Sterling
Sterling had a mixed day, with volatility high in the early hours of the morning with the Eurogroup meeting dragging on, and no distinct resolution to the Greek situation forthcoming. The Monetary Policy Committee meeting minutes surprised some economists as the members voted 8-1 against an increase in quantitative easing with one member voting for a £25 billion increase, when most people had been predicting a 9-0 vote. The Public sector net borrowing figures releases showed that public finances are in a grim state of affairs, with public borrowing unexpectedly £2.7 billion higher than this time a year ago. There is very little data released from the UK today and with the US markets shut, the global focus will remain on Europe. Please call in to get a detailed update from your trader.
Euro
After taking a hit over night, dropping 0.5% in a few hours, euro rallied to regain those losses during the day. The European finance ministers failed to come to an agreement over how to finance the next tranche of Greek bailout, and that a new meeting is to take place next week which caused the euro to initially weaken. These fears were allayed somewhat as German Finance Minister explained that it was only technical issues that prevented a final agreement. What these “technical issues” actually are, is another question altogether. Today could see some volatility as markets react to French and German manufacturing data released in the morning. The EU Economic Summit also starts today, so expect markets to remains nervous as traders await announcements on the contentious issue of the EU budget, any whisper of David Cameron using the British veto could hit prices hard. Call in now to get the latest price.
US dollar
The US dollar had a strong start to the day as risk appetite dominated the market due to the lack of resolution on the Greek problem from the Eurogroup meetings. On the data front, weekly jobless claims data and manufacturing Purchasing Managers' Index (PMI) came in above market expectations; however, figures released showed that consumer sentiment has dropped from last month. It is the Thanksgiving bank holiday in the US today, meaning the US markets are shut and no data will be released? As a result, trading volumes will be much lower than usual. Call in now to speak to a trader.
Worldwide
Elsewhere, the biggest mover yesterday was the South African rand, losing significant ground against major peers as continued speculation about a Greek bailout dampened risk-appetite. With European exports key to the nation's economy, the troubled outlook saw the rand fall to a 3-year low versus the US dollar, retreating to just over 9.00; the lowest since April 2009. It was also a difficult day for the Australian and New Zealand dollars; with increased risk aversion reducing the demand for such higher-yielding assets. The situation was worsened on the news that declining Japanese imports were likely to affect output in the both countries which also caused the Japanese yen to be sold off sharply. Call in now to see if the situation improves and to get a live rate.
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