Sterling has struggled this week following comments from the Bank of England’s suggesting growth will be tepid over the next couple of years due to a struggling export market. Inflation data came out higher than expected with a reading of 2.7% underlining the “pinch” that consumers across the country are experiencing. More bad news came as the number of people claiming unemployment benefits was much greater than anticipated and retail sales dropped sharply by 0.8% from last month 0.5% growth. Moody’s (one of the big three credit rating agencies) also suggested that the UK could have its credit rating downgraded next year if the economy continues to struggle. Please call in to get a detailed update from your trader.
It has been a mixed week for the euro this week, with Greek uncertainty weighing heavily on prices through the early part of the week. The tide turned on Tuesday, however, and the euro strengthened despite poor Economic Sentiment data from Germany. The euros improvement continued through the week, backed up with some good news from France and Germany, but it is hard to know how much longer it will last. Yesterday Eurostat (the European Statistics Office), announced that the Eurozone saw a second quarter of decrease and is officially in a double dip recession. Furthermore, the IMF is now expected to reach an agreement over Greece next week. Get in touch now to lock in a price.
The US dollar has remained fairly range bound this week off the back of some poor data being released. Hurricane Sandy was the main influencing factor in the drop in US retail sales; however, the unexpected decrease in the produce price index and increase in unemployment claims highlights the US recovery has still some way to go. We saw a 0.1% increase in the consumer-price index indicating that US inflation is in line with the economy. There is no significant data released today; but, the markets remain nervous due to the problems in Europe, call in now to reserve a rate of exchange,
Elsewhere, the Japanese yen has struggled this week; losing ground against all major peers. Expectations that next month's Japanese elections will lead to more aggressive monetary easing led to the yen hitting a 6-month low versus the US dollar. The Australian dollar also struggled, falling against most of its biggest trading partners after the country's Reserve Bank increased sales of the dollar to other foreign central banks. The South African rand fell for a fifth day, reaching the lowest level in over 5 weeks as investors interest in the currency dropped as violent protests erupted in the Western Cape. Call in now to see if the decline continues and to get a live rate.
It has been a mixed week for the euro this week, with Greek uncertainty weighing heavily on prices through the early part of the week. The tide turned on Tuesday, however, and the euro strengthened despite poor Economic Sentiment data from Germany. The euros improvement continued through the week, backed up with some good news from France and Germany, but it is hard to know how much longer it will last. Yesterday Eurostat (the European Statistics Office), announced that the Eurozone saw a second quarter of decrease and is officially in a double dip recession. Furthermore, the IMF is now expected to reach an agreement over Greece next week. Get in touch now to lock in a price.
The US dollar has remained fairly range bound this week off the back of some poor data being released. Hurricane Sandy was the main influencing factor in the drop in US retail sales; however, the unexpected decrease in the produce price index and increase in unemployment claims highlights the US recovery has still some way to go. We saw a 0.1% increase in the consumer-price index indicating that US inflation is in line with the economy. There is no significant data released today; but, the markets remain nervous due to the problems in Europe, call in now to reserve a rate of exchange,
Elsewhere, the Japanese yen has struggled this week; losing ground against all major peers. Expectations that next month's Japanese elections will lead to more aggressive monetary easing led to the yen hitting a 6-month low versus the US dollar. The Australian dollar also struggled, falling against most of its biggest trading partners after the country's Reserve Bank increased sales of the dollar to other foreign central banks. The South African rand fell for a fifth day, reaching the lowest level in over 5 weeks as investors interest in the currency dropped as violent protests erupted in the Western Cape. Call in now to see if the decline continues and to get a live rate.
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