Sterling
Yesterday was a strong day in general for sterling apart from holding steady against the euro, gaining ground against the majority of its major trading peers and reaching a one month high of 1.61 against the US dollar. Manufacturing Purchase Manager Index (PMI) data came out better than forecast - although it still showed that British industry wasn't expanding - at 49.1, the highest since September, increasing demand for sterling. Today we will see the release of construction PMI data, forecast to see a slight decline below last month's figure of 50.9. The main focus though will be on the budget announcement on Wednesday where details of government growth expectations will be put forward which will be closely scrutinized by investors. It is key that the UK maintains its AAA credit rating as this allows it to fund its debt at much lower interest rates than say Spain and Italy. Call in now to see if sterling continues to improve and to get a live rate.
Euro
Yesterday was a strong day in general for sterling apart from holding steady against the euro, gaining ground against the majority of its major trading peers and reaching a one month high of 1.61 against the US dollar. Manufacturing Purchase Manager Index (PMI) data came out better than forecast - although it still showed that British industry wasn't expanding - at 49.1, the highest since September, increasing demand for sterling. Today we will see the release of construction PMI data, forecast to see a slight decline below last month's figure of 50.9. The main focus though will be on the budget announcement on Wednesday where details of government growth expectations will be put forward which will be closely scrutinized by investors. It is key that the UK maintains its AAA credit rating as this allows it to fund its debt at much lower interest rates than say Spain and Italy. Call in now to see if sterling continues to improve and to get a live rate.
Euro
The euro performed well yesterday as the 17-nation currency continues to strengthen as news spread through the markets that Greece is preparing to buy back up to €10 billion worth of government securities which helped alleviate concerns that the debt crisis is worsening. The Europe wide Manufacturing PMI data which was released confirmed that the sector continues to contract with the figures coming out at 46.2 for November. The most significant data released from Europe today will show the change in Spanish unemployment and traders are sure to play close attention to this release with Spanish unemployment now at 25%. Please call in to get a detailed update from your trader.
US dollar
The US dollar struggled yesterday as Manufacturing PMI results were lower than expected, showing a contraction on last month's figures and posting the worst figures since 2009. Nervousness over the impending fiscal cliff also weighed on prices as the dollar touched a 6 week low against the euro. With little data expected today, expect the lower value to consolidate as lawmakers continue to debate the way forward and help a lower risk sentiment for the euro. As sterling buys more dollar than any time in over a month, get in touch to lock in a rate..
Worldwide
Elsewhere, the biggest mover of the day was the Indian rupee, losing significant ground against most major currencies, and falling as much a 1.4% versus sterling. It was a tough day for higher yielding currencies in general, with the Australian and New Zealand dollars both struggling; as an underlying sense of risk-aversion in the global economy decreased demand for riskier assets. Overnight saw Australia cut its interest rate to 3% , down from the previous of 3.25% which amplified the Australian dollar sell off yesterday. Late on today we will have the interest rate decision from the Bank of Canada which is widely expected to be kept on hold at 1%. Call in now to see how these central bank decisions impact their respective currencies and to get a live price from your trader.
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