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