Sterling
The US dollar had a poor day on Friday, dropping quite heavily against the majority of its trading partners. This was in part down to the release of the Core CPI inflation data, showing the change in the price of goods and services purchased by consumers remains contained, meaning it is less likely that the central bank will tighten monetary policy in the near term. Other data released showed that both consumer sentiment figures and the empire state manufacturing index came in short of market estimates. This week sees the release of a few important pieces of data. On Tuesday we see the release of building permits statistics - a good gauge for the future of the construction industry. On Wednesday we have the monetary policy decision from the Federal Reserve. No change is expected, but the comments that follow on the quarterly economic projections, showing the predicted levels for inflation and economic growth is likely to cause a reaction in the markets. Other data released this week includes existing home sales, weekly unemployment claims and the Philly manufacturing index. It is set up to be an interesting week for the US dollar, so get in touch for the latest rates.
Worldwide
Elsewhere, the Polish zloty was one of the worst performing currencies on Friday after data released showed that growth was slowing by more than oringinal forecast. In Japan, parliament has now finally approved the three men to head up the Bank of Japan all of who favour loose monetary policy. This weeks main releases includes the minutes from the latest monetary policy meeting from the Reserve Bank of Australia, GDP data from New Zealand and retail sales figures from Canada. Call in now for a live quote.
Sterling performed relatively well on Friday following comments from the Governor of the Bank of England who said that the central bank is not actively trying to devalue sterling, furthermore stating that he does not think that it will drop much further. It is an extremely important week for sterling with two hugely influential releases in the form of the Chancellors budget and the minutes from the latest Bank of England Monetary Policy Committee (MPC) meeting. The market will look to the meeting minutes to see if any more of the MPC members voted in favour of increasing the current levels of quantitative easing, whilst traders will pay particularly close attention to the Chancellors budget. We also have key inflation data, retail sales figures and statistics showing the change in the number of people claiming unemployment related benefits. With so much happening in the UK this week, there is a high probability of increased volatility and the potential for dramatic downside movements should we see a raft of negativity. Call in now to speak to your trader and to see what you can do to protect yourself from adverse market movement.
Euro
The euro has been sold off heavily over the weekend, dropping against all of it major trading partners following the news that the EU and IMF have imposed a one-off levy on all bank customers in Cyprus in the region of 6.75-10% in return for the 10 billion euro bailout. This has caused widespread panic and send shockwaves through the markets, but, the decision to impose the levy still needs to be passed by the Cypriot parliament today - and the markets are nervous that parliament may instead vote to leave the Eurozone. This week's performance also depends very much on various data released from Germany including the results of the monthly economic sentiment survey and German manufacturing data. We also have services and manufacturing Purchasing Managers' Index (PMI) data released across Europe which will give further indication of how fragile the regions economy is. Call in now for up to date rates and information.
US dollarThe euro has been sold off heavily over the weekend, dropping against all of it major trading partners following the news that the EU and IMF have imposed a one-off levy on all bank customers in Cyprus in the region of 6.75-10% in return for the 10 billion euro bailout. This has caused widespread panic and send shockwaves through the markets, but, the decision to impose the levy still needs to be passed by the Cypriot parliament today - and the markets are nervous that parliament may instead vote to leave the Eurozone. This week's performance also depends very much on various data released from Germany including the results of the monthly economic sentiment survey and German manufacturing data. We also have services and manufacturing Purchasing Managers' Index (PMI) data released across Europe which will give further indication of how fragile the regions economy is. Call in now for up to date rates and information.
The US dollar had a poor day on Friday, dropping quite heavily against the majority of its trading partners. This was in part down to the release of the Core CPI inflation data, showing the change in the price of goods and services purchased by consumers remains contained, meaning it is less likely that the central bank will tighten monetary policy in the near term. Other data released showed that both consumer sentiment figures and the empire state manufacturing index came in short of market estimates. This week sees the release of a few important pieces of data. On Tuesday we see the release of building permits statistics - a good gauge for the future of the construction industry. On Wednesday we have the monetary policy decision from the Federal Reserve. No change is expected, but the comments that follow on the quarterly economic projections, showing the predicted levels for inflation and economic growth is likely to cause a reaction in the markets. Other data released this week includes existing home sales, weekly unemployment claims and the Philly manufacturing index. It is set up to be an interesting week for the US dollar, so get in touch for the latest rates.
Elsewhere, the Polish zloty was one of the worst performing currencies on Friday after data released showed that growth was slowing by more than oringinal forecast. In Japan, parliament has now finally approved the three men to head up the Bank of Japan all of who favour loose monetary policy. This weeks main releases includes the minutes from the latest monetary policy meeting from the Reserve Bank of Australia, GDP data from New Zealand and retail sales figures from Canada. Call in now for a live quote.
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