Sterling struggled against the majority of currencies this week and in particularly against the euro dropping to a four month low of 1.2275. It did reach 1.6175 against the US dollar as risk appetite drove the market but these gains have since been reversed. Inflation has reached its lowest level for almost 3 years in the UK dropping to 2.2% which put pressure on sterling. On a positive note unemployment data released showed that 4000 less people has applied for unemployment benefits during the past month and the overall unemployment rate had dropped by more than expected to 7.9%. Moreover, retail sales data released yesterday was better than expected with last month's figure revised up to -0.1% and this month's figure showing growth of 0.6% when only 0.4% had been expected. Public Sector Net Borrowing figures will be the key UK economic data released today, but, the main focus will be on the EU Economic Summit and any significant news that comes from it. So please call in for a price and to discuss the markets with your trader.
The euro performed well all week reaching fresh highs of 1.31 against the US dollar and 1.2275 against sterling thanks mainly due to increased market confidence in the Eurozone through a combination of improved German economic sentiment and increased speculation of a Spanish bailout. Furthermore, Moody’s (one of the big three credit rating agencies) announced that Spain was keeping its investment grade credit rating, which eased concerns surrounding the country and the region in general. Yesterday the EU summit started and will run through today with Germany and France, the two main powers of Europe having clashed over greater EU control of national budgets moving towards a single banking supervisor. Also in the near-bankrupt Greece, police clashed with protestors during the strike which has brought the country to a standstill. The markets will keep a close eye on the EU summit today and any significant news could cause a lot of volatility, so call in now for the latest news and changes in the euro rate.
The US dollar has weakened across the board this week as risk appetite increased following news released from Europe; but, strengthened on Thursday due to the uncertainty surrounding the EU Economic Summit and with the manufacturing data that was released being considerably better than anticipated. Other data released this week showed retail sales had increased by 1.1% in September, beating all expectations. Similarly new housing data in the US revealed an increase to a four year high in September which contrasted with worse than forecast unemployment data which showed an increase in the number of people applying for unemployment related benefits. Reports of a potential US credit rating downgrade are likely to hit hard as Pacific Investment Management, which runs one of the world's largest bond fund, announced that this is likely by the end of the year. Out today we have the release of home sales data – a leading indicator of economic health, so we could see volatility following the release and the markets will hope for a positive release following the strong housing data released earlier in the week. Please call in now for the latest news and a live update.
Elsewhere, the Japanese yen has been one of the worst performers this week, struggling against its major counterparts as risk appetite has been the main driver in the market. Chinese GDP data confirmed that whilst the world’s second largest economy is still growing but that the growth rate continues to slow down. The South African rand has continued to fall following Standard & Poor’s (one of the big three credit rating agencies) cut the countries credit rating amidst industrial action taking place across the country. The Canadian dollar also struggled due to the Governor of the Bank of Canada hinting that he may look to lower Canada’s growth forecast; as a result, today’s inflation data could play a large part in the Canadian dollars relative strength. 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 all week reaching fresh highs of 1.31 against the US dollar and 1.2275 against sterling thanks mainly due to increased market confidence in the Eurozone through a combination of improved German economic sentiment and increased speculation of a Spanish bailout. Furthermore, Moody’s (one of the big three credit rating agencies) announced that Spain was keeping its investment grade credit rating, which eased concerns surrounding the country and the region in general. Yesterday the EU summit started and will run through today with Germany and France, the two main powers of Europe having clashed over greater EU control of national budgets moving towards a single banking supervisor. Also in the near-bankrupt Greece, police clashed with protestors during the strike which has brought the country to a standstill. The markets will keep a close eye on the EU summit today and any significant news could cause a lot of volatility, so call in now for the latest news and changes in the euro rate.
The US dollar has weakened across the board this week as risk appetite increased following news released from Europe; but, strengthened on Thursday due to the uncertainty surrounding the EU Economic Summit and with the manufacturing data that was released being considerably better than anticipated. Other data released this week showed retail sales had increased by 1.1% in September, beating all expectations. Similarly new housing data in the US revealed an increase to a four year high in September which contrasted with worse than forecast unemployment data which showed an increase in the number of people applying for unemployment related benefits. Reports of a potential US credit rating downgrade are likely to hit hard as Pacific Investment Management, which runs one of the world's largest bond fund, announced that this is likely by the end of the year. Out today we have the release of home sales data – a leading indicator of economic health, so we could see volatility following the release and the markets will hope for a positive release following the strong housing data released earlier in the week. Please call in now for the latest news and a live update.
Elsewhere, the Japanese yen has been one of the worst performers this week, struggling against its major counterparts as risk appetite has been the main driver in the market. Chinese GDP data confirmed that whilst the world’s second largest economy is still growing but that the growth rate continues to slow down. The South African rand has continued to fall following Standard & Poor’s (one of the big three credit rating agencies) cut the countries credit rating amidst industrial action taking place across the country. The Canadian dollar also struggled due to the Governor of the Bank of Canada hinting that he may look to lower Canada’s growth forecast; as a result, today’s inflation data could play a large part in the Canadian dollars relative strength. 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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