Sterling
US dollar
The US dollar had a poor start to the week, slipping against both sterling and the euro as the US markets focused on the start of the fourth quarter earnings season with little else released to influence the markets. The US dollar strengthened on Tuesday as risk aversion began to drive the market, partly due to the message from the Bipartisan Policy Centre which said the US government will struggle to pay its bills by mid-February, meaning there is less time to solve the spending cuts problem than expected. Little data has been released this week apart from the weekly change in the number of people claiming unemployment benefits which rose by more than expected. The US trade balance data released today and will closely watched by traders. On a final note, the resolution to the highly topical fiscal cliff situation now seems to have been somewhat forgotten as the markets focus on other problems that lie ahead. Call in now to talk to your trader and get a live market quote.
Elsewhere, the South African rand has had a very poor week as protesters have caused more problems, this time for farm owners. The rand bucked the trend of other commodity backed currencies like the Australian and New Zealand dollar that have broadly gained. The Indian rupee gained yesterday as traders bet on the central bank cutting interest rates later this month as the economy appears to recover. Today, consumer price index data is released from both China and Switzerland. This important inflation indicator has come in worse than expected for the past two months from both countries, so good news could give a boost to prices. Get in touch now for a price.
Sterling has had a mixed week, falling to 1.2175 against the euro yesterday, very close to an eight month low; but climbing to 1.6160 against the US dollar. Sterling struggled in the early part of the week reaching a one month low against the US dollar as talk of a triple drip recession rippled through the markets following comments from David Cameron conceding that the UK was facing tough times ahead. Yesterday the Bank of England voted as expected to keep interest rates on hold at 0.5% and current levels of quantitative easing maintained. Today will see the release of important manufacturing production data which should give a strong indication of the relative strength of the sector as a whole. With sterling struggling against the euro and recovering versus the US dollar, call in now to speak to your trader to see how these trends may change in the upcoming days and weeks.
Euro
After poor economic data weighed on the euro in the first half of the week, it enjoyed a particularly strong day yesterday. This strength followed Mario Draghi, president of the European Central Bank, optimism about the economic future of the Eurozone and said that the decision to hold interest rates at 0.75% was a unanimous one. The euro strengthened by over 1.2% against the dollar, and 0.65% against sterling on the back of the news. There is little data released today, but after Spanish government bonds value surged yesterday reducing their effective interest rates, traders will be more interested than usual in the Italian bond auction this afternoon. Decreasing bond yields would mean cheaper borrowing costs for the Italian government as well, a strong sign that Mr. Draghi's optimism is not unfounded and that recovery is on its way. Get in touch now for the latest news, and up to the second rates. The US dollar had a poor start to the week, slipping against both sterling and the euro as the US markets focused on the start of the fourth quarter earnings season with little else released to influence the markets. The US dollar strengthened on Tuesday as risk aversion began to drive the market, partly due to the message from the Bipartisan Policy Centre which said the US government will struggle to pay its bills by mid-February, meaning there is less time to solve the spending cuts problem than expected. Little data has been released this week apart from the weekly change in the number of people claiming unemployment benefits which rose by more than expected. The US trade balance data released today and will closely watched by traders. On a final note, the resolution to the highly topical fiscal cliff situation now seems to have been somewhat forgotten as the markets focus on other problems that lie ahead. Call in now to talk to your trader and get a live market quote.
Worldwide
Elsewhere, the South African rand has had a very poor week as protesters have caused more problems, this time for farm owners. The rand bucked the trend of other commodity backed currencies like the Australian and New Zealand dollar that have broadly gained. The Indian rupee gained yesterday as traders bet on the central bank cutting interest rates later this month as the economy appears to recover. Today, consumer price index data is released from both China and Switzerland. This important inflation indicator has come in worse than expected for the past two months from both countries, so good news could give a boost to prices. Get in touch now for a price.
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