Daily Currency Note 28th September 2012

Sterling performed fairly well this week rising to a 3 week high against the euro whilst staying fairly range bound against the US dollar as shifts in risk sentiment due to developments in Europe drove the market. The main data out of the UK this week was the final GDP figures for the second quarter which was revised up to -0.4% from -0.5% providing some relief albeit the figure still confirms that the UK remains in recession. More positive data was released showing that the number of new mortgage approvals was increasing by more than anticipated whilst the Confederation of British Industry (CBI) revealed that the volume of sales had increased by more than expected from last month. There is very little data out of the UK today and the key focus will remain Europe as the markets attempt to digest the Spanish budget and second guess when and if Spain will request for a full sovereign bailout. The potential for a lot of volatility remains so please call in now for the latest news and rates.

The euro had a positive start to the week as the markets hoped a Spanish bailout request was nearing and at the same time one of the members of the ECB all but ruled out an interest rate cut at the central banks next meeting. This positivity did not last as the Spanish government stated that it will put off requesting for a bailout until absolutely necessary which saw yields on Spanish ten year bonds rising back above the 6% level. Violent protests broke out in Greece during the 24 hours general strike which took place in the face of the increased austerity measures that are expected to be announced shortly. Inflation data, French consumer spending and German retail sales data will all be released on what is a busy day today in Europe. However developments in Spain and Greece will play the biggest role on the euro’s relative strength. Call in now for the latest update and rates.

The US dollar started poorly this week as risk appetite was the main driver in the market. As risk sentiment shifted the dollar begin to strengthen as investors sought safer havens for their money.  Despite consumer confidence showing a more upbeat tone than markets expected this week, the actual data released painted a very different picture. Final GDP figures in the US were revised downwards revealing weaker growth of 1.3% compared to the 1.7% that was previously reported, a sting of poor housing data was released and the change in the value of new goods orders with manufactures showed a sharp contraction. More consumer confidence figures will be released today alongside data showing the change in personal spending, but, shifts in risk sentiment due to any news from Europe is likely to cause much greater price action. To get the latest news please call in.

Elsewhere, the Hungarian forint was one of the worst performing major currencies this week following the announcement that the Hungarian Central Bank (MNB) had cut interest rates by 0.25%. The Japanese yen was one of the best performers due to its safe haven status in a risk adverse market. News came from China suggesting that it may look to loosen its monetary policy as early as next week to boost its economy. Canadian retail sales figures beat expectations this week and the market will look to today’s GDP data release for further influence on the relative strength of the Canadian dollar. Call in now for the latest news and a live quote.

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Daily Currency Note 27th September 2012

Sterling performed relatively well yesterday but struggled against the US dollar and Japanese yen as risk aversion was the main driver in the market. On the data front, the Confederation of British Industry (CBI) revealed that the volume of sales had increased by more than expected from last month, but, the reaction in the market was fairly muted. Today’s final GDP figures for the second quarter will be closely watched by investors with present expectations of a reading of -0.5% as per the preliminary figures. However, some are hoping for a revision upwards with some economists predicting an improved final reading of -0.2%. Any variation away from the expected -0.5% would cause some volatility for sterling whilst news from Europe will also play an important role. Please call in now for the latest news and rates.

The euro struggled yesterday as the markets fear that Spain will delay asking for a full sovereign bailout which in turn saw the yields on Spanish 10 – year bond rising back above the 6% level. The Spanish government stated that it will put off requesting for a bailout until borrowing costs become too high, despite stating that the Spanish economy was shrinking at a faster rate than expected. More bad news for Greece came as a general strike took place in the face of the increased austerity measures that are expected to be announced shortly. However, without these measures the Troika will not grant Greece the next tranche of its bailout meaning Greece would in turn default on its debts. The Italian benchmark 10-year bond auction today will be watched closely by investors. The news surrounding Greece and Spain, and in particular Spain’s draft budget plans which are announced today are likely to have a significant impact on the euro’s relative strength. Call in now for the latest update and rates.

The US dollar performed well yesterday as risk appetite shifted to risk aversion due to fears surrounding Spain delaying their bailout request and data from the US revealing that the number of new homes sold in the last month had fallen when a significant increase had been expected. More housing data will be released today showing the change in the number of new homes pending sale in the last month, final second quarter GDP figures will be revealed and are expected to show modest growth of 1.7% whilst figures showing the change in the number of new people claiming unemployment benefits will also be announced. So a high news day and  to get the latest news please call in.

Elsewhere, the Japanese yen performed well yesterday due to its safe haven status in a risk adverse marker, whilst the Polish zloty struggled. Overnight, business confidence data from New Zealand was released; but, it is a relatively quiet day otherwise. Call in now for the latest news and a live quote.

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Daily Currency Note 26th September 2012

Sterling had a positive start to Tuesday, but, struggled in the afternoon as risk appetite drove the market and the global focus remained on Europe. This was in spite of data revealing the number of new mortgage approvals increasing by more than anticipated.. Out today, an index from the Confederation of British Industry (CBI) is expected to show that the volume of sales has increased from last month, whilst the Bank of England will also release a survey on the relative credit conditions in the UK. Please call in now for the latest news and rates.

The euro had a mixed day following continued speculation that Spain may soon apply for a full sovereign bailout. Later this week Spain will reveal its draft budget plans and the markets will keep a close eye on this release to see how convincing it is in its promise to cut the growing deficit. The euro was buoyed yesterday following one of the members of the ECB all but ruling out an interest rate cut at the central banks next meeting. The German benchmark 10-year bond auction today will be closely watched as it is a clear indicated of investors' confidence globally and more specifically within the Eurozone. Call in now for the latest update and rates.

The US dollar struggled in general today as risk appetite increased partly due to the US consumer confidence figures coming out even better than initially expected jumping to a reading of 70.3 which was a 7 month high, whilst house prices data revealed a bigger than expected rise. Today, we will see data announced showing the number of new homes sold in the last month with the markets expecting a slight increase. Get the latest news by calling in.

Elsewhere, the Hungarian forint was the worst performing major currency yesterday following the announcement that the Hungarian Central Bank (MNB) had cut interest rates by 0.25%. Other data released showed that Canadian retail sales figures had beaten expectations; but, the Canadian dollar failed to stage a significant rally. Call in now for the latest news and a live quote.

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Daily Currency Note 25th September 2012

Sterling strengthened to a 2 week high against the euro as concerns about the single currency and the global economy at large drove the market. Similarly, sterling weakened against the US dollar and Japanese yen as investors sought safer havens for their money. Out today, figures showing the number of new mortgages approved in the previous month will be announced. Movements in exchange rates continue to be quick and rapid given the uncertainty in the Eurozone so expect any news from Europe to play a much bigger role in sterling’s relative strength today. Please call in now for the latest news and rates.

The euro struggled yesterday as German business climate data revealed that confidence has unexpectedly fallen despite the German Federal Constitutional Court ruling in favour of the European Stability Mechanism (ESM). The contrasting French and German opinions on how the proposed banking union should be supervised is not helping matters and the German Chancellor is due to meet the President of the European Central Bank (ECB) today to discuss matters further whilst also discussing the on-going problems with Spain and Greece. With little significant data released today, the markets will look to the ECB Presidents press conference as a focal point for today’s trade patterns. Call in now for the latest update and rates.

The US dollar performed well yesterday as investors looked to buy US dollars and other safe haven currencies as risk aversion dominated market movements thorough much of the day. Consumer confidence figures released today are expected to show that current market conditions had marginally improved from last month. Variation away from the expected figures has caused volatility in the past as financial confidence drives consumer spending. Get the latest news by calling in.

Elsewhere, the Japanese yen was particularly strong and the New Zealand dollar was particularly weak as risk aversion drove the market which was not helped by data from China revealing that growth has continued to decelerate in the third quarter increasing concerns about the state of the global economy. Out today, the President of the Swiss National Bank is speaking and we also have the release of retail sales figures from Canada, so call in now for the latest news and a live quote.
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Daily Currency Note 24th September 2012

Sterling briefly touched a one year high of 1.63 against the US dollar on Friday, but, struggled to break through this resistance level. Last time the markets reached these levels in April we saw the market snap back aggressively with sterling weakening off by ten cents in less than two months. We will have to see if the markets react in the same way this time. Sterling faired fairly well in general on Friday as figures released showed that the level of public sector net borrowing was less than initially anticipated. This week the main release will be the current account figures and the markets will hope for a fairly positive reading following the public sector net borrowing figures released on Friday. However there is a raft of data released elsewhere which will affect sterling so call in now for the latest rates.

The euro had a mixed day on Friday as concerns that Spain may soon apply for a full sovereign bailout were accelerated as rumours spread that EU officials were already in talks about a potential rescue package. This week, the main releases will be German business confidence figures, the Italian and German benchmark 10-year bond auctions and the president of the European Central Bank (ECB) is also speaking. So plenty of news which will impact on the euro one way or the other so call in now for the latest update and rates.

The US dollar had a poor day on Friday and weakened against the majority of currencies as risk appetite continued to be the main driver in the market. This week we will see another full economic calendar in the US which includes consumer confidence figures, housing data and employment data. This raft of data being released will give a clearer picture on the state of the US economy and could have a significant effect on the US dollar. The US dollar has struggled over the past few months now and is close to some key levels against other currencies. We will have to see if it breaks through these levels or stages a recovery. Get the latest news by calling in.

Elsewhere, the main release on Friday was the Canadian inflation data which came out slightly lower than expected. This week, Canadian GDP data and retail sales figures will be announced, business confidence from New Zealand will be released and the President of the Swiss national bank is also speaking. Call in now for the latest news and a live quote.

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Daily Currency Note 21st September 2012

Sterling had a poor day yesterday following the release of the Bank of England’s latest meeting minutes which highlighted the fact that whilst no further quantitative easing was introduced in September’s meeting, there is the potential for additional stimulus if the economy continues to struggle. As expected though, the Bank of England’s latest meeting minutes revealed that all of the members of the Monetary Policy Committee (MPC) voted to keep the asset purchase facility and interest rates on hold. The main release on the agenda today will be retail sales figures which are always a good indicator of the UK's economic health. However, we will have to see how much the Olympics have distorted the numbers. Call in now for the latest rates.

The euro had a mixed day as news spread that Germany’s opinion differed from much of Europe on how the proposed banking union should be supervised. On a more positive note, Standard and Poor’s (one of the big three credit rating agencies) said that it had no intention of downgrading Spain to “junk” grade in the near future. On the agenda today we have the Spanish 10 year bond auction which will be closely watched by investors as the markets continue to speculate that Spain may need a full government bailout. Other data released today includes the euro-area wide manufacturing and services Purchasing Managers' Index (PMI) figures. Call in now for the latest news.

After a strong start to the day the US$ weakened. This was despite the news that the number of homes (excluding new builds) that were sold during the previous month increased to a 2 year high and that the number of new residential building permits issued in the last month were as expected. The US$ is the weakest performing major currency over the last quarter. The main release today will be the Philly manufacturing index which will indicate the relative economic health in manufacturing sector. Other data out today includes the change in the number of new people claiming unemployment benefits, whilst two member of the Federal Open Market Committee (FOMC) are also speaking. Get the latest news by calling in.

Elsewhere, the Japanese yen performed well yesterday despite its initial weakness following the overnight announcement that the Bank of Japan was increasing its program of asset purchases to help economic growth. Overnight, GDP data from New Zealand was released as well as manufacturing PMI data from China. There is little other data announced throughout the day; so call in now for the latest news and a live quote.



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Daily Currency Note 20th September 2012

Sterling had a poor day yesterday following the release of the Bank of England’s latest meeting minutes which highlighted the fact that whilst no further quantitative easing was introduced in September’s meeting, there is the potential for additional stimulus if the economy continues to struggle. As expected though, the Bank of England’s latest meeting minutes revealed that all of the members of the Monetary Policy Committee (MPC) voted to keep the asset purchase facility and interest rates on hold. The main release on the agenda today will be retail sales figures which are always a good indicator of the UK's economic health. However, we will have to see how much the Olympics have distorted the numbers. Call in now for the latest rates.

The euro had a mixed day as news spread that Germany’s opinion differed from much of Europe on how the proposed banking union should be supervised. On a more positive note, Standard and Poor’s (one of the big three credit rating agencies) said that it had no intention of downgrading Spain to “junk” grade in the near future. On the agenda today we have the Spanish 10 year bond auction which will be closely watched by investors as the markets continue to speculate that Spain may need a full government bailout. Other data released today includes the euro-area wide manufacturing and services Purchasing Managers' Index (PMI) figures. Call in now for the latest news.

After a strong start to the day the US$ weakened. This was despite the news that the number of homes (excluding new builds) that were sold during the previous month increased to a 2 year high and that the number of new residential building permits issued in the last month were as expected. The US$ is the weakest performing major currency over the last quarter. The main release today will be the Philly manufacturing index which will indicate the relative economic health in manufacturing sector. Other data out today includes the change in the number of new people claiming unemployment benefits, whilst two member of the Federal Open Market Committee (FOMC) are also speaking. Get the latest news by calling in.

Elsewhere, the Japanese yen performed well yesterday despite its initial weakness following the overnight announcement that the Bank of Japan was increasing its program of asset purchases to help economic growth. Overnight, GDP data from New Zealand was released as well as manufacturing PMI data from China. There is little other data announced throughout the day; so call in now for the latest news and a live quote.


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Daily Currency Note 19th September 2012

Sterling had a mixed day yesterday strengthening against the euro whilst trading flat against the US dollar as inflation data in the UK headlined by the Consumer Price Index (CPI) came in pretty much as expected. This comforted the market as it indicated that inflation was being contained even though the money supply had and was being increased significantly through the Bank of England's program of quantitative easing.  The main release globally today will be the Bank of England’s latest meeting minutes which are expected to show that all of the members of the Monetary Policy Committee (MPC) voted to keep the asset purchase facility and interest rates on hold. Anything else would surprise the market and could result in increased volatility; so call in now for the latest news.

The euro struggled against all of its major counterparties as the markets start to speculate that Spain may soon need to apply for a full sovereign bailout.  On a more positive note, German and other euro zone economic confidence figures were actually better than expected; but, this did little to help the euro’s strength. There is very little data released across Europe today; as a result, expect the euro to trade on any further developments in Spain whilst following the underlining risk sentiment created by news from the UK and the US. Call in now for the latest rates.

The US dollar was fairly strong yesterday strengthening or trading flat again the majority of currencies as data released showed that both current account figures and statistics demonstrating the overseas demand for US securities beat market expectations. It would appear the dramatic dollar sell off we saw last week following the announcement of a program of monthly quantitative easing of up to US$ 40 billion has stopped for the time being. A raft of housing data will be released today; the most significant releases includes the number of new residential building permits that were issued in the last month and data showing the number of homes (excluding new builds) that were sold during the previous month. Get the latest news by calling in.

Elsewhere, the Czech koruna was particularly weak yesterday as concerns started to spread that the Prime minister will not have enough support in parliament to pass a bill aimed at reducing its national budget deficit. Overnight we saw current account figures from New Zealand released as expected; but, much more significantly, the Japanese yen weakened across the board after the Bank of Japan announced that it was following the US’s lead by increasing its program of asset purchases to help economic growth. Out today we have data outlining the economic expectations in Switzerland and late this evening GDP data form New Zealand will be announced. Call in now for the latest news and a live quote.

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Sterling was one of the best performing currencies yesterday, steadily recovering from its 2 month low versus the euro on Friday and reaching fresh highs of 1.6270 against the US dollar. This favourable movement for sterling came despite house pricing data being released which showed the average price of homes for sale was 0.6% less than last month. Inflation data released this morning will be closely watched by investors and is expected to show that the price of good and services has increased by 2.5% from last year. The markets continue to be unsettled so call in now for the latest rates.

The euro performed relatively well yesterday and sterling was the only major currency it lost ground to despite Spanish bond yield pushing back towards the 6% level. Ministers across Europe yesterday were trying to come to an agreement with regards to the make-up of the proposed banking union, but, it appears that the Germans and French disagree on which banks should be under supervision. Euro zone trade balance and current account figures released missed market expectations showing the trade surplus had narrowed by more than anticipated. German and other euro zone economic confidence figures will be the main release on the agenda today on what is otherwise expected to be a relatively quiet day; so, call in now for the latest news

The US dollar slowly started to recover from its sharp sell off last week and strengthened against most major currencies yesterday, but, it traded flat against the euro and lost ground against sterling. On the data front, the US empire state manufacturing index showed economic conditions had worsened by much more than initially predicted highlighting why the Federal Reserve had put in place its rolling program of quantitative easing. Current account figures and statistics depicting the overseas demand for US securities are announced today. Get the latest news by calling in.

Elsewhere, the Japanese yen continued to be sold off in advance of the central bank meeting on Wednesday, whilst the Polish zloty, Hungarian forint and Czech koruna were also particularly weak. Overnight, the Reserve Bank of Australia (RBA) released its latest monetary policy meeting minutes which investors pay close attention to in the hope of finding clues to what course of action the central bank may look to take next. Throughout the rest of the day there is not a great deal of significant data released; but, late this evening current account figures from New Zealand will be announced. Call in now for the latest news and a live quote.

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On Friday risk sentiment remained largely unchanged and sterling continued to follow its weekly trend weakening against the euro, dropping as low as 1.2325 at one stage, and strengthening against the US dollar peaking at 1.6250. This week the main release will be the Monetary Policy Committee (MPC) meeting minutes on Wednesday as investors look for clues to see if and when the central bank may look to loosen monetary policy further. Data to be released includes retails sales figures, public sector net borrowing statistics and the Bank of England inflation letter will also be published. Call in now for the latest rates.

The euro continued to perform well on Friday reaching 1.3125 against the US dollar as investors confidence has grown for the single currency following last week’s news that the German Federal Constitutional Court had ruled in favour of the €500 billion support fund. Inflation data released on Friday was slightly lower than anticipated and then the focus moved to the Economic and Financial Affairs Council (ECOFIN) and Europgroup meetings on Friday and Saturday respectively where the amount of financial aide to be given to Cyprus was one of the main topics on the agenda. This week, some of the main releases are the German economic confidence figures and   the euro-area wide manufacturing and services Purchasing Managers' Index (PMI) figures. There is also a Spanish 10 year Bond Auction and the President of the European Central Bank (ECB) is also speaking. So a busy week - call in now for the latest news.

The US dollar continued to weaken against the majority of currencies on Friday as risk appetite drove the market following the announcement of a third round of quantitative easing from the Federal Open Market Committee (FOMC) on Thursday. Retail sales figures released were better than expected as was consumer confidence; but, the level of inflation was marginally lower than economists originally anticipated. Out this week we have two sets of significant housing data, the change in the number of new people claiming unemployment benefits and economic confidence from the manufacturing sector will also be announced. Get the latest news by calling in.

Elsewhere, the Japanese yen struggled on Friday as investors start to speculate that this week’s Bank of Japan’s monetary policy statement may include additional central bank intervention in an attempt to shore up the state of the economy. In addition, the latest monetary policy meeting minutes from the Reserve Bank of Australia (RBA) will be announced, trade balance data and GDP figures from New Zealand will be released and Chinese manufacturing PMI is also on the agenda. Call in now for the latest news and a live quote.

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Sterling remained fairly flat yesterday against the majority of currencies as very little significant data was released globally and the markets await key events later on in the week. Trade balance data released today will be the main release on the agenda, whilst one of the members of the Bank of England is speaking in the evening on what is otherwise scheduled to be another quiet day in the UK. Following yesterday’s lack of volatility, you would expect a similar pattern to emerge today; however, in such uncertain times anything could happen. Call in now for the latest rates.

The euro traded in a similar pattern to sterling yesterday and remained relatively flat due to the lack of significant data being released. Of the data that was released we saw French Industrial Production beat expectations showing slight growth of 0.2% and European investor confidence although higher than anticipated was still extremely pessimistic. Other data showed that the Italian second quarter GDP figures had been revised downwards showing a deeper recession than initially predicted. It is scheduled to be a quiet day on the data front in the Eurozone today with German inflation data and French employment figures being the main data released. However, with so much riding on The German Federal Constitutional Court ruling on Wednesday, we could see the markets very jittery leading up to the event. Call in now for the latest news

The US dollar recovered some of its losses from Friday; but, like much of the market traded in a narrow range against the majority of currencies. Trade balance data released today will be the main release on the agenda, whilst consumer confidence data will also be announced. As with the Eurozone, the US will look to events later in the week for influence the most significant being the Federal Open Market Committee (FOMC) announcement on Thursday. Get the latest news by calling in.

Elsewhere, the Norwegian krone was one of the worst performing currencies yesterday as data released showed that inflation had slowed, whilst the South African rand was one of the best performers. Chinese trade balance data was much better than expected, but, this was due to a big drop in imports rather than a growing export market. Overnight we saw the release of Japanese manufacturing confidence, Australian business confidence and the total value of new loans issued in China in the previous month. Out later on today, Canadian trade balance data and the number of new residential houses that have begun construction in the previous month will be released. Call in now for the latest news and a live quote.

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Sterling struggled against the majority of currencies on Friday; but, broke through the 1.60 level against the US dollar for the first time since May as speculation mounted that the US Federal bank may look to increase quantitative easing in the near future. Industrial production and manufacturing figures released on Friday were higher than market estimates and manufacturing Producer Price Index (PPI) also showed that output grew by more than anticipated. The main releases this week are the trade balance data released tomorrow and the change in the number of people claiming unemployment benefits on Wednesday in what is a relatively thin week for UK economic news. As a result, expect sterling to be affected more by news from and what is happening in the US and Europe. Call in now for the latest rates.

The euro continued to perform well on Friday reaching two month highs against sterling and four month highs against the US dollar following the ECB's announcement of its bond buying program on Thursday.  German industrial production figures released on Friday were higher than expected, but, had little direct impact to the euro’s strength. One of the main events this week will be the benchmark Italian 10 year bond auction on Thursday and expectations will be high for a relatively low bond yield because of the promises made by the ECB last week. Wednesday could be very significant as we will hear the result of The German Federal Constitutional Court ruling on the constitutionality of the European Stability Mechanism (EMS). The expectation is for a “yes” vote which support a continued euro rally. If they vote “no” we should expects the euro to weaken dramatically as the ruling is needed to enable bailouts. The market will also keep an eye on the Dutch Parliamentary election this week to see how “euro-friendly” the new government will be. So a busy week in the Euro zone and please call in now for the latest news.

The US dollar was extremely weak on Friday as risk appetite dominated the market and traders fled the greenback to look for riskier investments. This shift in risk sentiment was caused by the release of Non-farm pay rolls data which showed the job market grew by much less than anticipated. This poor showing was particularly influential as the Chairman of the Federal Bank gave a strong hint that the next round of quantitative easing could be delivered if the labour market continued to struggle. It is an extremely busy week for data in the US. The main focus will be on the Federal Open Market Committee (FOMC) on Thursday where the markets currently expect the announcement of more quantitative easing; however it is not a foregone conclusion. Other data released this week includes consumer sentiment figures, inflation data and retail sales figures. With such a busy agenda this week and the potentially for central bank intervention on Thursday there is a high possibility of rapid exchange rate movements. Get the latest news by calling in.

Elsewhere, renewed risk appetite in the market saw the Hungarian forint, Swedish koruna and Polish zloty perform extremely well. Data released from Canada included better than expected building permits figures and manufacturing PMI; however, unemployment figures fell short of expectations. The Swiss National Bank (SNB) meet on Thursday and this will be watched closely by investors as the Swiss franc started to weaken against the euro for the first time since May last week. Furthermore, there have been rumours that the peg at EUR/CHF 1.20 may be raised to the 1.22 mark. Elsewhere, The Reserve Bank of New Zealand (RBNZ) is expected to keep interest rates on hold at 2.5% this week; but, the markets will closely watch the rate statement that follows for hints to future outcomes. Call in now for the latest news and a live quote.

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Sterling continued its strong run of form against the US dollar this week hitting a 4 month high of 1.5940 yesterday whilst staying relatively range bound against the euro. Stronger than expected services and manufacturing Purchasers Managers Index (PMI) data released this week has helped sterling’s strength and overshadowed the slightly worse than expected construction figures. The Bank of England voted to keep interest rates and quantitative easing on hold yesterday as was widely expected; but, the markets focus this week has been towards yesterday's European Central Bank (ECB) announcements and the unemployment data released in the US. Out today, the main releases will be the change in the level of manufacturing production in the last month and inflation data will also be announced. Call in now for the latest rates.

The euro had a mixed week as traders remained cautious in the run up to the eagerly anticipated ECB announcement of its bond buying programme yesterday. The President of the ECB announced yesterday that it has agreed to buy unlimited amounts of short term government bonds with maturities of up to 3 years (“Monetary Outright Transactions”) to drive down governments borrowing costs which restored some confidence in the market. On a more negative tone for the single currency, the ECB downgraded its growth forecasts for the region for the rest of the year, Moody’s (one of the big three credit rating agencies) downgrading the entire regions outlook to negative and a string of poor PMI data was also released. The main release today will be figures showing the level of German industrial production; but, the market will look to the US labour data for influence whilst still trying to fully digest what yesterday’s announcements actually mean for the euro's future. Call in now for the latest news.

The US dollar was on the side-lines for the early part of this week due the Labour Day bank holiday on Monday and the markets looking to Europe for greater influence. Data released this week showed that Manufacturing PMI fell short of initial estimates; but, the non-manufacturing release was much better than expected. Positive unemployment data released yesterday was well received by the market and investors will now expect that today’s highly influential Non-farm pay rolls data to be equally positive. This release often caused a lot of volatility in the past; but, it carries even more weight this month following the Chairman of the Federal Bank’s comments which specifically indicated that is the labour market continued to struggle he would see good reason to increase quantitative easing. Get the latest news by calling in.

Elsewhere, the Australian dollar continued to struggle this week after a sting of poor data was released which included weaker than expected GDP figures, much worse than excepted retail sales figures and extremely poor figures depicting the change in the number of employed people during the previous month. In other news, the Bank of Canada’s decided to keep interest rates on hold at 1% which was widely expected. Out today we see a raft of data out of Canada which includes unemployment data, building permits figures and manufacturing PMI. Call in now for the latest news and a live quote.

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Sterling continued to perform fairly well yesterday hitting a 4 month high against the US dollar following the positive Services Purchasers Managers Index (PMI) which grew at its fastest pace for five months. The Bank of England’s decision on interest rates and quantitative easing is the main release from the UK today and both are widely expected to be kept on hold. The main focus will be on the European Central Bank (ECB) as the markets second guess to what extent the central bank will look to intervene in government borrowing costs. Call in now for the latest rates.

The euro performed well yesterday as the markets speculate that the ECB today will announce its plan to buy in unlimited amounts short term government bonds with maturities of up to 3 years (“Monetary Outright Transactions”) to drive down governments borrowing costs. Renewed confidence was evident in the markets even though the benchmark German 10 year bond auction was not particularly well received and the euro actually strengthened against the Swiss franc for the first time since April moving slightly above the 1.20/Chf1 peg enforced as a lower limit by the Swiss National Bank (SNB). On the data front yesterday, Services PMI data released across the Euro zone was worse than expected; but, this was largely ignored by the markets. The ECB’s interest rate decision and Press Conference that follows will have the eyes of the financial world on it today and expectations are high for decisive action. Expect markets to be tentative through the morning; but, we could see a lot of volatility in the afternoon. Call in now for the latest rates.

The US dollar had a mixed day yesterday as the market focus remained elsewhere. On the data front, the non-farm productivity figures in the second quarter were unexpectedly revised up to 2.2% from 1.8 % last quarter. Today we will see the first raft of unemployment data released which includes figures showing the change in the number of new people claiming unemployment benefits and the estimated change in the number of people employed during the previous month. These releases should indicate what sort of figures we can expect to see from Friday’s highly influential Non-farm pay rolls data which is expected to have a significant influence on the Chairman of the Federal Banks decision to potentially increase quantitative easing. Other data out today includes PMI statistics which excludes the manufacturing industry. Get the latest news by calling in.

Elsewhere, the Australian dollar struggled after weaker than expected GDP figures were released showing that the economy only grew by 0.6%, down from 1.4% last quarter. The Australian dollar has been struggling for a few weeks and overnight we will see the release of unemployment rate and employment change figures. In other news, the Bank of Canada’s decided to keep interest rates on hold at 1% which was widely expected; but, hinted at a potential increase if the economy keeps expanding. Call in now for the latest news and a live quote.

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Sterling hit fresh highs against the US dollar yesterday breaking though the 1.59 mark for only the second time in 4 months before weakening off after  the Construction Purchasers Managers Index (PMI) missed market estimates. The index showed that the construction sector was contracting when a slight expansion had been initially predicted. The Services PMI will be released today (the most influential release due to the services sector making up close to 80% of GDP) and is expected to show the UK’s largest sector continued to expand steadily. If the figures fall short you can expect to see sterling sold off against the majority of currencies. Call in now for the latest rates.

The euro struggled yesterday following Moody’s (one of the big three credit rating agencies) downgrading the entire regions outlook to negative underlining the fragility of the region. Today we will see the results of the benchmark German 10 year bond auction which in particular should show the markets confidence in the region as investors look to buy German bonds when looking for safe havens for their money. Other data released today includes Europe wide retail sales statistics and Europe wide Services PMI figures. However, the markets focus is firmly on Thursdays ECB’s interest rate decision and the statement that will follow as investors try to second guess what action may be taken to support the ailing southern states. If this action is bold and decisive, unlikely given all the different political pressures that exist, then the euro will benefit and strengthen. If not then we could  see further weakening against sterling. Some economists are suggesting that another cut in interest rates may be on the way. Call in now for the latest rates.

The US dollar performed well yesterday as risk aversion dominated market movements due to fears surrounding the stability of the Eurozone as well as the disappointing manufacturing PMI figures which were released. The markets continue to speculate that the Federal Bank will look to loosen monetary policy by potentially introducing a third round of quantitative easing and the Non-farm pay rolls data released on Friday may be particular influential following the Chairman of the Federal Bank specifically mentioning that high unemployment was one of the main driving factors behind the call for further easing. Get the latest news by calling in

Elsewhere, we saw another bad day on the data front for Switzerland which saw its economy contract for the first time in 9 months. Early this morning we saw the release of quarterly GDP data from Australia and inflation data from Switzerland will also be released first thing. The main news throughout the rest of the day will be the Bank of Canada’s interest rate decision which is widely expected to be kept on hold at 1%. Call in now for the latest news and a live quote.

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Sterling had a mixed day yesterday following much better than expected manufacturing data  with the Purchasers Managers Index (PMI) showing a figure of 49.5 when only 46.1 had been anticipated. Whilst this release is above market expectations, the figures still show that the manufacturing industry is contracting, albeit by less than it was last month. Construction PMI released today is expected to show a slight expansion of 50.1; but, the markets will hope for even better figures following yesterday's positive release. Call in now for the latest rates.

The euro performed fairly well yesterday despite the release of Europe wide manufacturing PMI data which was worse than expected. Spanish unemployment data will be the main release today; however, the markets will be paying closer attention to the ECB’s interest rate decision on Thursday; as a result, any rumours or increased speculation regarding central bank intervention could cause a lot of volatility. Call in now for the latest rates.

The US dollar traded relatively flat yesterday with the US markets shut due to the Labour Day bank holiday. Manufacturing PMI data released today will be the main release on the agenda and is expected to show very slight industry expansion. Get the latest news by calling in.

Elsewhere, the Swedish krona was one of the worst performing currencies yesterday as manufacturing PMI data was much worse than expected posting a contraction figure of 45.1 when slight industry expansion had been expected. The Australian dollar also struggles as retails sales figures were much worse than excepted dropping by 0.8% when 0.3% growth had been anticipated. Other data released included worse than expected retail sales figures from Switzerland. The worse than expected Chinese manufacturing PMI released on Saturday led investors to believe that the central bank may look to loosen monetary policy shortly to give the economy a boost. First thing this morning the Reserve Bank of Australia’s announced its interest rate decision and GDP data from Switzerland was also announced. Call in now for the latest news and a live quote.


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Sterling had a relatively strong day on Friday as the markets looked towards the annual Jackson Hole symposium and data released showed the change in house prices had increased by much more than expected reaching 1.3% from -0.8% last month. Manufacturing, construction and services Purchasers Managers Index (PMI) figures are released throughout the week which will be closely monitored by investors. The main event this week will be the Bank of England’s decision on interest rates and quantitative easing which are both expected to be kept on hold. The statement that follows should provide some insight into the central banks opinion on the state of the UK’s economy. After a quite few months, trading volumes should start to pick up again and with a busy month for data globally we could see a lot of volatility. Call in now for the latest rates.

The euro continued its strong run against the US dollar on Friday despite the news that Standard and Poor’s (one of the big three credit rating agencies) has downgraded the Catalonia region in Spain. Other data released included poor unemployment data and inflation estimates rose from 2.4% last month to 2.6%. The ECB’s interest rate decision on Thursday will be the main event; but, is widely expected to be kept on hold at 0.75%. Services and manufacturing PMI data will be released and the President of the ECB is also speaking. Call in now for the latest news.

The US dollar was weak on Friday as the Chairman of the Federal Bank hinted at the annual Jackson Hole symposium that more quantitative easing could be implemented to shore up the US economy especially if unemployment level remains high; however, he made no suggestion regarding the timing. The Chairman made clear his feelings that the positives of more quantitative easing outweighed the negatives; however, provided little new information for the markets to digest. It is a bank holiday today in the US; so, volatility should remain relatively low. Manufacturing and non-manufacturing PMI data will be released later on this week alongside a raft of unemployment data which includes the highly influential non – farm pay roll data which will be announced on Friday. All of these especially the non-farm payroll figures will be watched extremely closely following the comments made by Chairman of the Federal Bank. Get the latest news by calling in.

Elsewhere, Canadian GDP figures released on Friday were marginally better than expected showing growth of 0.2% when only 0.1% had been anticipated and Chinese Manufacturing PMI released on Saturday showed a contraction for the first time in 2012. A busy week for Australia includes the Reserve Bank of Australia’s interest rate decision which is expected to be kept on hold at 3.5%, GDP figures are expected to have dropped to 0.9% and unemployment data and trade balance figures will also be announced. The Bank of Canada is also expected to keep interest rates on hold at 1% this week and unemployment data and PMI data will also be released. From Switzerland, retail sales will be announced and the Chairman of the Swiss National Bank (SNB) is also speaking. Call in now for the latest news and a live quote.

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