Sterling
Sterling struggled yesterday against the higher yielding currencies whilst staying relatively range bound against the US dollar and the euro. Yesterday, one of the members of the Bank of England suggested that the central bank had not ruled out an increase in quantitative easing if it was necessary to boost the UK’s economy. Data released from the UK showed that lending to individuals fell by £0.3 billion in October, but, on a more positive note the number of mortgages approved reached a 10 month high. The Governor of the Bank of England is speaking today and we will also see the release of the central bank's financial stability support, both of which should provide some insight into the state of the UK’s economy. Please call in to get a detailed update from your trader.
Euro
The euro fell broadly yesterday, as risk appetite decreased due to worries surrounding how a deal on Greece is going to be implemented, as well as requiring further assistance beyond the new aid package. Germany is preparing to vote on this new deal for Greece, with the German Finance Minister open to providing further support. However, the cautionary approach in dealing with the crisis continues to dampen the appeal of the single currency. The German preliminary consumer price index figures came out as expected showing a small decline but the money supply figures came out higher than forecast. Today we see the release of German unemployment data as well as the President of the Deutsche Bundesbank is also speaking. Given the importance of Germany to the Euro zone these will be carefully scrutinized and if anything unexpected occurs volatility is likely to be seen. Call in now.
US dollar
The US dollar struggled yesterday as concerns about the impending fiscal cliff returned to the fore. The co-chairman of Obama's 2010 fiscal commission has previously said he sees only a one in three chance that a deal will be reached between the president and Congress in time. The weakening was exaggerated by weaker than expected home sales results. Today sees the release of further home sales data as well as quarterly GDP data which will be very influential. Forecasts are for growth of 2.8%, if they are right, expect dollar to regain the lost ground, however the downward trend will surely continue if this figure isn't met. Get in touch now to take advantage of the most up to date price.
Worldwide
Elsewhere, the biggest mover yesterday was the Japanese yen, reaching a one week high versus the US dollar, and managing to snap a prolonged decline against its major trading partners. News coming out of the US that an agreement on how to handle the so-called fiscal cliff remains someway off, led to a significant increase in the demand for traditionally safer assets. The Australian dollar remained subdued following Tuesday's decline, as speculation remains rife that the economic outlook is not as healthy as previously thought dampened appetite for the higher yielding currency. Overnight we saw retail data released from Japan, along with an indication of business confidence from New Zealand. Call in now to see how this has influenced the markets and to get a live rate.
Sterling struggled yesterday against the higher yielding currencies whilst staying relatively range bound against the US dollar and the euro. Yesterday, one of the members of the Bank of England suggested that the central bank had not ruled out an increase in quantitative easing if it was necessary to boost the UK’s economy. Data released from the UK showed that lending to individuals fell by £0.3 billion in October, but, on a more positive note the number of mortgages approved reached a 10 month high. The Governor of the Bank of England is speaking today and we will also see the release of the central bank's financial stability support, both of which should provide some insight into the state of the UK’s economy. Please call in to get a detailed update from your trader.
Euro
The euro fell broadly yesterday, as risk appetite decreased due to worries surrounding how a deal on Greece is going to be implemented, as well as requiring further assistance beyond the new aid package. Germany is preparing to vote on this new deal for Greece, with the German Finance Minister open to providing further support. However, the cautionary approach in dealing with the crisis continues to dampen the appeal of the single currency. The German preliminary consumer price index figures came out as expected showing a small decline but the money supply figures came out higher than forecast. Today we see the release of German unemployment data as well as the President of the Deutsche Bundesbank is also speaking. Given the importance of Germany to the Euro zone these will be carefully scrutinized and if anything unexpected occurs volatility is likely to be seen. Call in now.
US dollar
The US dollar struggled yesterday as concerns about the impending fiscal cliff returned to the fore. The co-chairman of Obama's 2010 fiscal commission has previously said he sees only a one in three chance that a deal will be reached between the president and Congress in time. The weakening was exaggerated by weaker than expected home sales results. Today sees the release of further home sales data as well as quarterly GDP data which will be very influential. Forecasts are for growth of 2.8%, if they are right, expect dollar to regain the lost ground, however the downward trend will surely continue if this figure isn't met. Get in touch now to take advantage of the most up to date price.
Worldwide
Elsewhere, the biggest mover yesterday was the Japanese yen, reaching a one week high versus the US dollar, and managing to snap a prolonged decline against its major trading partners. News coming out of the US that an agreement on how to handle the so-called fiscal cliff remains someway off, led to a significant increase in the demand for traditionally safer assets. The Australian dollar remained subdued following Tuesday's decline, as speculation remains rife that the economic outlook is not as healthy as previously thought dampened appetite for the higher yielding currency. Overnight we saw retail data released from Japan, along with an indication of business confidence from New Zealand. Call in now to see how this has influenced the markets and to get a live rate.
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