Please note; due to the bank holiday in the UK on Monday 27th of August next week, Smart Currency Exchange and Smart Currency Business will not be open for trade. Business will resume as normal on Tuesday 28th.
Sterling had a mixed week strengthening against the Canadian dollar and most notably against the US dollar where it reached a 3 month high after the Federal Open Market Committee (FOMC) meeting minutes were released but lost ground against the euro as poor UK economic data undermined sterling. The main UK economic data was the public sector borrowing figures which were worse than expected due to a rise in government spending and a fall in tax receipts. Other data released this week included figures from the Confederation of British Industry (CBI) which showed a sharp drop in manufacturers expected orders over the next three months. Out today, the main release will be the revised GDP figures and market expectations suggest that the preliminary figures of -0.7% will be revised to -0.5%. We are still in the summer season which means that trading volumes are low and therefore any unexpected events can move rates very quickly so call in now for the latest rates.
The euro has had a fairly strong week as markets continued to speculate that the European Central bank (ECB) will intervene in Government borrowing costs by capping bond yields. Other news this week included the Eurogroup chief stating that Greece was now on its “last chance” and that it is still expected to implement all necessary reforms following a meeting with the Greek prime minister. The Eurogroup chief then went onto say that there would be no discussion of any extensions or amendments to the bailout package until after the Troika report mid-September. Europe wide manufacturing and services Purchasing Managers' Index (PMI) released yesterday were better than expected; but, nearly all figures showed industry contraction. The Greek prime minister will meet the leaders of Germany and France today and any news released following this meeting could cause a lot of volatility; so, call in now for the latest news.
The US dollar had a poor end to the week following the release of the FOMC meeting minutes which indicated the Federal Bank may look to loosen monetary policy in the short term if the economy continues to struggle. A string of weak data released this week did little to help the US dollars strength as the number of existing homes sold in the previous month and the number of new people claiming unemployment benefits and manufacturing both missed market estimates. Out today, the main release will be figures depicting the change in the total value of new purchase orders placed with manufacturers for durable goods. Get the latest news by calling in.
Elsewhere, the Canadian dollar struggled this week as extremely poor retail sales figures were released showing a 0.4% drop when a marginal 0.1% increase had been anticipated. Minutes from the Reserve Bank of Australia’s (RBA) latest monetary policy meeting minutes made no suggestion it would be looking to loosen monetary policy in the near future. The Peoples Bank of China has also taken measures to increase liquidity in the world’s second largest economy. Overnight, the Governor of the RBA was speaking and first thing this morning the Governor of the Bank of Japan was also speaking. Call in now for the latest news and a live quote.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Sterling had a mixed week strengthening against the Canadian dollar and most notably against the US dollar where it reached a 3 month high after the Federal Open Market Committee (FOMC) meeting minutes were released but lost ground against the euro as poor UK economic data undermined sterling. The main UK economic data was the public sector borrowing figures which were worse than expected due to a rise in government spending and a fall in tax receipts. Other data released this week included figures from the Confederation of British Industry (CBI) which showed a sharp drop in manufacturers expected orders over the next three months. Out today, the main release will be the revised GDP figures and market expectations suggest that the preliminary figures of -0.7% will be revised to -0.5%. We are still in the summer season which means that trading volumes are low and therefore any unexpected events can move rates very quickly so call in now for the latest rates.
The euro has had a fairly strong week as markets continued to speculate that the European Central bank (ECB) will intervene in Government borrowing costs by capping bond yields. Other news this week included the Eurogroup chief stating that Greece was now on its “last chance” and that it is still expected to implement all necessary reforms following a meeting with the Greek prime minister. The Eurogroup chief then went onto say that there would be no discussion of any extensions or amendments to the bailout package until after the Troika report mid-September. Europe wide manufacturing and services Purchasing Managers' Index (PMI) released yesterday were better than expected; but, nearly all figures showed industry contraction. The Greek prime minister will meet the leaders of Germany and France today and any news released following this meeting could cause a lot of volatility; so, call in now for the latest news.
The US dollar had a poor end to the week following the release of the FOMC meeting minutes which indicated the Federal Bank may look to loosen monetary policy in the short term if the economy continues to struggle. A string of weak data released this week did little to help the US dollars strength as the number of existing homes sold in the previous month and the number of new people claiming unemployment benefits and manufacturing both missed market estimates. Out today, the main release will be figures depicting the change in the total value of new purchase orders placed with manufacturers for durable goods. Get the latest news by calling in.
Elsewhere, the Canadian dollar struggled this week as extremely poor retail sales figures were released showing a 0.4% drop when a marginal 0.1% increase had been anticipated. Minutes from the Reserve Bank of Australia’s (RBA) latest monetary policy meeting minutes made no suggestion it would be looking to loosen monetary policy in the near future. The Peoples Bank of China has also taken measures to increase liquidity in the world’s second largest economy. Overnight, the Governor of the RBA was speaking and first thing this morning the Governor of the Bank of Japan was also speaking. Call in now for the latest news and a live quote.
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