Sterling
US dollar
In spite of the great range of data released yesterday in the US, the US dollar traded fairly steadily. It strengthened around lunchtime, falling below 1.60 against sterling as data showed that far more foreigners than Americans bought US debt last month than had been expected - indicating a demand for the currency, but settled back down in the afternoon. Key inflation data from the US showed that the Consumer Price Index dropped to 1.7% whilst the Core reading remained unchanged at 1.9%. The key data releases today include construction permits - an indicator of future construction activity, and unemployment data. Analysts are forecasting a small drop in unemployment claims. With the increased importance put on unemployment after policy makers linked it to monetary policy, if the drop exceeds economic forecasts expect markets to react strongly. Get in touch for the latest news and up to the second prices.
Elsewhere, the Japanese yen strengthened for a second day running as Russian politicians bemoaned the widespread intention to deliberately weaken exchange rates saying that the world is on the brink of a "currency war". A key Japanese trading partner, Australia, saw its dollar weaken as Japanese consumer confidence fell, the New Zealand dollar suffered a similar drop. Today sees two releases on unemployment data in Australia, forecasts expect a small increase, any decline will be positive for the currency. Call in now for a live price and a market update.
Sterling weakened across the board yesterday following a negative World Bank Report, which cut its global growth forecasts from 3% to 2.4% for 2013 year boosting demand for safe haven currencies. This negativity was mainly due to the high levels of unemployment and low business confidence in developed nations. Sterling's depreciation against the US dollar continued, with rates dropping below the 1.60 mark for the first time since November, whilst remaining close to the nine month low against the euro. All eyes are on David Cameron for the time being as he prepares to reveal his plans on repatriating powers from the European Union - this uncertainty about the UK's future within the European Union is hurting sterling. There is very little in terms of significant data released for the UK today; but, call in now to see if sterling will continue to fall.
Euro
The euro strength continued yesterday as it proceeded to gain ground versus sterling challenging a ten month high and the psychological resistance level of 1.20. The Euro zone currency did see a slight decline earlier in the day, as news that Luxembourg's Prime Minister (who leads the euro-area finance ministers) suggested a dramatically strengthening euro may in fact be detrimental to the economic situation; although this blip was fairly short lived, as overall positive economic sentiment proved to be the main driver of the currency. It was a relatively quiet day in terms of data being released from the Eurozone, although we did see key Consumer Price Index (CPI) Inflation data remain constant at 2.2%. Today sees very little data released from the Eurozone. Please call in now for the latest information and to get a live rate.In spite of the great range of data released yesterday in the US, the US dollar traded fairly steadily. It strengthened around lunchtime, falling below 1.60 against sterling as data showed that far more foreigners than Americans bought US debt last month than had been expected - indicating a demand for the currency, but settled back down in the afternoon. Key inflation data from the US showed that the Consumer Price Index dropped to 1.7% whilst the Core reading remained unchanged at 1.9%. The key data releases today include construction permits - an indicator of future construction activity, and unemployment data. Analysts are forecasting a small drop in unemployment claims. With the increased importance put on unemployment after policy makers linked it to monetary policy, if the drop exceeds economic forecasts expect markets to react strongly. Get in touch for the latest news and up to the second prices.
Worldwide
Elsewhere, the Japanese yen strengthened for a second day running as Russian politicians bemoaned the widespread intention to deliberately weaken exchange rates saying that the world is on the brink of a "currency war". A key Japanese trading partner, Australia, saw its dollar weaken as Japanese consumer confidence fell, the New Zealand dollar suffered a similar drop. Today sees two releases on unemployment data in Australia, forecasts expect a small increase, any decline will be positive for the currency. Call in now for a live price and a market update.
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