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.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
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.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
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