Sterling was one of the stand out performers yesterday, making good gains across the board as markets bet on positive GDP data being released today. Furthermore, sterling was buoyed by the comments made by the Governor of the Bank of England on Tuesday night who seemed to indicate that he would hold back on another round of quantitative easing unless it was really necessary. This positive move for sterling came despite a raft of poor data being released by the Confederation of British Industry (CBI). Analysts expect good news from the GDP data released today with current estimates suggesting growth of 0.6%, however, if the figures come in below expectations expect sterling to fall sharply. The deputy Governor of the Bank of England is speaking today and markets will react swiftly to any indication he gives as to the future of monetary policy in the UK. So please call in for a price and to discuss the markets with your trader.
The euro was one of the worst performers yesterday as both French and German Flash Manufacturing PMI came out worse than expected. Other data released showed that German business confidence has fallen to the lowest level since February 2010 causing further euro weakness. Although the French PMI showed slightly less of a decline from September's three and a half year low, it still came in worse than forecast. Eyes were on the President of the European Central Bank (ECB) speech, who revealed that the Troika had made no official proposals yet on Greece. This has impacted trader’s confidence and has caused volatility on the euro. There is very little data out of Europe today; but, global risk sentiment is taking its lead from what is happening in Europe at present; as a result, expect any unexpected news to have a knock on effect across the market. Call in now for the latest news and changes in the euro rate.
The US dollar had a mixed day yesterday as sterling and the Australian dollar were the best performers as the markets remained nervous in the lead up to the last Federal Open Market Committee (FOMC) meeting before the November presidential elections. On the data front, the main release out of the US showed that the number of new homes sold in September rose by 5.7% which was much more than initially anticipated. Out today we have the release of data showing the number of homes pending sale, figures showing the change in number of new people claiming unemployment benefits and figures depicting the change in the total value of new purchase orders placed with manufacturers for durable goods. Please call in now for the latest news and a live update.
Elsewhere, the Australian dollar had a strong day yesterday, gaining ground against all its major trading partners as faster than estimated inflation eased expectations of a cut in interest rates. Furthermore the slight strengthening in Chinese manufacturing allowed the Australian dollar to climb against its peers. It was a tough day for the South African rand as it continued to weaken against its major peers, despite improved inflation data reducing the likelihood of the central bank cutting interest rates. The Canadian dollar had a mixed day, remaining fairly range bound versus the US dollar and euro, whilst losing ground against sterling. Overnight we saw the release of the Reserve Bank of New Zealand's interest rate decision; but, there is very little other data out today.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Posts
No comments:
Post a Comment