Sterling struggled yesterday, dropping to 1.2285 against the euro in the early hours of Wednesday morning due to the euro’s increasing strength amidst rumours of an impending Spanish bailout and Moody’s (one of the big three credit rating agencies) confirmed Spain would keep its investment grade credit rating. Whilst sterling struggled due to an increase in global risk appetite, it continues to rise against the US dollar and the Japanese yen. The latest meeting minutes from the Monetary Policy Committee (MPC) revealed that all 9 members voted to keep interest rates and quantitative easing on hold as was widely expected. Unemployment data released yesterday was particularly upbeat with 4000 less people applying for unemployment benefits during the past month and the overall unemployment rate dropping by more than expected to 7.9%. Retail sales data released today, which measures the rate of consumer spending, is expected to show a marginal increase of 0.4% up from last month's 0.2% drop. Whilst the retail sales figures will be watched closely by investors, any news from the EU Economic Summit is likely to have a much bigger impact on sterling’s strength, so please call to discuss expectations with your trader and for a live price.
The euro performed well yesterday, strengthening to a one month high against the US dollar of 1.3120 and peaking at 1.2285 against sterling before weakening off slightly as the day progressed. This shift can be largely attributed to Moody’s (one of the big three credit rating agencies) announcement that Spain was keeping its investment grade credit rating which eased concerns surrounding the country and the region in general. The EU Economic Summit starts today, where the heads of state will meet to discuss plans to create a closer fiscal union as well as discussing the on-going problems surrounding Greece and Spain in particular. Any news leaked from these meetings could cause a lot of volatility in the markets; furthermore, the markets will also focus on the benchmark 10-year Spanish bond auction as the EU Summit and Moody’s announcement draws more attention to it than normal, so call in now for the latest news and changes in the euro rate.
The US dollar was one of the worst performing currencies yesterday, weakening against all other majors yesterday due to the general increase in global risk appetite and following new housing data in the US revealing an increase to a 4 year high in September. This positive data will have a ripple effect on the US economy, damping demand for safer assets. Out today, we have the weekly release of data showing the change in the number of new people claiming unemployment benefits, whilst economic sentiment figures from US manufactures will also be announced. Please call in now for the latest news and a live update
Elsewhere, the biggest mover of the day was the South African rand rebounding strongly against its major counterparts due to increased risk appetite following Moody reaffirming Spain’s investment grade credit rating. The commodity backed currencies performed well in general due to this renewed global appetite for risk with the Australian dollar, New Zealand dollar and Canadian dollar all strengthening. The Canadian dollar was particularly strong following the better than forecast housing data coming out of the US which helped the currency gain against its biggest trading partner as economic sentiment increased. Chinese GDP data was released over night and Swiss trade balance will be the main other piece of data released in what is a fairly quiet day on the data front; with most eyes firmly on the first day of the EU Summit. 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, strengthening to a one month high against the US dollar of 1.3120 and peaking at 1.2285 against sterling before weakening off slightly as the day progressed. This shift can be largely attributed to Moody’s (one of the big three credit rating agencies) announcement that Spain was keeping its investment grade credit rating which eased concerns surrounding the country and the region in general. The EU Economic Summit starts today, where the heads of state will meet to discuss plans to create a closer fiscal union as well as discussing the on-going problems surrounding Greece and Spain in particular. Any news leaked from these meetings could cause a lot of volatility in the markets; furthermore, the markets will also focus on the benchmark 10-year Spanish bond auction as the EU Summit and Moody’s announcement draws more attention to it than normal, so call in now for the latest news and changes in the euro rate.
The US dollar was one of the worst performing currencies yesterday, weakening against all other majors yesterday due to the general increase in global risk appetite and following new housing data in the US revealing an increase to a 4 year high in September. This positive data will have a ripple effect on the US economy, damping demand for safer assets. Out today, we have the weekly release of data showing the change in the number of new people claiming unemployment benefits, whilst economic sentiment figures from US manufactures will also be announced. Please call in now for the latest news and a live update
Elsewhere, the biggest mover of the day was the South African rand rebounding strongly against its major counterparts due to increased risk appetite following Moody reaffirming Spain’s investment grade credit rating. The commodity backed currencies performed well in general due to this renewed global appetite for risk with the Australian dollar, New Zealand dollar and Canadian dollar all strengthening. The Canadian dollar was particularly strong following the better than forecast housing data coming out of the US which helped the currency gain against its biggest trading partner as economic sentiment increased. Chinese GDP data was released over night and Swiss trade balance will be the main other piece of data released in what is a fairly quiet day on the data front; with most eyes firmly on the first day of the EU Summit. 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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