Sterling recovered against the euro yesterday after the Greek parliament approved a vital set of austerity measures that pave the way for further funds from the ECB and a widely anticipated second bailout. Sterling also made gains against the US dollar after a poll showed a jump in inflation expectations that boosted hopes of an earlier than anticipated interest rate hike in the UK. Currently markets expect that the Bank of England will wait until at least 2012, before touching rates. Out today, we have house price figures so call in now for a live exchange rate to avoid missing out.
In the euro zone, the big market moving news of the day was that Greece's parliament approved deeply unpopular austerity measures. Despite violent protests in Athens’ Syntagma Square, this vote paved the way for access to a key tranche of funds from the ECB and a further bail out. Parliament approved a 5 year package of cuts, tax increases and the sale of state assets. Whilst this is a step in the right direction, it is not anywhere close to sorting out the mess that Greece is in. Many expect that Greece will still default at some point and that debt restructuring is inevitable. Call in now for a live price.
In the USA, the euro strengthened against the US dollar as risk appetite saw investors reversing safe haven trades into US government bonds. As a result, the euro traded up 0.5%, hitting a high of $1.4447/ €1. In terms of data, yesterday saw a surprising boost from housing data with pending home sales rebounding from -11.3% to hit 8.3%. Out later today we have key unemployment claims figures so get in touch to avoid missing out.
Elsewhere, the Australian and New Zealand dollars gained against the majority of their counterparts as Greece approved its austerity plan. This saw a boost to risk appetite and a increase in demand for higher yielding assets. Both climbed by more than 1% against the US dollar.
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Thursday, 30 June 2011
Wednesday, 29 June 2011
Sterling fell against the euro yesterday, hitting an 8 week low, after Bank of England policymakers opened the door for further Quantitative Easing suggesting that the Bank is sticking to its guns on inflation forecasting which it has argued for some time will spike this year before falling off. This left investors even more convinced that interest rates will remain at record lows well into next year. Sterling also touched a 5 month low against the US dollar before closing the day barely above $1.60/£1. In addition, the UK’s 1st Quarter annual GDP was revised downwards to 1.6% from 1.8% which was a reminder of how slow the UK recovery is. Out today we have mortgage approval data and consumer confidence numbers so call in now for a live exchange rate.
In the euro zone, with markets in a holding pattern awaiting a key vote in Greek Parliament to approve austerity measures and pave the way for key funding, investors chose to focus on a press conference with ECB President Jean-Claude Trichet. Trichet stated that the bank is in “strong vigilance mode,” signalling that the ECB plans to increase interest rates in the region next week. As a result, the euro strengthened against both the US dollar and sterling which many will find baffling given the sheer state that Greek finances are in. The all important Greek vote takes place today and tomorrow, so call in now for a live exchange rate.
In the USA, house prices fell in the year end to April by the most in 17 months. The housing market is a major issue for the US recovery and today’s figures showing a 4% drop on the year, combined with poor consumer confidence figures paint a gloomy picture of the US recovery. Consumer spending dropped also and markets are braced for Thursday’s unemployment claims figures which could provide the nail in the coffin to a terrible week for data. Call in now for an exchange rate as this poor data actually drives demand for US dollars.
Elsewhere, the Swedish krona fell to a seven-month low against the euro after retail sales slumped. Data showed that the numbers fell by 1.1 % last month, and cemented the krona’s position as the worst performing G10 currency over the last month – beating sterling to the wooden spoon position.
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In the euro zone, with markets in a holding pattern awaiting a key vote in Greek Parliament to approve austerity measures and pave the way for key funding, investors chose to focus on a press conference with ECB President Jean-Claude Trichet. Trichet stated that the bank is in “strong vigilance mode,” signalling that the ECB plans to increase interest rates in the region next week. As a result, the euro strengthened against both the US dollar and sterling which many will find baffling given the sheer state that Greek finances are in. The all important Greek vote takes place today and tomorrow, so call in now for a live exchange rate.
In the USA, house prices fell in the year end to April by the most in 17 months. The housing market is a major issue for the US recovery and today’s figures showing a 4% drop on the year, combined with poor consumer confidence figures paint a gloomy picture of the US recovery. Consumer spending dropped also and markets are braced for Thursday’s unemployment claims figures which could provide the nail in the coffin to a terrible week for data. Call in now for an exchange rate as this poor data actually drives demand for US dollars.
Elsewhere, the Swedish krona fell to a seven-month low against the euro after retail sales slumped. Data showed that the numbers fell by 1.1 % last month, and cemented the krona’s position as the worst performing G10 currency over the last month – beating sterling to the wooden spoon position.
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Tuesday, 28 June 2011
Sterling fell to a 5 month low against the US dollar yesterday as concerns over the European debt crisis saw a spike in risk aversion and investors bought safe haven currencies. Sterling dropped as low as $1.5940/£1 as investors looked to park funds away from any perceived European exposure. Sterling also fell as a report showed that house prices fell for the second month in June, adding to concerns that the UK economic recovery stalled in the second quarter. Out today we have current account figures that will give an idea of the level of exporting/ importing the UK is currently undertaking and we also have the final figure for 1st quarter GDP, which could see some movement if it is amended from 0.5% so call in now to ensure you don’t lose out.
In the euro zone, the euro strengthened yesterday after a very volatile day’s trading. Swinging between gains and losses throughout the day, the single currency eventually strengthened on optimism that the Greek parliament will approve key austerity measures that are required to release funding from the ECB and IMF and avoid the euro zone’s first sovereign default. The vote is due later today, so expect wild volatility as the markets respond to headlines and live coverage of the vote. Call in now for a live exchange rate.
In the USA, stocks gained as regulators announced new rules to protect the global financial system. These included a requirement for banks deemed “too big to fail” to hold additional capital on reserve as part of efforts to avert another global financial crisis. Elsewhere, US consumer spending stalled last month posting the worst figure in a year. Out today there is consumer confidence data for the US, so call in now for a live exchange rate.
Elsewhere, the New Zealand dollar fell after a report showed the trade surplus narrowed in May by more than forecast. It dropped by 0.9% against the US dollar. New Zealand is a net exporter of goods and any drop in the level of goods/ services exported impacts on the country’s economic growth.
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In the euro zone, the euro strengthened yesterday after a very volatile day’s trading. Swinging between gains and losses throughout the day, the single currency eventually strengthened on optimism that the Greek parliament will approve key austerity measures that are required to release funding from the ECB and IMF and avoid the euro zone’s first sovereign default. The vote is due later today, so expect wild volatility as the markets respond to headlines and live coverage of the vote. Call in now for a live exchange rate.
In the USA, stocks gained as regulators announced new rules to protect the global financial system. These included a requirement for banks deemed “too big to fail” to hold additional capital on reserve as part of efforts to avert another global financial crisis. Elsewhere, US consumer spending stalled last month posting the worst figure in a year. Out today there is consumer confidence data for the US, so call in now for a live exchange rate.
Elsewhere, the New Zealand dollar fell after a report showed the trade surplus narrowed in May by more than forecast. It dropped by 0.9% against the US dollar. New Zealand is a net exporter of goods and any drop in the level of goods/ services exported impacts on the country’s economic growth.
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Monday, 27 June 2011
Sterling fell below $1.60 against the US dollar for the first time since April 1 last week and fell below €1.12 against the euro as retail sales figures for the UK fell to the weakest level in a year. As expected, Bank of England policymakers voted 7-2 in favour of no change to policy and to call on further stimulus if UK growth continued to suffer – a move that attracted criticism over the weekend from the Bank of International Settlements over the weekend. The BIS warned that the UK’s ultra-loose monetary policy in the face of inflation at double its target risked creating financial distortions, misallocations and instability. On a more positive note, the ‘Lloyds business barometer’ showed a strong rebound in June and as a result the bank now expects a correlating improvement in UK economic activity in 3-4 months time. Elsewhere this week, we have an array of data so call in now for a live exchange rate to avoid losing out.
In the euro zone, the Greek crisis continues to dominate the headlines and drive market movement. Greek PM George Papandreou survived an important vote of confidence last week, paving the way for Parliament to enact the relevant austerity measures that are required before the country receives any further funding. This vote is due on Tuesday and will be the key focus this week. It will be a surprise if this does not go through, but expect some market volatility surrounding this event either way. Call in now to plan a currency strategy and avoid losing out.
In the USA, the US dollar continues to benefit from safe haven flows as investors look for the relative safety of US government bonds in order to reduce exposure to the European debt crisis. Demand for these bonds is so high that investors are essentially lending to the US government for free or even paying a fee to do so. We saw an interesting development over the weekend. Chinese Premier Wen Jiabao stated that China is ready to buy billions of European debt in order to prop up the single currency, which could in turn challenge the US dollar’s status as the world’s reserve currency. Out this week, we have key figures on US personal spending and income which will be under the spotlight. Call in now for a live exchange rate.
Elsewhere, the panic caused by the Greek crisis has driven demand for Japanese yen as a safe haven asset in a similar vein to the US dollar demand. It has now reached similar levels to when the Bank of Japan intervened following the recent earthquake. Expect no further strength from the yen as a result.
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In the euro zone, the Greek crisis continues to dominate the headlines and drive market movement. Greek PM George Papandreou survived an important vote of confidence last week, paving the way for Parliament to enact the relevant austerity measures that are required before the country receives any further funding. This vote is due on Tuesday and will be the key focus this week. It will be a surprise if this does not go through, but expect some market volatility surrounding this event either way. Call in now to plan a currency strategy and avoid losing out.
In the USA, the US dollar continues to benefit from safe haven flows as investors look for the relative safety of US government bonds in order to reduce exposure to the European debt crisis. Demand for these bonds is so high that investors are essentially lending to the US government for free or even paying a fee to do so. We saw an interesting development over the weekend. Chinese Premier Wen Jiabao stated that China is ready to buy billions of European debt in order to prop up the single currency, which could in turn challenge the US dollar’s status as the world’s reserve currency. Out this week, we have key figures on US personal spending and income which will be under the spotlight. Call in now for a live exchange rate.
Elsewhere, the panic caused by the Greek crisis has driven demand for Japanese yen as a safe haven asset in a similar vein to the US dollar demand. It has now reached similar levels to when the Bank of Japan intervened following the recent earthquake. Expect no further strength from the yen as a result.
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Friday, 24 June 2011
Sterling fell below $1.60 against the US dollar for the first time since April 1 and fell below €1.12 against the euro as retail sales figures for the UK fell to the weakest level in a year. This was seen as justifying the Bank of England’s decision earlier in the month to keep interest rates steady and potentially increase stimulus via further Quantitative Easing if needed. In the minutes from the Bank’s meeting earlier in the week, policymakers voted 7-2 in favour of no change to policy and to call on further stimulus if UK growth continued to suffer. PM David Cameron yesterday said that he had received assurances that the UK will not be asked to contribute to a further Greek bailout. On a positive note, UK public sector net borrowing fell by 6% on last year, so at least the government’s plans are having an effect. Mervyn King speaks later today, which could see some movement if he gives any clues on future interest rate policy. Call in now for a live exchange rate.
In the euro zone, it has been a turbulent week for the region. We saw finance ministers delaying a key tranche of Greek bailout finance pending approval of austerity measures by the Greek parliament. Greek PM George Papandreou had to win a key confidence vote in order to pave the way to enacting tough austerity legislation and there was rioting on the streets of Athens. With Greece essentially bankrupt, there is an assumption that following the vote, a further bailout will be agreed. There is still significant volatility related to the euro exchange rate and bizarrely sterling is floundering against the euro due to interest rates. Call in now to plan a currency strategy and avoid losing out.
In the USA, the US dollar strengthened against most of its major counterparts this week as Federal Reserve Chairman Ben Bernanke said that the US recovery was progressing “more slowly” than expected. In the Fed’s interest rate policy meeting this week, policy makers decided to keep rates near zero and complete the $600bn second round programme of asset purchasing later this month. Figures showed that purchases of existing homes fell last month which also dented expectations of a recovery. Call in now for a live exchange rate.
Elsewhere, the panic caused by the Greek crisis dented ‘riskier’ based commodity linked currencies, as investors pulled out to safer haven assets. On Thursday, the South African rand declined the most in more than a month against the US dollar as investors sold riskier assets. The Australian dollar slipped also as the central bank signalled there was no scope for monetary tightening at the moment.
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In the euro zone, it has been a turbulent week for the region. We saw finance ministers delaying a key tranche of Greek bailout finance pending approval of austerity measures by the Greek parliament. Greek PM George Papandreou had to win a key confidence vote in order to pave the way to enacting tough austerity legislation and there was rioting on the streets of Athens. With Greece essentially bankrupt, there is an assumption that following the vote, a further bailout will be agreed. There is still significant volatility related to the euro exchange rate and bizarrely sterling is floundering against the euro due to interest rates. Call in now to plan a currency strategy and avoid losing out.
In the USA, the US dollar strengthened against most of its major counterparts this week as Federal Reserve Chairman Ben Bernanke said that the US recovery was progressing “more slowly” than expected. In the Fed’s interest rate policy meeting this week, policy makers decided to keep rates near zero and complete the $600bn second round programme of asset purchasing later this month. Figures showed that purchases of existing homes fell last month which also dented expectations of a recovery. Call in now for a live exchange rate.
Elsewhere, the panic caused by the Greek crisis dented ‘riskier’ based commodity linked currencies, as investors pulled out to safer haven assets. On Thursday, the South African rand declined the most in more than a month against the US dollar as investors sold riskier assets. The Australian dollar slipped also as the central bank signalled there was no scope for monetary tightening at the moment.
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Thursday, 23 June 2011
Sterling fell against the euro yesterday, dropping below €1.12/£1 as the Bank of England minutes raised the possibility of further Quantitative Easing. The Bank kept interest rates on hold at 0.5% and felt that the growth outlook for the UK had weakened, raising the prospect of another round of stimulus in the same vein as the Federal Reserve’s recent “QE2”. As expected, the latest member of the committee (who took over from Andrew Sentance) decided not to follow his predecessor in voting for a rate hike and stuck with the crowd in voting for no change. Sterling’s prospects are closely linked to growth, with the Bank unlikely to increase rates until it has seen significant growth.. Sterling is likely to flounder against the euro – especially if the ECB presses ahead with its planned 0.25% interest rate hike next month. Call in now for a live exchange rate.
In the euro zone, following last night’s vote of confidence in Greece, there were the beginnings of a sense that the relevant austerity measures will be passed and Greece will receive funding from the ECB. However, the uncertainty over Greece has prompted markets to speculate that the ECB may not follow through with the planned 0.5% rate hike in July. The euro began to slip against the US dollar later in the day as the impact of the Greek government surviving a confidence vote waned and some investors switched focus to the U.S. Federal Reserve. Out today we have a wide array of PMI data so call in for a live rate.
In the USA, the dollar dropped against a majority of its most-traded counterparts on speculation that the Federal Reserve would maintain monetary stimulus without buying more debt as economic growth remains sluggish. In the end, the Fed confirmed that it would make no change to its baseline interest rate and that the US recovery was continuing at a moderate pace. The central bank’s second round of quantitative easing, the purchase of $600 billion of Treasuries, is scheduled to end this month.
Elsewhere, the Canadian dollar dropped against most of its major counterparts on concern that slowing US growth will prompt the Federal Reserve to emphasise the need to maintain stimulus in the US. As Canada’s largest trading partner, a weak US recovery is not good for Canadian exports.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, following last night’s vote of confidence in Greece, there were the beginnings of a sense that the relevant austerity measures will be passed and Greece will receive funding from the ECB. However, the uncertainty over Greece has prompted markets to speculate that the ECB may not follow through with the planned 0.5% rate hike in July. The euro began to slip against the US dollar later in the day as the impact of the Greek government surviving a confidence vote waned and some investors switched focus to the U.S. Federal Reserve. Out today we have a wide array of PMI data so call in for a live rate.
In the USA, the dollar dropped against a majority of its most-traded counterparts on speculation that the Federal Reserve would maintain monetary stimulus without buying more debt as economic growth remains sluggish. In the end, the Fed confirmed that it would make no change to its baseline interest rate and that the US recovery was continuing at a moderate pace. The central bank’s second round of quantitative easing, the purchase of $600 billion of Treasuries, is scheduled to end this month.
Elsewhere, the Canadian dollar dropped against most of its major counterparts on concern that slowing US growth will prompt the Federal Reserve to emphasise the need to maintain stimulus in the US. As Canada’s largest trading partner, a weak US recovery is not good for Canadian exports.
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Wednesday, 22 June 2011
Sterling dropped sharply against the euro yesterday after key Bank of England policymaker Paul Fisher signalled that the UK could be in for further Quantitative Easing if deflationary pressures mount. With recent UK data underperforming, analysts have pushed back expectations of an interest rate hike in the UK well into next year. Earlier in the year, markets had been anticipating an interest rate rise as early as April 2011, so this rather dovish assessment by Fisher is not necessarily a surprise. The Bank of England’s minutes from this month’s meeting are released today and they are expected to show a continually loose monetary stance from the Bank of England. Ensure you protect any future payments in case sterling drops much further.
In the euro zone, after a turbulent day on Monday, the euro held on to slim gains against other currencies as investors bet that a rescue plan would be put together to prevent Greece from defaulting on its debt. However, there was a major hurdle in the form of a confidence vote in the Greek Parliament. PM George Papandreou had to win the vote in order to pave the way to enacting tough austerity legislation. The vote did in fact see the PM win the vote of confidence and investors took profits from the relative strength of the euro. Call in now for a live exchange rate.
In the USA, the US dollar had a subdued day for the most part yesterday as a recent run of poor economic data left investors expecting the worst ahead of the Federal Reserve’s policy meeting. Data released yesterday showed that purchases of existing homes fell last month and the poor performance of the housing market is one reason why many expected the Fed to maintain monetary stimulus or even increase it. The Fed’s statement is due later today, and most are not expecting any US dollar strength as a result.
Elsewhere, the Australian dollar fell yesterday after the minutes of the Reserve Bank of Australia's June meeting showed the bank thinks recent data has not added any urgency to the need for monetary tightening. Get in touch 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, after a turbulent day on Monday, the euro held on to slim gains against other currencies as investors bet that a rescue plan would be put together to prevent Greece from defaulting on its debt. However, there was a major hurdle in the form of a confidence vote in the Greek Parliament. PM George Papandreou had to win the vote in order to pave the way to enacting tough austerity legislation. The vote did in fact see the PM win the vote of confidence and investors took profits from the relative strength of the euro. Call in now for a live exchange rate.
In the USA, the US dollar had a subdued day for the most part yesterday as a recent run of poor economic data left investors expecting the worst ahead of the Federal Reserve’s policy meeting. Data released yesterday showed that purchases of existing homes fell last month and the poor performance of the housing market is one reason why many expected the Fed to maintain monetary stimulus or even increase it. The Fed’s statement is due later today, and most are not expecting any US dollar strength as a result.
Elsewhere, the Australian dollar fell yesterday after the minutes of the Reserve Bank of Australia's June meeting showed the bank thinks recent data has not added any urgency to the need for monetary tightening. Get in touch now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 21 June 2011
Sterling slipped against the US dollar as investor sentiment plunged as European governments failed to agree on releasing a loan payment to Greece. However, sterling did recover later in the day after comments from a top euro zone policy maker helped calm immediate fears over stability in the region. Financial markets were very nervous on Monday morning, with many market participants heading back to their desks to a number of downbeat reports over Greece – including one from Mayor Boris Johnson, who suggested in The Telegraph that the best thing would be for Greece to leave the euro. However, the panic has calmed to an extent, and focus in the UK shifts to public borrowing figures – released later today.
In the euro zone, it was a roller coaster day yesterday. News came through in the morning that euro zone finance ministers had delayed a decision on paying €12 billion worth of emergency loans to Greece, stating that Athens would first have to introduce austerity measures. The issue is that the Greek public do not seem to want the austerity measures. If the funds are not paid, Greece will default on a key repayment in mid-July. The next key test is for the Prime Minister George Papandreou, who faces a vote of confidence today in Parliament. If he loses this, the chances of the tough austerity measures being passed are slim. We are likely to continue to see significant euro volatility, so call in now for a live exchange rate.
In the USA, stock markets suffered on Monday as investors were hesitant to buy riskier assets after a decision was delayed on emergency loans to Greece and Moody's said it may downgrade Italy's credit rating. The US dollar gained against a basket of major currencies. However, comments from the chief of the European Financial Stability Facility saw the euro recover, as the chief of the fund stated that its guarantees would be raised to €780bn. Call in now for a live exchange rate.
Elsewhere the Swiss franc strengthened against its 16 major peers as investors scrambled for safe haven currencies. The Australian dollar fell versus all of its most-actively traded counterparts, losing 0.5 percent against the US currency for similar reasons.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, it was a roller coaster day yesterday. News came through in the morning that euro zone finance ministers had delayed a decision on paying €12 billion worth of emergency loans to Greece, stating that Athens would first have to introduce austerity measures. The issue is that the Greek public do not seem to want the austerity measures. If the funds are not paid, Greece will default on a key repayment in mid-July. The next key test is for the Prime Minister George Papandreou, who faces a vote of confidence today in Parliament. If he loses this, the chances of the tough austerity measures being passed are slim. We are likely to continue to see significant euro volatility, so call in now for a live exchange rate.
In the USA, stock markets suffered on Monday as investors were hesitant to buy riskier assets after a decision was delayed on emergency loans to Greece and Moody's said it may downgrade Italy's credit rating. The US dollar gained against a basket of major currencies. However, comments from the chief of the European Financial Stability Facility saw the euro recover, as the chief of the fund stated that its guarantees would be raised to €780bn. Call in now for a live exchange rate.
Elsewhere the Swiss franc strengthened against its 16 major peers as investors scrambled for safe haven currencies. The Australian dollar fell versus all of its most-actively traded counterparts, losing 0.5 percent against the US currency for similar reasons.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 20 June 2011
Sterling had a subdued end to the week following weaker than expected retail sales figures and the “dovish” (i.e. not keen to tighten monetary policy) stance of Bank of England governor Mervyn King at a key speech last week. With no key data released today, markets are likely to focus on the ongoing Greek debt crisis which has taken further turns over the weekend – most notably the deferral of payment of €12bn in emergency loans and still no decision regarding a new bail out. In terms of data in the UK this week, we have the MPC minutes on Wednesday and public finance figures tomorrow. Whilst the Bank minutes have the potential to cause volatility, they are likely to show that the bank has no desire to change monetary policy currently.
In the euro zone, Greece is most definitely the word on everyone’s lips this morning. Finance ministers yet again failed to reach agreement on a new package for Greece and withheld the next tranche of loan payments until Athens follows through with tough austerity measures. The problem is that the Greek public doesn’t want to change – several days of riots in Athens are testament to that. PM George Papandreou effectively pleaded to Parliament to support the austerity measures or face certain bankruptcy as Greece defaults on loan repayments in July, but various populist and socialist factions seem unwilling to support him. Meanwhile, analysis from the CEBR will today show that the euro is likely to break up within 5 years… Call in now for a live exchange rate.
In the USA, it is an important week for USA with the next Federal Reserve meeting on Wednesday. The Fed’s second round of Quantitative Easing comes to an end soon, and markets are expecting the Fed to maintain interest rates near zero for an extended period, but if the central bank embarks on another round of QE, this will trigger US dollar selling and actually help support the euro. Get in touch to avoid losing out.
Elsewhere, Russian President Dimitry Medvedev stated that Russia’s economic growth could be comparable to that of China and Brazil if it sorts out its problems. He forecast 4.5% growth for the economy this year.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, Greece is most definitely the word on everyone’s lips this morning. Finance ministers yet again failed to reach agreement on a new package for Greece and withheld the next tranche of loan payments until Athens follows through with tough austerity measures. The problem is that the Greek public doesn’t want to change – several days of riots in Athens are testament to that. PM George Papandreou effectively pleaded to Parliament to support the austerity measures or face certain bankruptcy as Greece defaults on loan repayments in July, but various populist and socialist factions seem unwilling to support him. Meanwhile, analysis from the CEBR will today show that the euro is likely to break up within 5 years… Call in now for a live exchange rate.
In the USA, it is an important week for USA with the next Federal Reserve meeting on Wednesday. The Fed’s second round of Quantitative Easing comes to an end soon, and markets are expecting the Fed to maintain interest rates near zero for an extended period, but if the central bank embarks on another round of QE, this will trigger US dollar selling and actually help support the euro. Get in touch to avoid losing out.
Elsewhere, Russian President Dimitry Medvedev stated that Russia’s economic growth could be comparable to that of China and Brazil if it sorts out its problems. He forecast 4.5% growth for the economy this year.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Friday, 17 June 2011
Sterling fell against the US dollar on Thursday after figures were released that showed UK retail sales fell by more than expected, adding further weight to calls for the Bank of England to keep interest rates on hold. Higher fuel costs and ongoing uncertainty over employment prospects kept consumer spending in check. Data showed a 1.4% drop in sales since April – beating estimates of a 0.6% drop. However, April’s figures could have been much higher than normal due to ‘Royal Wedding Fever’ and the numerous bank holidays. Sterling did however jump against the euro, hitting €1.1460/£1 briefly as European officials failed to reassure investors that they were close to a second bail out of Greece.
In the euro zone, the euro plummeted yesterday hitting a record low against the Swiss franc and a three week low against the US dollar as investors fled to safe-haven assets on mounting concerns Greece's problems are far from resolution. In a week that saw Greece’s credit rating cut to CCC – near junk status – Greek and Portuguese bond yields climbed to record highs. It has also been a week of disagreement between Germany and the European Central Bank over the best way to deal with the Greek crisis, which has also added to the euro’s demise. It has dropped by 4.2% since June 7th. There is no real data out today, but call in to take advantage of any volatility.
The US dollar strengthened against most currencies on Thursday as risk aversion related to the Greek crisis saw investors scrambling towards safer assets. Data also showed that US housing figures and jobless benefits claims beat expectations. This helped ease concerns to a slight extent, but it was a secondary issue to the issues in Greece. The US dollar has strengthened by nearly 2% against the euro this week, and with no end to the Greek crisis in sight, we could see it run even further.
Elsewhere, Brazil’s central bank said it will continue with its strategy of raising interest rates for a “sufficiently long” period even as the country’s inflation outlook shows signs of improving. Commodity based currencies dropped off the back of a pull back in risk appetite, but recovered towards the end of trading as volatility calmed down. 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 plummeted yesterday hitting a record low against the Swiss franc and a three week low against the US dollar as investors fled to safe-haven assets on mounting concerns Greece's problems are far from resolution. In a week that saw Greece’s credit rating cut to CCC – near junk status – Greek and Portuguese bond yields climbed to record highs. It has also been a week of disagreement between Germany and the European Central Bank over the best way to deal with the Greek crisis, which has also added to the euro’s demise. It has dropped by 4.2% since June 7th. There is no real data out today, but call in to take advantage of any volatility.
The US dollar strengthened against most currencies on Thursday as risk aversion related to the Greek crisis saw investors scrambling towards safer assets. Data also showed that US housing figures and jobless benefits claims beat expectations. This helped ease concerns to a slight extent, but it was a secondary issue to the issues in Greece. The US dollar has strengthened by nearly 2% against the euro this week, and with no end to the Greek crisis in sight, we could see it run even further.
Elsewhere, Brazil’s central bank said it will continue with its strategy of raising interest rates for a “sufficiently long” period even as the country’s inflation outlook shows signs of improving. Commodity based currencies dropped off the back of a pull back in risk appetite, but recovered towards the end of trading as volatility calmed down. Call in now for a live exchange rate.
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Thursday, 16 June 2011
Sterling fell to a three week low against the US dollar yesterday, as investors bought into safe-haven currencies. Furthermore, poor UK data saw confidence drop in the UK recovery that left sterling vulnerable to more losses in the near term. Figures showed that the number of those claiming unemployment benefit rose sharply, jumping to 19,600 against an expectation of 7,000 and the biggest jump since July 2009. Earnings growth also slipped that added to the view that UK interest rates would stay on hold into 2012. Sterling did gain against the euro as Greek related market turmoil continued to impact on the single currency. Out today we have retail sales figures that are expected to show a decline from the previous month so call in now for a live exchange rate to avoid losing out.
In the euro zone, the euro had the worst day in a month, hitting a 2 ½ week low against the US dollar as investors panicked about Greece's debt crisis and its potential impact. Ongoing disagreement over a new bailout plan also caused concern for investors as an FT report stated that the German inspired bailout plan could require European governments to provide an extra €20bn. Analysts also stated that a Greek national strike against austerity measures was also keeping the euro lower as it highlighted the country's outrage against efforts to reign in its debts.
In the USA, a report showed that US inflation rose more than expected in May to hit the largest increase in three years which helped strengthen the dollar. However, European events continued to dominate market sentiment and there was poor data on manufacturing, industrial production and homebuilder confidence which exacerbated concerns that the economy is shrinking. Out today we have US unemployment claims so call in now to ensure you don’t lose out.
Elsewhere, the Australian dollar strengthened as the Reserve Bank of Australia governor said an increase in interest rates is still needed to restrain inflation. In addition, the Canadian dollar hit the highest level against the euro in 3 weeks following the issues in the euro zone. However, it dropped against the US dollar following data that showed a disruption to manufacturing following the Japanese earthquake/ tsunami.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro had the worst day in a month, hitting a 2 ½ week low against the US dollar as investors panicked about Greece's debt crisis and its potential impact. Ongoing disagreement over a new bailout plan also caused concern for investors as an FT report stated that the German inspired bailout plan could require European governments to provide an extra €20bn. Analysts also stated that a Greek national strike against austerity measures was also keeping the euro lower as it highlighted the country's outrage against efforts to reign in its debts.
In the USA, a report showed that US inflation rose more than expected in May to hit the largest increase in three years which helped strengthen the dollar. However, European events continued to dominate market sentiment and there was poor data on manufacturing, industrial production and homebuilder confidence which exacerbated concerns that the economy is shrinking. Out today we have US unemployment claims so call in now to ensure you don’t lose out.
Elsewhere, the Australian dollar strengthened as the Reserve Bank of Australia governor said an increase in interest rates is still needed to restrain inflation. In addition, the Canadian dollar hit the highest level against the euro in 3 weeks following the issues in the euro zone. However, it dropped against the US dollar following data that showed a disruption to manufacturing following the Japanese earthquake/ tsunami.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 15 June 2011
Sterling strengthened against a weak US dollar as UK inflation held steady at 4.5% year-on-year in May. Despite holding at a 2 1/2-year high and staying significantly higher than the Bank of England's 2% target, analysts felt that the data left the UK no nearer to an interest rate hike than before, with the Bank of England having repeatedly warned that inflation could hit 5% before retreating. Sterling hovered around the $1.6400/£1 mark yesterday, having gained nearly 4.5% against the US dollar this year. In terms of data today, we have the UK unemployment claimant count change released later which could see some exchange rate volatility so call in now for a live rate.
In the euro zone, the euro and commodity based currencies rose yesterday, boosted by improved risk appetite after Chinese data eased global growth concerns. The single currency hit a high of $1.4487/€1 against the US dollar – up 0.4% for the day. This came despite the debate still raging over how to bail out Greece again, with Germany and the ECB disagreeing over the level of private involvement with Germany arguing that private creditors should share some of the cost. Greek bond yields touched nearly 17.5% - a record – which gives you some idea of the level of uncertainty surrounding the country.
In the USA, the US dollar gained against the yen and pared losses against most other currencies yesterday after US wholesale price inflation data beat expectations. However, retail sales in May fell for the first time in 11 months, dragged down by a sharp drop in receipts from auto dealerships, though the decline was less than expected. In terms of data, we have consumer price inflation, so call in to ensure you don’t lose out.
Elsewhere, the high-yielding Australian dollar gained 0.8% against the US dollar after a report showed Chinese inflation surged to its highest in 34 months. Chinese industrial output for May also beat expectations, coming in at 13.3%. This saw the price of raw materials increase, and as such commodity linked currencies such as the Canadian and Australian dollar all gained as risk appetite surged.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro and commodity based currencies rose yesterday, boosted by improved risk appetite after Chinese data eased global growth concerns. The single currency hit a high of $1.4487/€1 against the US dollar – up 0.4% for the day. This came despite the debate still raging over how to bail out Greece again, with Germany and the ECB disagreeing over the level of private involvement with Germany arguing that private creditors should share some of the cost. Greek bond yields touched nearly 17.5% - a record – which gives you some idea of the level of uncertainty surrounding the country.
In the USA, the US dollar gained against the yen and pared losses against most other currencies yesterday after US wholesale price inflation data beat expectations. However, retail sales in May fell for the first time in 11 months, dragged down by a sharp drop in receipts from auto dealerships, though the decline was less than expected. In terms of data, we have consumer price inflation, so call in to ensure you don’t lose out.
Elsewhere, the high-yielding Australian dollar gained 0.8% against the US dollar after a report showed Chinese inflation surged to its highest in 34 months. Chinese industrial output for May also beat expectations, coming in at 13.3%. This saw the price of raw materials increase, and as such commodity linked currencies such as the Canadian and Australian dollar all gained as risk appetite surged.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 14 June 2011
Sterling hit its strongest level in more than a week against the euro on Monday, helped by concerns over euro zone debt and investors speculating over data released today that is expected to show higher than anticipated UK inflation. Against the US dollar, sterling also gained hitting a high of $1.6340/£1 – shaking off poor figures on Friday that showed a sharp drop in industrial output that saw the pound hit a two week low against the US currency. The big piece of data this week is released later today in the form of inflation figures, which are expected to creep even higher.
In the euro zone, the euro fell to a record low against the safe haven Swiss franc as investor worries over the handling of the Greek debt crisis saw a flight to the safety of the Swiss currency. European policymakers are deadlocked on how to involve private investors in some form of debt restructuring. The ECB is at loggerheads with German proposals for a bond swap that it argues could cause market turmoil. It is a quiet day for data, but the turmoil over Greece is more than likely to cause significant volatility so call in now for a live exchange rate.
In the USA, uncertainty over future US monetary policy added to yesterday’s sentiment of risk aversion as Fed Chairman Ben Bernanke has remained tight lipped over the next step for the economy after the Fed’s $600-billion bond buying programme ends this month. The US dollar fell against most of its major counterparts yesterday ahead of data today that is expected to show that retail sales fell in May. Call in now for a live exchange rate.
Elsewhere, the New Zealand dollar fell after Christchurch was struck by aftershocks of the February earthquake. The kiwi slumped 1.1% against the US dollar and declined against sterling. In addition, the South African rand strengthened for the first time in four days against the dollar as exporters repatriated foreign earnings on expectations price swings in the South African currency will lessen in coming weeks.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro fell to a record low against the safe haven Swiss franc as investor worries over the handling of the Greek debt crisis saw a flight to the safety of the Swiss currency. European policymakers are deadlocked on how to involve private investors in some form of debt restructuring. The ECB is at loggerheads with German proposals for a bond swap that it argues could cause market turmoil. It is a quiet day for data, but the turmoil over Greece is more than likely to cause significant volatility so call in now for a live exchange rate.
In the USA, uncertainty over future US monetary policy added to yesterday’s sentiment of risk aversion as Fed Chairman Ben Bernanke has remained tight lipped over the next step for the economy after the Fed’s $600-billion bond buying programme ends this month. The US dollar fell against most of its major counterparts yesterday ahead of data today that is expected to show that retail sales fell in May. Call in now for a live exchange rate.
Elsewhere, the New Zealand dollar fell after Christchurch was struck by aftershocks of the February earthquake. The kiwi slumped 1.1% against the US dollar and declined against sterling. In addition, the South African rand strengthened for the first time in four days against the dollar as exporters repatriated foreign earnings on expectations price swings in the South African currency will lessen in coming weeks.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 13 June 2011
Sterling fell to a 2 week low against the US dollar on Friday, hurt by figures that showed that UK industrial output contracted by 1.7% in April as a result of the extra bank holiday in April. However, with concerns over the Greek debt crisis looming yet again, sterling strengthened against the euro and is trading above €1.13/ £1 this morning. UK interest rates are still expected to remain on hold until at least the beginning of next year. It is a relatively quiet day today, but it will be interesting to hear the thoughts of Bank of England policymaker Martin Weale who has been advocating a 0.25% hike for some time. He speaks later today. In terms of data for the rest of the week, there is UK inflation data out tomorrow, unemployment figures on Wednesday and retail sales figures on Friday. Call in now for a live exchange rate to ensure that you don’t lose out due to market volatility.
In the euro zone, the euro strengthened briefly against the US dollar this morning after some “short-covering” – i.e. traders buying back euros to protect against bets that the currency will move down. However, the trend is very much downwards for the single currency as European policymakers are still no closer to agreeing a framework for a financial aid package to Greece. Despite signalling an interest rate hike next month, the ECB kept inflation forecasts on hold which saw investors cut interest rate expectations past July. Out this week we have a range of industrial production figures, none of which are expected to be market movers. Call in now for a live exchange rate.
In the USA, markets have started to follow a risk averse pattern of trading in the last few days. The euro zone debt crisis, and concerns over global growth have seen investors moving funds into US government bonds just 2 weeks ahead of the end of the US Federal Reserve’s second round of asset purchase funding. There have been no hints as to whether a third round of funding will follow, and with poor recent data, investors are expecting the worst. Call in now for a live exchange rate.
Elsewhere, another earthquake in New Zealand overnight has seen sterling jump against the NZ dollar by over 1%. The quake-prone city of Christchurch is set to experience further aftershocks over the coming days. Damage caused is set to see interest rates stay on hold for longer as the second earthquake hampers efforts to rebuild following September’s earthquake. 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 strengthened briefly against the US dollar this morning after some “short-covering” – i.e. traders buying back euros to protect against bets that the currency will move down. However, the trend is very much downwards for the single currency as European policymakers are still no closer to agreeing a framework for a financial aid package to Greece. Despite signalling an interest rate hike next month, the ECB kept inflation forecasts on hold which saw investors cut interest rate expectations past July. Out this week we have a range of industrial production figures, none of which are expected to be market movers. Call in now for a live exchange rate.
In the USA, markets have started to follow a risk averse pattern of trading in the last few days. The euro zone debt crisis, and concerns over global growth have seen investors moving funds into US government bonds just 2 weeks ahead of the end of the US Federal Reserve’s second round of asset purchase funding. There have been no hints as to whether a third round of funding will follow, and with poor recent data, investors are expecting the worst. Call in now for a live exchange rate.
Elsewhere, another earthquake in New Zealand overnight has seen sterling jump against the NZ dollar by over 1%. The quake-prone city of Christchurch is set to experience further aftershocks over the coming days. Damage caused is set to see interest rates stay on hold for longer as the second earthquake hampers efforts to rebuild following September’s earthquake. 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/
Friday, 10 June 2011
Sterling recovered from a one month low against the euro as investors took profits in the euro as the ECB signalled that it would raise interest rates next month as had widely been expected. The Bank of England meeting also went as expected, with the MPC voting to maintain interest rates at the record low of 0.5%. Earlier in the week, sterling had come under pressure as the IMF said that the UK’s AAA credit rating was under threat, stating that further quantitative easing could be needed if growth continued to suffer.There was slightly less pressure on the MPC to amend policy after poor factory and services activity data last week and the general UK slowdown. Markets have in recent months scaled back their expectations of an interest rate hike to early 2012 in the UK, and as such, little changed that outlook yesterday. In terms of data, there is key manufacturing and producer inflation data out today, so call in now for a live exchange rate.
In the euro zone ECB meeting - as expected - ECB President Jean-Claude Trichet stated that the committee would use “strong vigilance” with regards to inflationary pressures – a phrase that many take to mean that there will be an interest rate hike of 0.25% next month. However, the euro slipped against both the US dollar and sterling as President Trichet stated that there were “risks and elevated uncertainty” for the future, and as investors booked in profits from trades backing the euro ahead of the ECB meeting. Out later today there is European inflation figures and industrial production data, so call in now for a live exchange rate.
In the USA, the US dollar strengthened against the euro as Jean-Claude Trichet scaled back the possibility of further interest rate tightening beyond next month. In addition, US unemployment figures also unexpectedly jumped, which saw risk appetite fall marginally and saw euro losses pull back slightly. Earlier in the week, the US dollar fell to a record low against the Swiss franc as Chinese policymakers warned against investing too heavily in US dollar denominated assets. It is a quiet day today, so call in now for a live exchange rate to ensure you don’t lose out.
Elsewhere, Japan’s 1st Quarter GDP shrank by 0.9% against the 4th Quarter 2010 figures demonstrating the impact of the recent earthquake and tsunami. The New Zealand dollar strengthened overnight after the Reserve Bank of New Zealand said that interest rates would need to rise over the next few years to contain rising inflation. Earlier in the week, the Australian central bank kept interest rates on hold and gave no hints about any further monetary tightening.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone ECB meeting - as expected - ECB President Jean-Claude Trichet stated that the committee would use “strong vigilance” with regards to inflationary pressures – a phrase that many take to mean that there will be an interest rate hike of 0.25% next month. However, the euro slipped against both the US dollar and sterling as President Trichet stated that there were “risks and elevated uncertainty” for the future, and as investors booked in profits from trades backing the euro ahead of the ECB meeting. Out later today there is European inflation figures and industrial production data, so call in now for a live exchange rate.
In the USA, the US dollar strengthened against the euro as Jean-Claude Trichet scaled back the possibility of further interest rate tightening beyond next month. In addition, US unemployment figures also unexpectedly jumped, which saw risk appetite fall marginally and saw euro losses pull back slightly. Earlier in the week, the US dollar fell to a record low against the Swiss franc as Chinese policymakers warned against investing too heavily in US dollar denominated assets. It is a quiet day today, so call in now for a live exchange rate to ensure you don’t lose out.
Elsewhere, Japan’s 1st Quarter GDP shrank by 0.9% against the 4th Quarter 2010 figures demonstrating the impact of the recent earthquake and tsunami. The New Zealand dollar strengthened overnight after the Reserve Bank of New Zealand said that interest rates would need to rise over the next few years to contain rising inflation. Earlier in the week, the Australian central bank kept interest rates on hold and gave no hints about any further monetary tightening.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 9 June 2011
Sterling recovered earlier losses against the euro and US dollar after investors played down earlier comments by rating agency Moody’s. The credit rating agency had earlier stated that the UK’s AAA credit rating would be at risk if the government failed to hit debt reduction targets amidst slowing growth. Figures from the British Retail Consortium also dented sterling, as a report showed that UK shop price inflation slowed in May to the slowest rate this year – decreasing the chances of an interest rate hike at today’s Bank of England meeting. The MPC is expected to keep rates on hold, but with the ECB meeting taking place as well we could see some volatility.
In the euro zone, data showed that German industrial production slipped for the first time in 4 months in April. However, this was generally overlooked by investors who are bracing themselves for today’s ECB interest rate decision. The central bank is expected to maintain interest rates at 1.25%, but signal “strong vigilance” i.e. a 0.25% rate hike next month. Watch out for the press conference afterwards, as this can cause a lot of volatility – call in now for a live exchange rate.
In the USA, the US dollar strengthened against most currencies on Wednesday as investors pulled back from riskier trades. The pull back was following comments from Fed Chairman Ben Bernanke who stated that the US recovery was “frustratingly slow”. This caused concern that a slumping US recovery could impact on global growth. It is a quiet day for data, but call in either way as we could see some movement.
Elsewhere, the commodity-sensitive Australian dollar dropped 0.8% against the US dollar to $1.0624, and the Canadian dollar fell 0.5% against the US currency on the fall off in risk appetite. In addition, Chile's central bank has likely ended its sweeping monetary tightening policy for the year, shifting instead to fewer and smaller rate hikes to further curb inflation without harming a vigorous economic recovery.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, data showed that German industrial production slipped for the first time in 4 months in April. However, this was generally overlooked by investors who are bracing themselves for today’s ECB interest rate decision. The central bank is expected to maintain interest rates at 1.25%, but signal “strong vigilance” i.e. a 0.25% rate hike next month. Watch out for the press conference afterwards, as this can cause a lot of volatility – call in now for a live exchange rate.
In the USA, the US dollar strengthened against most currencies on Wednesday as investors pulled back from riskier trades. The pull back was following comments from Fed Chairman Ben Bernanke who stated that the US recovery was “frustratingly slow”. This caused concern that a slumping US recovery could impact on global growth. It is a quiet day for data, but call in either way as we could see some movement.
Elsewhere, the commodity-sensitive Australian dollar dropped 0.8% against the US dollar to $1.0624, and the Canadian dollar fell 0.5% against the US currency on the fall off in risk appetite. In addition, Chile's central bank has likely ended its sweeping monetary tightening policy for the year, shifting instead to fewer and smaller rate hikes to further curb inflation without harming a vigorous economic recovery.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 8 June 2011
Sterling gained against a weaker US dollar but gains were capped and it slipped against the euro on soft UK data. Figures from the Halifax showed that house prices increased by only 0.1% last month and an unexpected drop in retail sales undermined the fragility of the UK economy. With the Bank of England’s monthly interest rate meeting on Thursday, this poor data only goes to support no change in monetary policy for another month as the MPC tries to avoid stifling UK growth despite rampant inflation. It is a quiet day for data today in the UK, so call in now for a live exchange rate.
In the euro zone, the euro hit a one-month high of $1.4682 against the US dollar, helped by more favourable German factory data, but also by a general US dollar sell-off. The euro also gained after a senior government official stated that the Greek government expects parliament to meet one of the conditions for receiving new international funding – namely voting through austerity measures to rein in spending. Against sterling, many investors are bracing for an interest rate hike in the euro zone in July which saw the euro gain. Out today, there is European GDP and German production data, so ensure you take advantage of any movements.
The US dollar hit a record low against the Swiss franc and fell against other currencies on Tuesday after a senior Chinese foreign exchange regulator warned about the risks of investing too heavily in dollar-denominated assets. The US dollar has fallen by nearly 11% against the Swiss franc this year. In addition, US monetary policy is expected to remain unchanged for some time - a view that was enhanced last week after data showed the U.S. economy added far fewer jobs than expected in May.
Elsewhere, the Australian dollar was flat after the Reserve Bank of Australia kept interest rates on hold and gave no hints of tightening in the immediate future. The NZ dollar however climbed nearly 1% against the US dollar to as investors bought ahead of a central bank rate decision on Thursday. The South African rand was the best performer against the US dollar, rising 1.1%, after reports showed the central bank’s foreign currency and gold reserves fell. The rand has gained 16% against the dollar in the past year.
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 one-month high of $1.4682 against the US dollar, helped by more favourable German factory data, but also by a general US dollar sell-off. The euro also gained after a senior government official stated that the Greek government expects parliament to meet one of the conditions for receiving new international funding – namely voting through austerity measures to rein in spending. Against sterling, many investors are bracing for an interest rate hike in the euro zone in July which saw the euro gain. Out today, there is European GDP and German production data, so ensure you take advantage of any movements.
The US dollar hit a record low against the Swiss franc and fell against other currencies on Tuesday after a senior Chinese foreign exchange regulator warned about the risks of investing too heavily in dollar-denominated assets. The US dollar has fallen by nearly 11% against the Swiss franc this year. In addition, US monetary policy is expected to remain unchanged for some time - a view that was enhanced last week after data showed the U.S. economy added far fewer jobs than expected in May.
Elsewhere, the Australian dollar was flat after the Reserve Bank of Australia kept interest rates on hold and gave no hints of tightening in the immediate future. The NZ dollar however climbed nearly 1% against the US dollar to as investors bought ahead of a central bank rate decision on Thursday. The South African rand was the best performer against the US dollar, rising 1.1%, after reports showed the central bank’s foreign currency and gold reserves fell. The rand has gained 16% against the dollar in the past year.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 7 June 2011
Sterling dropped to a fresh 1 month low yesterday against the euro, dipping below €1.1190/£1 as the euro zone shrugged off concerns over Greek debt and the IMF raised the prospect of further quantitative easing in the UK. Whilst the IMF backed the UK government’s plans to reduce the budget deficit on Monday, it said that tax cuts or more quantitative easing could be needed if growth proves persistently weak. The UK economy is likely to grow by around 1.5%in 2011 before achieving growth of about 2.5 percent in the medium term according to the IMF. There are a number of risks to this growth though, so ensure that you protect yourself by speaking to a currency specialist sooner rather than later.
In the euro zone, the euro hovered near a one-month high against the US dollar and sterling on Monday as investor sentiment towards Greece improved as policymakers edged closer to agreeing a new aid package – expected to be in the region of €100bn. In addition, as the focus moves away from Greece, investors have eyed this week’s ECB interest rate decision on Thursday in which the central bank is expected to signal another rate hike in July. There are retail sales figures released later on, so call in now for a live exchange rate.
In the USA, it was a relatively quiet day with investor focus falling elsewhere. However, the impact of Friday’s woeful Non-Farm payroll figures caused a bit of a stir, with the US dollar stuck near a one-month low against a basket of currencies on the view that US interest rates will stay low for longer. In addition, Philadelphia Fed Chairman Charles Plosser made his thoughts clear in a statement outlining that he expected US monetary policy to tighten towards the end of the year and that Friday’s figures made no impact on his view. Fed Chairman Ben Bernanke speaks later today.
Elsewhere, the Canadian dollar traded near a two-month low versus the US dollar after last week’s poor US data sparked concern that the recovery of Canada’s biggest trade partner is faltering. The Canadian currency fell for a second day, so call in now to take advantage of better prices.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro hovered near a one-month high against the US dollar and sterling on Monday as investor sentiment towards Greece improved as policymakers edged closer to agreeing a new aid package – expected to be in the region of €100bn. In addition, as the focus moves away from Greece, investors have eyed this week’s ECB interest rate decision on Thursday in which the central bank is expected to signal another rate hike in July. There are retail sales figures released later on, so call in now for a live exchange rate.
In the USA, it was a relatively quiet day with investor focus falling elsewhere. However, the impact of Friday’s woeful Non-Farm payroll figures caused a bit of a stir, with the US dollar stuck near a one-month low against a basket of currencies on the view that US interest rates will stay low for longer. In addition, Philadelphia Fed Chairman Charles Plosser made his thoughts clear in a statement outlining that he expected US monetary policy to tighten towards the end of the year and that Friday’s figures made no impact on his view. Fed Chairman Ben Bernanke speaks later today.
Elsewhere, the Canadian dollar traded near a two-month low versus the US dollar after last week’s poor US data sparked concern that the recovery of Canada’s biggest trade partner is faltering. The Canadian currency fell for a second day, so call in now to take advantage of better prices.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 6 June 2011
Sterling ended last week by falling to a 4 week low against the euro on optimism over a new bailout for Greece. Disappointing UK data provided further evidence that UK interest rates are likely to remain at record lows and this saw sterling drop – it starts the week hovering just above €1.12/£1. Against the US dollar, sterling should remain well supported above $1.60/£1 as it tracks euro strength against the US dollar. The key event for the UK this week is the Bank of England’s meeting on Thursday. There is unlikely to be any change to monetary policy – especially given last week’s poor PMI figures – and we will need to wait another two weeks before the minutes are released to see how the committee voted. Call in now for a live exchange rate.
In the euro zone, the euro remains close to a one month high against the US dollar and sterling after it was revealed that Greece is set to receive a vital tranche of aid in July to avoid a default and the country comes close to securing a new aid package. Despite there being no long term plan in place to deal with the euro zone crisis, the euro is expected to gain ahead of the ECB’s interest rate meeting on Thursday. Investors expect Jean-Claude Trichet to signal “strong vigilance” on interest rates – effectively clearing the way for a July hike.
In the USA, disappointing jobs data on Friday saw confidence in the US recovery dented even further. Non-Farm payrolls showed that the US economy added 54,000 jobs last month against an expectation of 150,000. The US S&P 500 stock market finished 2.3% lower, marking the 5th straight week of declines and closing 5% down from the high hit in mid-April. It is a relatively quiet week for data aside from statements from key policymakers, so ensure you speak to one of the team to avoid missing out.
Elsewhere, commodity currencies gained following the weakness in the US dollar with the Australian dollar hitting a 3 ½ week high, but it was still a way off the 29 year high that it hit in early May.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro remains close to a one month high against the US dollar and sterling after it was revealed that Greece is set to receive a vital tranche of aid in July to avoid a default and the country comes close to securing a new aid package. Despite there being no long term plan in place to deal with the euro zone crisis, the euro is expected to gain ahead of the ECB’s interest rate meeting on Thursday. Investors expect Jean-Claude Trichet to signal “strong vigilance” on interest rates – effectively clearing the way for a July hike.
In the USA, disappointing jobs data on Friday saw confidence in the US recovery dented even further. Non-Farm payrolls showed that the US economy added 54,000 jobs last month against an expectation of 150,000. The US S&P 500 stock market finished 2.3% lower, marking the 5th straight week of declines and closing 5% down from the high hit in mid-April. It is a relatively quiet week for data aside from statements from key policymakers, so ensure you speak to one of the team to avoid missing out.
Elsewhere, commodity currencies gained following the weakness in the US dollar with the Australian dollar hitting a 3 ½ week high, but it was still a way off the 29 year high that it hit in early May.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Friday, 3 June 2011
Sterling hit a two-week low versus the euro on Thursday, knocked by downbeat comments from a Bank of England policymaker which added weight to the view that domestic interest rates will stay on hold for some time. In addition, the euro gained support following positive comments from German Chancellor Angela Merkel. Sterling did make some ground towards the end of the week, gaining 0.4% against the US dollar to finish towards $1.6393, nearly a cent above an earlier one-week low of $1.6305 after better than expected construction activity data boosted demand for the pound despite poor UK data earlier in the week. Out later today we have services activity figures which could see some movement, so call in now for a live exchange rate.
In the euro zone, the euro gained versus the dollar to the highest level in almost a month, finishing the week up over 1% against the US currency. The euro was boosted by the news that euro zone leaders had agreed (in principal) a new 3 year deal for Greece that would involve further external funding. In addition, German Chancellor Angela Merkel helped to underline support in the currency saying that the European Union remained committed to the euro and that despite the debt crisis, the outlook for German growth looked “very positive”. Furthermore – and a fact that may seem bizarre to many readers – there was speculation this week over a further interest rate hike in the region. It was no surprise then that sterling weakened to below €1.13/£1 – call in now for a live exchange rate.
In the USA, the US dollar extended losses against the euro after a run of disappointing data that saw investors shift focus away from Greece and onto the US recovery. Figures this week showed poor factory activity, with orders dropping the most in a year. Labour figures have also been sub-par, and a poor week for the US was topped on Thursday by a warning from credit rating agency Moody’s over the USA’s sovereign debt rating. A downgrade of the US rating could potentially cause havoc in the markets. There is further key data released today in the form of Non-Farm Payroll numbers so ensure you protect yourself by speaking to a trader sooner rather than later.
Elsewhere, South Africa’s rand and Norway’s krone rose the most among the major currencies as commodities advanced. The rand gained 1.1% to 6.7599 per dollar and the krone rose 0.8% to 5.4015 versus the US currency. In addition, the Canadian currency extended its loss against the U.S. dollar as stocks and crude oil, the nation’s biggest export,
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro gained versus the dollar to the highest level in almost a month, finishing the week up over 1% against the US currency. The euro was boosted by the news that euro zone leaders had agreed (in principal) a new 3 year deal for Greece that would involve further external funding. In addition, German Chancellor Angela Merkel helped to underline support in the currency saying that the European Union remained committed to the euro and that despite the debt crisis, the outlook for German growth looked “very positive”. Furthermore – and a fact that may seem bizarre to many readers – there was speculation this week over a further interest rate hike in the region. It was no surprise then that sterling weakened to below €1.13/£1 – call in now for a live exchange rate.
In the USA, the US dollar extended losses against the euro after a run of disappointing data that saw investors shift focus away from Greece and onto the US recovery. Figures this week showed poor factory activity, with orders dropping the most in a year. Labour figures have also been sub-par, and a poor week for the US was topped on Thursday by a warning from credit rating agency Moody’s over the USA’s sovereign debt rating. A downgrade of the US rating could potentially cause havoc in the markets. There is further key data released today in the form of Non-Farm Payroll numbers so ensure you protect yourself by speaking to a trader sooner rather than later.
Elsewhere, South Africa’s rand and Norway’s krone rose the most among the major currencies as commodities advanced. The rand gained 1.1% to 6.7599 per dollar and the krone rose 0.8% to 5.4015 versus the US currency. In addition, the Canadian currency extended its loss against the U.S. dollar as stocks and crude oil, the nation’s biggest export,
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 2 June 2011
Sterling had a poor day yesterday, plummeting against the US dollar and euro to close the day nearly 0.6% down against both currencies. The reason for the sudden drop was that UK manufacturing data came in much worse than expected. Manufacturing PMI data fell to a 20 month low of 52.1 last month, well below the 54.1 that had been forecast. In addition, UK mortgage approvals fell to their lowest level in four months. Whilst many had been expecting a lower reading on both, the unexpectedly steep drop sent sterling tumbling. Poor data has reduced the likelihood of the Bank of England increasing interest rates and with even more key sector activity figures coming out over the week, there is a risk that sterling will drop further so call in now for a live exchange rate.
In the euro zone, in contrast to sterling, the euro showed little reaction to lower than expected euro zone manufacturing PMI data which showed growth slowing. Despite the region embroiled in a second round of panic over the debt crisis, investors are more focused on a European Central Bank meeting next week when policymakers are widely expected to signal a rate hike in July. There was some volatility as mixed speculation abounded with regards to a potential second bailout for Greece, and this is likely to continue whilst the EU and IMF negotiate a solution. As a result, ensure you speak to a trader to avoid losing out.
The US dollar slipped to a fresh record low against the Swiss franc, as deteriorating U.S. economic data put pressure on the US currency. This came in contrast to better than expected data on Swiss manufacturing and retail sales, which saw the dollar drop. In addition, the US dollar was dented by figures that showed employment increased by only 38,000 last month - the smallest gain since September. Out today there is further unemployment claims figures, so make sure you do not miss out by speaking to one of the team today.
Elsewhere, Australian GDP fell by 1.2 percent on the Quarter, 0.2% worse than had been expected. Exports dropped which was a major contributor to the lower reading. With a strong Australian dollar and slowing demand from China it is no surprise that exports have fallen. Will this be the start of a turnaround for the Aussie dollar? Call in now to find out.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, in contrast to sterling, the euro showed little reaction to lower than expected euro zone manufacturing PMI data which showed growth slowing. Despite the region embroiled in a second round of panic over the debt crisis, investors are more focused on a European Central Bank meeting next week when policymakers are widely expected to signal a rate hike in July. There was some volatility as mixed speculation abounded with regards to a potential second bailout for Greece, and this is likely to continue whilst the EU and IMF negotiate a solution. As a result, ensure you speak to a trader to avoid losing out.
The US dollar slipped to a fresh record low against the Swiss franc, as deteriorating U.S. economic data put pressure on the US currency. This came in contrast to better than expected data on Swiss manufacturing and retail sales, which saw the dollar drop. In addition, the US dollar was dented by figures that showed employment increased by only 38,000 last month - the smallest gain since September. Out today there is further unemployment claims figures, so make sure you do not miss out by speaking to one of the team today.
Elsewhere, Australian GDP fell by 1.2 percent on the Quarter, 0.2% worse than had been expected. Exports dropped which was a major contributor to the lower reading. With a strong Australian dollar and slowing demand from China it is no surprise that exports have fallen. Will this be the start of a turnaround for the Aussie dollar? Call in now to find out.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 1 June 2011
Sterling hit the highest level against the US dollar in nearly a month yesterday after a jump in global risk appetite saw investors move away from the ‘safe haven’ of US dollars into other higher yielding currencies. Despite a quiet day for data, progress on the euro zone debt crisis saw a surge in demand for the euro. Sterling fell as much as 0.9% against the single currency after news was released that Germany would make concessions on efforts to help Greece avoid a debt restructuring. Germany has been generally more and more resistant to propping up other countries in the region, so this is a key change. Despite sterling’s jump against the US dollar, there is a lot of risk to the pound this week with a wide array of key data that could weaken sterling if it comes in worse than expected. Ensure you do not miss out and speak to one of the team today.
In the euro zone, the euro had a bumper day, boosted by the German concessions but also off the back of comments from head of euro-area finance ministers Jean-Claude Juncker who ruled out a “total restructuring” of Greek debt on Monday. Whilst more aid to Greece does not solve the problem, it minimises the ‘contagion’ risk of spread to Ireland, Portugal and others as it keeps borrowing costs lower in the region. It is a quiet day for data in the region today, but expect further volatility related to the debt crisis.
In the USA, the surge in risk appetite following the news on Greece saw equity markets jump around the world. The US dollar is closely correlated to risk appetite, so when investors feel happier taking risk, they quickly move funds away from the low yielding US dollar denominated assets. US data has been lagging of late, and as such, the prospects for higher interest rates are low. Call in now for a live price.
Elsewhere, the Royal Bank of Canada voted to leave interest rates unchanged at 1% for the 6th month in a row. Citing slower growth in the USA and poor data in Canada, the Governor stated that this provided enough justification to pause their programme of rate hikes that started in the wake of the 2008 financial crisis.
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 bumper day, boosted by the German concessions but also off the back of comments from head of euro-area finance ministers Jean-Claude Juncker who ruled out a “total restructuring” of Greek debt on Monday. Whilst more aid to Greece does not solve the problem, it minimises the ‘contagion’ risk of spread to Ireland, Portugal and others as it keeps borrowing costs lower in the region. It is a quiet day for data in the region today, but expect further volatility related to the debt crisis.
In the USA, the surge in risk appetite following the news on Greece saw equity markets jump around the world. The US dollar is closely correlated to risk appetite, so when investors feel happier taking risk, they quickly move funds away from the low yielding US dollar denominated assets. US data has been lagging of late, and as such, the prospects for higher interest rates are low. Call in now for a live price.
Elsewhere, the Royal Bank of Canada voted to leave interest rates unchanged at 1% for the 6th month in a row. Citing slower growth in the USA and poor data in Canada, the Governor stated that this provided enough justification to pause their programme of rate hikes that started in the wake of the 2008 financial crisis.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
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