Sterling
Yesterday showed that sometimes it is better to travel than arrive. Agreement was finally reached on releasing the next round of Greek bailout funds of €44 billion but the effect on the euro was somewhat muted. In fact sterling performed better against most of the other major currencies yesterday even recovering back to 1.24 against the euro. The revised GDP data released yesterday confirmed that the UK's economy has excited the double-dip recession, with the revised figures matching the preliminary data showing GDP increased by 1% in the third quarter and this helped sterling to strengthen. There was also speculation that the new agreement terms set out by European finance ministers are too lenient and will fail to stem Greece's debt crisis. There is no significant data being released from the UK today; as a result, the focus will be on Greece and the worries surrounding the looming fiscal-cliff in the US. Please call in to get a detailed update from your trader.
Euro
The euro struggled yesterday despite a deal being struck on Monday night by the Eurozone finance ministers to ease the strict measures that are in place for Greece to receive the next tranche of its bailout funds. Many economists expected this news to cause the euro to strengthen; however, the opposite happened. This muted response from the markets suggests that traders are unimpressed by the actions taken at the Eurogroup meetings and that investors remain concerned that this new deal for Greece is not the solution; as a result, the euro was sold off. There is little significant data out from Europe today; but, any more news or rumours surrounding Greece could cause rapid price action. Call in now to see how this affects the market.
US dollar
The US dollar remained fairly range bo und against most of the other majors yesterday despite positive data coming out of the US. We saw the demand for durable goods on order in October increase the most in five months, along with consumer confidence reaching a four year high in November. Today new home sales figures will be released and will give us a good insight into the health of the US economy, resulting in its wide reaching effect. Get in touch now to lock in a price.
Worldwide
Elsewhere, it was a mixed day yesterday for many of the higher-yielding currencies. News that Eurozone ministers had finally reached an agreement over the next tranche of Greek bailout led to an increase in risk appetite, resulting in the Australian dollar touching a two month high on the back of the news. It was also good news for the New Zealand dollar, managing to snap its decline as data suggested that the Asian market is not as troublesome as previously thought. However belief later in the day that the Greek debt deal is not as robust as first thought led to a sense of risk-aversion in the markets, undoing many of the gains seen earlier in the day. The South African rand also struggled as news the nation's debt will be included in the World Government Bond Index led to belief that the rand will remain one of the most volatile of currencies. Call in now to speak to a trader.
Yesterday showed that sometimes it is better to travel than arrive. Agreement was finally reached on releasing the next round of Greek bailout funds of €44 billion but the effect on the euro was somewhat muted. In fact sterling performed better against most of the other major currencies yesterday even recovering back to 1.24 against the euro. The revised GDP data released yesterday confirmed that the UK's economy has excited the double-dip recession, with the revised figures matching the preliminary data showing GDP increased by 1% in the third quarter and this helped sterling to strengthen. There was also speculation that the new agreement terms set out by European finance ministers are too lenient and will fail to stem Greece's debt crisis. There is no significant data being released from the UK today; as a result, the focus will be on Greece and the worries surrounding the looming fiscal-cliff in the US. Please call in to get a detailed update from your trader.
Euro
The euro struggled yesterday despite a deal being struck on Monday night by the Eurozone finance ministers to ease the strict measures that are in place for Greece to receive the next tranche of its bailout funds. Many economists expected this news to cause the euro to strengthen; however, the opposite happened. This muted response from the markets suggests that traders are unimpressed by the actions taken at the Eurogroup meetings and that investors remain concerned that this new deal for Greece is not the solution; as a result, the euro was sold off. There is little significant data out from Europe today; but, any more news or rumours surrounding Greece could cause rapid price action. Call in now to see how this affects the market.
US dollar
The US dollar remained fairly range bo und against most of the other majors yesterday despite positive data coming out of the US. We saw the demand for durable goods on order in October increase the most in five months, along with consumer confidence reaching a four year high in November. Today new home sales figures will be released and will give us a good insight into the health of the US economy, resulting in its wide reaching effect. Get in touch now to lock in a price.
Worldwide
Elsewhere, it was a mixed day yesterday for many of the higher-yielding currencies. News that Eurozone ministers had finally reached an agreement over the next tranche of Greek bailout led to an increase in risk appetite, resulting in the Australian dollar touching a two month high on the back of the news. It was also good news for the New Zealand dollar, managing to snap its decline as data suggested that the Asian market is not as troublesome as previously thought. However belief later in the day that the Greek debt deal is not as robust as first thought led to a sense of risk-aversion in the markets, undoing many of the gains seen earlier in the day. The South African rand also struggled as news the nation's debt will be included in the World Government Bond Index led to belief that the rand will remain one of the most volatile of currencies. Call in now to speak to a trader.
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