heating up over Greek debt with the European Central Bank being at odds with the politicians. The ECB is taking a hard-line in that any change to repayment dates is a default whereas the politicians want to present it as a “restructuring”. Will be interesting to see who wins and what the outcome is. Despite this the euro still continues to outshine sterling giving the increasing interest rate environment and the strong growth being enjoyed by Germanyand France. Call in now to get the latest rate.
The minutes of the last Federal Reserve meeting were released. Risk aversion increased as it was clear from the minutes that following the completion of the second phase of quantitative easing at the end of June the expectation was for a tightening in liquidity. The Federal Reserve Chairman stated the USeconomy still needs monetary support. It has been suggested that if there is a large enough increase in the $14.3 trillion limit on the nation’s debt, there is a possibility some of these resources will be directed towards helping the Federal Reserve when the central bank chooses to tighten monetary policy. This increased risk aversion benefitted the US$ which is pulling back towards the US$1.60/£1 level.
New Zealand's currency did well yesterday as statistics showed there was a 2.2% increase in producer input prices in the first quarter of this year. The Canadian dollar lost ground as expectations of an increase in interest rates fell against many of its major counterparts and even hit a seven-week low against the US dollar. It hit a low of 97.26 cents. There is speculation that the Canadian dollar will decline to $1.05 against the US dollar by the end of year.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 18 May 2011
UK inflation hit 4.5% in April, an increase from March’s 4%, a 2-1/2 year high. With the U.K. economy contracting in the fourth quarter of 2010 and hardly expanding in the first quarter 2011, coupled with cuts in government spending, the Governor of the Bank of England Mervyn King warns that in reacting too quickly to rising prices [i.e. increasing UK interest rates] could harm the economy. Initially sterling strengthened jumped yesterday after a bigger-than-expected rise in UK consumer prices, as investors acknowledged higher inflation will hardly lead to an interest rate anytime soon. Out today we have BoE’s MPC minutes which will shed further light on the BoE’s thinking. So call in now to get the latest news and prices.
The euro is weighed down by concerns that Greece might restructure its massive debt. Jean-Claude Juncker, chairman of euro zone finance ministers, said for the first time yesterday that Greece may have to ask investors to extend the maturities of the Greek debt. This will be a default in most peoples minds. The IMF will complete in mid- June its detailed analysis of Greek debt which means another month of uncertainty. The main support for the euro is that interest rates at least in the short term are expected to rise faster in the euro zone than in the U.S. German investor sentiment data released was weaker than expected. Call in now to see which way the euro is moving today.
The price of oil and the dollar are going in opposite directions. Oil prices went down slightly yesterday, pressured by a firmer dollar. Industrial and housing data out yesterday in the US disappointed. This led to an increase in risk aversion which benefited the US$.
The Australian dollar was up 0.45% at $1.0600, helped by yesterday’s positive minutes from the Reserve Bank of Australia. With regards to the Chinese Yuan, economist have suggested that it is possible for it to rise 5-6% this year as China still needs to curb consumer inflation. The New Zealand dollar fell versus the US dollar as stocks and commodity prices weakened..
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
The euro is weighed down by concerns that Greece might restructure its massive debt. Jean-Claude Juncker, chairman of euro zone finance ministers, said for the first time yesterday that Greece may have to ask investors to extend the maturities of the Greek debt. This will be a default in most peoples minds. The IMF will complete in mid- June its detailed analysis of Greek debt which means another month of uncertainty. The main support for the euro is that interest rates at least in the short term are expected to rise faster in the euro zone than in the U.S. German investor sentiment data released was weaker than expected. Call in now to see which way the euro is moving today.
The price of oil and the dollar are going in opposite directions. Oil prices went down slightly yesterday, pressured by a firmer dollar. Industrial and housing data out yesterday in the US disappointed. This led to an increase in risk aversion which benefited the US$.
The Australian dollar was up 0.45% at $1.0600, helped by yesterday’s positive minutes from the Reserve Bank of Australia. With regards to the Chinese Yuan, economist have suggested that it is possible for it to rise 5-6% this year as China still needs to curb consumer inflation. The New Zealand dollar fell versus the US dollar as stocks and commodity prices weakened..
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 17 May 2011
Sterling slipped against the euro yesterday as investors became concerned ahead of key UK figures released later this week. The Bank of England minutes, inflation and unemployment figures are all expected to compound the view that interest rates are set to remain on hold for a considerable time. Current trends show that if the pound does strengthen against the euro, it is quickly sold off again, making it even harder to buy at the right time. Sterling did strengthen against the US dollar, as it tracked gains made by the euro against the US currency. Sterling had lost a considerable amount against the US dollar last week as a sell off in commodities saw a flight to the relative safety of the US dollar. Out today, we have inflation figures so call in now as this could cause significant volatility.
In the euro zone, the euro had a strong day. Despite concerns that the arrest of IMF chief Dominique Strauss-Kahn would impact on today’s meeting of European finance ministers, the euro rebounded as confidence grew that a solution would be reached regarding Greece to avoid a restructuring of the country’s debt. Greece is struggling to meet the term’s of last year’s €110bn package, but ministers are expected to show solidarity with the stricken country which should support the euro and potentially see sterling fall back towards €1.10 again. In terms of data, there is some economic sentiment data released which has caused movement in the past so call in now for a live exchange rate.
In the USA, the US dollar suffered across the board falling against the euro and dropping by 1% against the Swiss franc as investors battled to come to terms with the country’s fiscal position. In addition, optimism that European finance ministers would manage to negotiate a deal that avoids a debt restructuring saw a flow from US dollars to euros. Out today we have some housing figures which could cause some movement.
Elsewhere, commodity based currencies continue to suffer following last week’s sudden drop in commodity prices. Commodity prices have been particularly high and this has caused inflation across many countries. Many argue that commodity prices are a bubble waiting to burst, so that the global economy can get on with recovery without inflationary pressures. We shall have to see what happens.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro had a strong day. Despite concerns that the arrest of IMF chief Dominique Strauss-Kahn would impact on today’s meeting of European finance ministers, the euro rebounded as confidence grew that a solution would be reached regarding Greece to avoid a restructuring of the country’s debt. Greece is struggling to meet the term’s of last year’s €110bn package, but ministers are expected to show solidarity with the stricken country which should support the euro and potentially see sterling fall back towards €1.10 again. In terms of data, there is some economic sentiment data released which has caused movement in the past so call in now for a live exchange rate.
In the USA, the US dollar suffered across the board falling against the euro and dropping by 1% against the Swiss franc as investors battled to come to terms with the country’s fiscal position. In addition, optimism that European finance ministers would manage to negotiate a deal that avoids a debt restructuring saw a flow from US dollars to euros. Out today we have some housing figures which could cause some movement.
Elsewhere, commodity based currencies continue to suffer following last week’s sudden drop in commodity prices. Commodity prices have been particularly high and this has caused inflation across many countries. Many argue that commodity prices are a bubble waiting to burst, so that the global economy can get on with recovery without inflationary pressures. We shall have to see what happens.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 16 May 2011
Sterling slipped on Friday after stronger than expected GDP growth in Europe reinforced the view that interest rates would rise at a faster rate in the euro zone than in the UK. Sterling also slipped against the US dollar, falling below the $1.62/ £1 mark. Stronger than expected GDP growth in France and Germany sets the UK up well in the long term, as you would expect growing economies to see demand for UK exports increase. It is a quiet day for data today, but a fairly busy week ahead. There are inflation figures released tomorrow ahead of the Bank of England’s minutes on Wednesday. These are both key pieces of data with reference to the likelihood of a UK interest rate hike, so ensure you speak to one of the team to avoid losing out.
In the euro zone, the big news over the weekend was the arrest of IMF chief Dominique Strauss-Kahn for an alleged sexual assault. The euro fell to a 7 week low against the US dollar as investor risk appetite took a hit and Greece worried that the arrest could postpone a debt restructuring. Strauss-Kahn had been due to meet euro zone finance ministers today to discuss debt-ridden Greece and a potential restructuring of the country’s bail out package, and was seen as a key player in negotiations. Ensure you call in now to take advantage of any favourable moves off the back of the news.
In the USA, the US dollar strengthened towards the end of last week as a sharp sell off in commodities hurt risk appetite and saw investors flock to the ‘safer’ US dollar. At the start of the coming week, the US dollar is likely to remain out of the limelight with the focus on the European finance minister meeting. However, Wednesday sees the Federal Reserve’s policy meeting minutes, which are likely to bring the focus back to monetary policy in the USA. Call in now for a live exchange rate.
Elsewhere, the Japanese yen was helped on Friday by stronger than expected figures for machinery orders, but the figures are known to be extremely volatile and as such gave no clues as to the impact of the recent earthquake. Call in now to speak to one of the team and ensure you don’t lose out.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the big news over the weekend was the arrest of IMF chief Dominique Strauss-Kahn for an alleged sexual assault. The euro fell to a 7 week low against the US dollar as investor risk appetite took a hit and Greece worried that the arrest could postpone a debt restructuring. Strauss-Kahn had been due to meet euro zone finance ministers today to discuss debt-ridden Greece and a potential restructuring of the country’s bail out package, and was seen as a key player in negotiations. Ensure you call in now to take advantage of any favourable moves off the back of the news.
In the USA, the US dollar strengthened towards the end of last week as a sharp sell off in commodities hurt risk appetite and saw investors flock to the ‘safer’ US dollar. At the start of the coming week, the US dollar is likely to remain out of the limelight with the focus on the European finance minister meeting. However, Wednesday sees the Federal Reserve’s policy meeting minutes, which are likely to bring the focus back to monetary policy in the USA. Call in now for a live exchange rate.
Elsewhere, the Japanese yen was helped on Friday by stronger than expected figures for machinery orders, but the figures are known to be extremely volatile and as such gave no clues as to the impact of the recent earthquake. Call in now to speak to one of the team and ensure you don’t lose out.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 12 May 2011
Sterling jumped by 1.3% against the euro, breaking the €1.15/ £1 barrier for the first time in 6 weeks after Bank of England Governor Mervyn King surprised markets by raising long term inflation forecasts to 5% in yesterday’s quarterly inflation report, increasing the likelihood of an interest rate hike sooner than expected. Sterling had been under pressure ahead of the release as many expected the BoE to cut growth and inflation forecasts after a string of shaky data left investors questioning the validity of the UK’s recovery. What shocked the markets was that Mervyn King is normally so pessimistic regarding the UK’s prospects, and with such a positive move, the markets jumped to buy sterling. Now is a great time to be buying euros, so call in for a price.
The euro fell yesterday, remaining pressured by uncertainty about whether euro zone officials will restructure the bail out package for Greece. Investors unwound risky positions which saw the single currency fall to a fresh 3 week low against the US dollar. The euro has gained 2.5% this year against other G10 currencies so far this year off the back of higher interest rate expectations in the euro zone. German wholesale price inflation came in far worse than expected which did not help either. In terms of data releases today, we have industrial production and the ECB’s monthly bulletin, so call in now for a live exchange rate.
In the USA, the U.S. deficit expanded to $48.2 billion, the widest since June 2010, and nearly $2bn worse than had been expected. With all the action in the euro zone, the US dollar benefited from risk averse buying, with many investors pulling out of risky investments in AUS dollars, NZ dollars and euros. Exports leapt to a new record but imports rose nearly 5% as oil prices jumped. Out today, we have retail sales and factory gate inflation – both key numbers, so call in now to make sure you don’t miss out.
Elsewhere, commodity based currencies fell as a result of a general unwinding in risk appetite following the concerns over Greece and the euro zone. Sterling jumped over 2% against the South African rand, hitting R11.25 for the first time in several months. The pound also saw gains against the NZ dollar and Australian dollar.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
The euro fell yesterday, remaining pressured by uncertainty about whether euro zone officials will restructure the bail out package for Greece. Investors unwound risky positions which saw the single currency fall to a fresh 3 week low against the US dollar. The euro has gained 2.5% this year against other G10 currencies so far this year off the back of higher interest rate expectations in the euro zone. German wholesale price inflation came in far worse than expected which did not help either. In terms of data releases today, we have industrial production and the ECB’s monthly bulletin, so call in now for a live exchange rate.
In the USA, the U.S. deficit expanded to $48.2 billion, the widest since June 2010, and nearly $2bn worse than had been expected. With all the action in the euro zone, the US dollar benefited from risk averse buying, with many investors pulling out of risky investments in AUS dollars, NZ dollars and euros. Exports leapt to a new record but imports rose nearly 5% as oil prices jumped. Out today, we have retail sales and factory gate inflation – both key numbers, so call in now to make sure you don’t miss out.
Elsewhere, commodity based currencies fell as a result of a general unwinding in risk appetite following the concerns over Greece and the euro zone. Sterling jumped over 2% against the South African rand, hitting R11.25 for the first time in several months. The pound also saw gains against the NZ dollar and Australian dollar.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 11 May 2011
Sterling slipped from a one month high against the euro and dropped against the US dollar yesterday as investors braced themselves for further losses ahead of today’s Bank of England quarterly inflation report. The Bank is expected to forecast higher inflation in the short term, but importantly it is expected to revise its growth forecast for the UK economy downwards. The report is expected to outline the central bank’s justification for keeping interest rates at an all time low and as such, this will keep sterling under pressure – especially against the euro. House prices fell at a slower rate and retail sales grew at the fastest pace for 5 years, but the outlook for the UK economy remained gloomy. Call in now for a live exchange rate to ensure you don’t miss out on any unexpected moves.
In the euro zone, the single currency had a volatile ride yesterday after fresh media reports (that were naturally later denied by the Greek government) suggested that Greek debt would be restructured as early as June. Analysts said that risks remain for the euro with relation to the sovereign debt crisis, and as such the next ‘target’ for sterling/ euro is at €1.1490/ £1. In terms of data, we have German inflation figures released.
In the USA, the media reports over a potential Greek restructuring saw the US dollar swing between gains and losses against the euro – losing as rumours circulated over the deal, but gaining when the reports were denied. Elsewhere, economic optimism figures came in better than expected and import prices crept up – positive news given this could boost inflation and see the Federal Reserve cut back on the current ultra-loose monetary policy.
Elsewhere, the Swiss franc fell against the US dollar as consumer price inflation figures showed that inflation slowed to 0.1% in April and year on year figures dipped to just 0.3%. This missed estimates by a long way and fuelled speculation that the Swiss economy is heading for deflation.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the single currency had a volatile ride yesterday after fresh media reports (that were naturally later denied by the Greek government) suggested that Greek debt would be restructured as early as June. Analysts said that risks remain for the euro with relation to the sovereign debt crisis, and as such the next ‘target’ for sterling/ euro is at €1.1490/ £1. In terms of data, we have German inflation figures released.
In the USA, the media reports over a potential Greek restructuring saw the US dollar swing between gains and losses against the euro – losing as rumours circulated over the deal, but gaining when the reports were denied. Elsewhere, economic optimism figures came in better than expected and import prices crept up – positive news given this could boost inflation and see the Federal Reserve cut back on the current ultra-loose monetary policy.
Elsewhere, the Swiss franc fell against the US dollar as consumer price inflation figures showed that inflation slowed to 0.1% in April and year on year figures dipped to just 0.3%. This missed estimates by a long way and fuelled speculation that the Swiss economy is heading for deflation.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 10 May 2011
Sterling fell to its lowest in nearly three weeks against the US dollar yesterday, getting dragged down by euro weakness against the US dollar as a downgrade of Greece's credit rating worsened euro zone debt concerns. Sterling dropped to a low of $1.6270/ £1 – the lowest since April 19th. In a quiet day for UK data, the market focus was very much on the euro zone, but there are key figures released on Wednesday in the form of the Bank of England’s quarterly inflation report. A poor run of figures last week put a dampener on expectations that the Bank of England will increase interest rates before the end of 2011. Today also sees house price data and retail sales figures so call in now for a live exchange rate.
In the euro zone, the euro fell against the US dollar yesterday, hitting its lowest level in nearly three weeks after credit rating agency Standard and Poor's cut Greece's debt rating to near junk bond status. S & P stated that it was increasingly likely that Greece would need to restructure its debt, as other European countries would be putting the holders of Greek debt under pressure to accept later repayments to loosen up the terms of the bailout and protect market sentiment. Out today, there is French and Italian industrial production figures, so call in for a live exchange rate.
In the USA, the US dollar saw a boost from risk aversion related to a re-emergence of the Greek debt crisis after the credit rating downgrade. Out later today, there is import prices and economic optimism figures. In addition, a member of the Fed’s policy making team speaks at a conference in St. Louis, which could potentially have an impact. Call in now for a live exchange rate.
Elsewhere, the Canadian dollar reversed advances against its U.S. counterpart after the Greek rating cut, as global demand for ‘riskier’ assets slipped following the announcement. In a similar vein, the South African rand weakened against the US dollar falling as much as 0.6% to 6.7471 per dollar, and traded 0.5% weaker at 6.7380.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro fell against the US dollar yesterday, hitting its lowest level in nearly three weeks after credit rating agency Standard and Poor's cut Greece's debt rating to near junk bond status. S & P stated that it was increasingly likely that Greece would need to restructure its debt, as other European countries would be putting the holders of Greek debt under pressure to accept later repayments to loosen up the terms of the bailout and protect market sentiment. Out today, there is French and Italian industrial production figures, so call in for a live exchange rate.
In the USA, the US dollar saw a boost from risk aversion related to a re-emergence of the Greek debt crisis after the credit rating downgrade. Out later today, there is import prices and economic optimism figures. In addition, a member of the Fed’s policy making team speaks at a conference in St. Louis, which could potentially have an impact. Call in now for a live exchange rate.
Elsewhere, the Canadian dollar reversed advances against its U.S. counterpart after the Greek rating cut, as global demand for ‘riskier’ assets slipped following the announcement. In a similar vein, the South African rand weakened against the US dollar falling as much as 0.6% to 6.7471 per dollar, and traded 0.5% weaker at 6.7380.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 9 May 2011
Sterling climbed against the euro and US dollar on Friday as higher than expected producer price inflation left many speculating that the Bank of England could raise interest rates sooner than expected. In addition, the initial $11bn float of a commodity trader in London also saw high demand for sterling. In terms of data this week, the markets will be eyeing the Bank of England’s quarterly inflation report – due out on Wednesday. This will give clues as to how policymakers expect to balance above-target inflation with stuttering UK economic growth. Poor data last week added to a poor picture of UK economic recovery, leaving many not expecting a rate hike until late 2011 at the earliest. Call in now for a live exchange rate.
In the euro zone, the big news on Friday came just at the close of business in the UK. A report (later denied by the Greek government) in a German newspaper suggested that the Greek government had been in secret negotiations about a possible euro zone exit. This (unsurprisingly) saw the euro plunge against its major counterparts, posting the biggest weekly loss against the US dollar since January. So far today, the currency is a little more stable as Germany’s trade balance posted an even higher surplus. Out later this week, there is a wide variety of industrial data finishing with GDP figures on Friday that could see some volatility so call in now for a live exchange rate.
In the USA, the US dollar got a boost on Friday after non-farm payroll figures showed that employers added 244,000 last month – far higher than what economists had expected. This helped risk appetite globally, and was one of the reasons why sterling strengthened on Friday. Out later this week, there is trade balance, inflation and retail sales data so call in now for a live exchange rate.
Elsewhere, the strong US employment figures, combined with strong Canadian employment figures boosted risk appetite and undermined strength for the Canadian and Australian dollars – despite a recent drop in commodity prices.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the big news on Friday came just at the close of business in the UK. A report (later denied by the Greek government) in a German newspaper suggested that the Greek government had been in secret negotiations about a possible euro zone exit. This (unsurprisingly) saw the euro plunge against its major counterparts, posting the biggest weekly loss against the US dollar since January. So far today, the currency is a little more stable as Germany’s trade balance posted an even higher surplus. Out later this week, there is a wide variety of industrial data finishing with GDP figures on Friday that could see some volatility so call in now for a live exchange rate.
In the USA, the US dollar got a boost on Friday after non-farm payroll figures showed that employers added 244,000 last month – far higher than what economists had expected. This helped risk appetite globally, and was one of the reasons why sterling strengthened on Friday. Out later this week, there is trade balance, inflation and retail sales data so call in now for a live exchange rate.
Elsewhere, the strong US employment figures, combined with strong Canadian employment figures boosted risk appetite and undermined strength for the Canadian and Australian dollars – despite a recent drop in commodity prices.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Friday, 6 May 2011
Sterling recovered from a 13-month low against the euro on Thursday after European Central Bank President Jean- Claude Trichet signalled interest-rate increases may be delayed. This saw many investors lose interest in the single currency after speculation earlier in the week had focussed on potential rate hikes in the euro zone as early as next month. Sterling had dropped to €1.1057/£1 early yesterday morning after poor services figures saw confidence in the UK recovery sink even further but ended the day up 1.3%. The figures topped a pretty poor week for UK data in which services, construction and manufacturing activity figures all came in worse than expected. After the drop in CPI inflation to 4.0% in March, the Bank of England kept rates at a record low of 0.5% yesterday in a widely expected move following the run of subdued data that cast doubt on the strength of Britain's economic recovery. Avoid currency volatility and call in now to speak to one of the team.
In the euro zone, speculation had been rife this week that the European Central Bank would signal another interest rate hike as early as next month. However, the bank left rates at 1.25 percent at its monthly meeting, having raised them in April to end two years of crisis-induced record low interest rates. As a result of the apparent ‘volte-face’ by European Central Bank President Jean-Claude Trichet, the euro fell below $1.47 and dropped against sterling as his comments did not signal an imminent interest rate hike as many had expected. Out today, there is German industrial data so call in to ensure you don’t lose out to adverse movements.
In the USA, figures released yesterday showed a sharp rise in first-time U.S. jobless claims, hitting the highest level in 8 months. In addition, poor service sector figures also increased general risk aversion in markets and caused some to worry that a slower U.S. economy could hurt global growth. This week has seen the USA’s monetary policy scrutinised, and there is unlikely to be any sort of rate increase for considerable time. Out today, there are key non-farm payroll figures, so call in to make sure you take advantage.
Elsewhere, the South African rand declined to its weakest level in more than a week against the US dollar after commodity prices dropped amid concern global growth is slowing. The Canadian dollar also fell for a fourth straight after the longest losing streak since December as commodities including crude oil tumbled. This just shows how volatile most currencies are and how important it is to put a strategy in place to protect yourself.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, speculation had been rife this week that the European Central Bank would signal another interest rate hike as early as next month. However, the bank left rates at 1.25 percent at its monthly meeting, having raised them in April to end two years of crisis-induced record low interest rates. As a result of the apparent ‘volte-face’ by European Central Bank President Jean-Claude Trichet, the euro fell below $1.47 and dropped against sterling as his comments did not signal an imminent interest rate hike as many had expected. Out today, there is German industrial data so call in to ensure you don’t lose out to adverse movements.
In the USA, figures released yesterday showed a sharp rise in first-time U.S. jobless claims, hitting the highest level in 8 months. In addition, poor service sector figures also increased general risk aversion in markets and caused some to worry that a slower U.S. economy could hurt global growth. This week has seen the USA’s monetary policy scrutinised, and there is unlikely to be any sort of rate increase for considerable time. Out today, there are key non-farm payroll figures, so call in to make sure you take advantage.
Elsewhere, the South African rand declined to its weakest level in more than a week against the US dollar after commodity prices dropped amid concern global growth is slowing. The Canadian dollar also fell for a fourth straight after the longest losing streak since December as commodities including crude oil tumbled. This just shows how volatile most currencies are and how important it is to put a strategy in place to protect yourself.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 5 May 2011
Sterling fell to a new 13 month low against the euro yesterday as UK construction data added to Tuesday’s poor manufacturing figures and exacerbated sterling’s fall. In addition, reports showed U.K. house prices fell in April by 0.2%, the first decline in three months, which saw an increase in speculation that the Bank of England will keep rates at a record low. Bank of England policymakers meet tomorrow for their monthly interest rate meeting, and most are expecting the Bank to keep the key rate at 0.5 percent when they announce their next decision tomorrow, according to a Bloomberg survey. However, the Bank of England could surprise everyone and tighten policy so ensure you protect yourself by speaking to one of the team today.
In the euro zone, the euro remained strong against the US dollar and sterling despite retail sales unexpectedly dropping in the region. The European Union's statistics office Eurostat said retail sales in the 17 countries using the euro fell 1.0 percent month-on-month in March for a 1.7 percent year-on-year drop. Eurostat said the biggest monthly decline in retail sales in the euro zone was in Portugal. The euro rose above $1.49 against the US dollar, its highest level since 17 months, and traders expect an imminent break of $1.50. The ECB, is expected to signal later today that it will increase interest rates in the coming months to keep a cap on inflation, which is why the euro has been so strong of late.
In the USA, the US dollar index fell to a new three-year low after an industry report showed that the pace of growth in US services unexpectedly fell in April. The US dollar index is a measure of the currency’s performance against a ‘basket’ of currencies - it has lost 7.7 percent so far in 2011. Weaker-than-expected U.S. employment data also saw investors increase bets that U.S. interest rates would remain low this year. In addition, the Japanese yen hit a six-week high against the dollar on the poor services sector activity. Call in now for a live exchange rate.
Elsewhere, the New Zealand dollar fell to a two-week low and dropped for a third consecutive day after data from New Zealand showed that permanent migrant departures exceeded arrivals by 530 in March. The currency fell 0.9% to US$0.7913 after touching 79.05, the lowest level since April 20. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro remained strong against the US dollar and sterling despite retail sales unexpectedly dropping in the region. The European Union's statistics office Eurostat said retail sales in the 17 countries using the euro fell 1.0 percent month-on-month in March for a 1.7 percent year-on-year drop. Eurostat said the biggest monthly decline in retail sales in the euro zone was in Portugal. The euro rose above $1.49 against the US dollar, its highest level since 17 months, and traders expect an imminent break of $1.50. The ECB, is expected to signal later today that it will increase interest rates in the coming months to keep a cap on inflation, which is why the euro has been so strong of late.
In the USA, the US dollar index fell to a new three-year low after an industry report showed that the pace of growth in US services unexpectedly fell in April. The US dollar index is a measure of the currency’s performance against a ‘basket’ of currencies - it has lost 7.7 percent so far in 2011. Weaker-than-expected U.S. employment data also saw investors increase bets that U.S. interest rates would remain low this year. In addition, the Japanese yen hit a six-week high against the dollar on the poor services sector activity. Call in now for a live exchange rate.
Elsewhere, the New Zealand dollar fell to a two-week low and dropped for a third consecutive day after data from New Zealand showed that permanent migrant departures exceeded arrivals by 530 in March. The currency fell 0.9% to US$0.7913 after touching 79.05, the lowest level since April 20. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 4 May 2011
Sterling plummeted against both the euro and US dollar yesterday after a weak reading of UK manufacturing data left investors pushing back expectations of an interest rate hike in the UK. Sterling hit the lowest level against the euro since March 2010, touching €1.1102/£1 this morning after the data was released. Weak UK growth has meant the Bank of England has resisted joining the European Central Bank in tightening monetary policy, and the diverging interest rates and outlooks has seen the euro gain by 5% against sterling since the beginning of the year. Sterling fell 1% against the US dollar, finishing nearly 3 cents away from the $1.67/ £1 that the pound hit last week. Out today there is construction figures which could further exacerbate yesterday’s fall – so call in to ensure you don’t miss out.
In the euro zone, the euro hit a 17 month high against the euro as a flat outlook for US monetary policy contrasted sharply with European interest rate expectations, with many analysts pricing in another 2 0.25% interest rate rises before the end of the year. Out today there is monthly retail sales figures for the euro zone, so ensure you are protected by speaking to one of the team sooner rather than later.
In the USA, the divergent rate expectations were also the story of the day as the prospect of indefinitely low interest rates in the country saw the currency drop to a fresh record low against the Swiss franc. The US dollar has now dropped 8% against major counterpart currencies in 2011, and is unlikely to stage a rally for some time until monetary policy catches up with Europe. In terms of data, we have a pre-cursor to Friday’s non farm payroll figures on the form of the ADP non farm numbers. Call in now as this can cause some volatility.
Elsewhere, the Australian dollar weakened as the central bank kept interest rates on hold at 4.75% and sounded a little less keen to raise rates in the coming months. The Canadian dollar saw strength after a crushing conservative victory in the election.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro hit a 17 month high against the euro as a flat outlook for US monetary policy contrasted sharply with European interest rate expectations, with many analysts pricing in another 2 0.25% interest rate rises before the end of the year. Out today there is monthly retail sales figures for the euro zone, so ensure you are protected by speaking to one of the team sooner rather than later.
In the USA, the divergent rate expectations were also the story of the day as the prospect of indefinitely low interest rates in the country saw the currency drop to a fresh record low against the Swiss franc. The US dollar has now dropped 8% against major counterpart currencies in 2011, and is unlikely to stage a rally for some time until monetary policy catches up with Europe. In terms of data, we have a pre-cursor to Friday’s non farm payroll figures on the form of the ADP non farm numbers. Call in now as this can cause some volatility.
Elsewhere, the Australian dollar weakened as the central bank kept interest rates on hold at 4.75% and sounded a little less keen to raise rates in the coming months. The Canadian dollar saw strength after a crushing conservative victory in the election.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 3 May 2011
Sterling fell against the euro on Friday and slipped off highs against the US dollar as thin trading related to the UK bank holiday triggered relatively large movements in the sterling exchange rate. Sterling had been over $1.67/£1 heading into the extended weekend, but news over Osama Bin Laden’s death triggered US dollar strength in the immediate aftermath of the announcement, but this has now faded. Key events this week in the UK include UK manufacturing, construction and services PMI and also this month’s Bank of England interest rate decision. Markets are pricing in a rate rise in November, but with sterling one of the least favoured currencies, this expectation could easily be pushed back towards next year. Either way, there is unlikely to be any surprises but call in now for a live exchange rate.
In the euro zone, the key piece of data set to drive exchange rate movements this week is the ECB’s interest rate decision and ‘post-match’ press conference. Since last month’s 0.25% hike, there has been no let up in further talk of interest rate hikes, so markets are expecting “vigilance” from ECB President Jean-Claude Trichet indicating that the ECB is still on track for an interest rate hike in July. The calls for Greek restructuring seem to have calmed down which will drop the perceived need of a Spanish and Italian bail out. Call in for a live price.
In the USA, US markets and the US dollar saw a boost on the news of Bin Laden’s death on Monday but this eased on the realisation that this would have no real effect on global stability and risks. The US dollar slipped to a 17 month low against the euro as lower than expected GDP figures on Friday left prospective US monetary policy lagging behind Europe. After the softer figures, key unemployment data will be closely watched later in the week for any further signs of the state of the US economy.
Elsewhere, the Canadian dollar gained against major counterparts after the Conservative party secured a significant majority in the election – beating the number of seats needed to convert their current minority government into a majority one by a significant margin. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the key piece of data set to drive exchange rate movements this week is the ECB’s interest rate decision and ‘post-match’ press conference. Since last month’s 0.25% hike, there has been no let up in further talk of interest rate hikes, so markets are expecting “vigilance” from ECB President Jean-Claude Trichet indicating that the ECB is still on track for an interest rate hike in July. The calls for Greek restructuring seem to have calmed down which will drop the perceived need of a Spanish and Italian bail out. Call in for a live price.
In the USA, US markets and the US dollar saw a boost on the news of Bin Laden’s death on Monday but this eased on the realisation that this would have no real effect on global stability and risks. The US dollar slipped to a 17 month low against the euro as lower than expected GDP figures on Friday left prospective US monetary policy lagging behind Europe. After the softer figures, key unemployment data will be closely watched later in the week for any further signs of the state of the US economy.
Elsewhere, the Canadian dollar gained against major counterparts after the Conservative party secured a significant majority in the election – beating the number of seats needed to convert their current minority government into a majority one by a significant margin. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
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