Sterling
Surprisingly yesterday turned out to be somewhat of a muted day for sterling, despite the release of key unemployment data and David Cameron's much anticipated press speech regarding the UK's current stance on EU membership. As had been widely expected, Cameron outlined his stance on a potential referendum in 2017, however support for continued membership remains strong across the continent, helping to minimise any detrimental effect UK-EU severance could have upon sterling. With the Monetary Policy Committee Meeting Minutes coming out as expected yesterday - no votes in favour of a change to interest rates and one member voting in favour of increasing the current the level of quantitative easing. Out today we have the number of new mortgages approved and figures showing the relative level of current sales from a survey of retail and wholesale companies. Traders will now turn their focus to Friday's fourth quarter GDP release which will give a clear insight into the current level of economic health in the UK. Call in now for the latest news and to get a live price from your trader.
The euro struggled yesterday, falling against the US dollar - reaching a week low of 1.3302 - whilst also weakening off slightly against sterling. The European Central Bank President suggested late on Tuesday night that the worse of the region's debt crisis may be over. Euro-are wide services and manufacturing Purchasing Managers' Index (PMI) data released today will be the main news on the agenda with the main focus on the German Manufacturing announcement. Call in now to find out the impact of this data and for a live market quote.
Euro
It was another mixed day for the US dollar yesterday as price action took its lead from data released across Europe. Yesterday evening the House of Representative voted in favour of suspending the Debt ceiling limit until May 19 to avoid a default in the short term. This bill now needs to get passed to the Senate for approval. Today sees the release of the weekly unemployment claims report which traders will pay close attention to as it shows the current labour-market conditions that are highly correlated with consumer spending and furthermore, significant due to the Federal Banks recent stance that monetary policy will remain ultra-loose until the labour sector recovers. Call in today for a live rate from your trader.
Elsewhere, the biggest mover of the day was Canadian dollar, losing ground versus its major trading peers on news from the Bank of Canada that a planned increase in interest rates would have to be delayed as economic growth proves slower than previously anticipated. A 0.3% cut to the central bank's growth forecast saw the Canadian dollar fall to a two month low versus its US counterpart and saw sterling rise to a week-high at 1.5862. It was also a tough day for the Australian dollar falling against all but one of its major partners, after key Consumer Price Index data came out slower than forecast at 0.2%, suggesting the Reserve Bank of Australia may be inclined to further cut interest rates. The main data release tomorrow focuses on China, with the latest flash Manufacturing data released in the early hours of this morning. Call in now for an update and to get a live price.
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