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.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
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.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Posts
No comments:
Post a Comment