Sterling
Yesterday was a mixed day for sterling with gains on some fronts and losses on others. It made further gains against the euro, reaching a six week high of 1.1820 following comments from the head of the Eurogroup of Eurozone finance ministers who suggested that many countries needing a bail out would follow the Cyprus model of a tax on bank deposits. On the other front, sterling lost ground against the US dollar as data released showed that the number of new mortgages approved for home purchase in UK fell below the market estimate. Today the Chancellor will testify on the 2013 Budget to the Treasury Select Committee, but his comments are not expected to cause any big disruption to the markets. We also have realised sales figures which are predicted to rebound this month after the indicator came out worse than expected in February. Call in today for the latest updates on sterling.
Euro
Cypriot lawmakers reached an agreement with the Eurozone finance ministers very early Monday morning to approve the bailout. In return for the ten billion euro loan from the IMF, the second biggest bank in Cyprus will be wound up, and deposits of over 100,000 euros will be subject to a compulsory one off levy. The Dutch Finance minister said yesterday that the model should be applied to the rest of the Eurozone leading to speculation that raiding banks would be a condition for any further bailouts - to such an extent that two major Italian banks halted trading of their shares after prices plummeted by over 5%. The uncertainty drove the euro down to a four month low against the US dollar, losing two cents very quickly as it headed towards 1.284. It also hit a six week low against sterling and has settled around 1.18 overnight. The euro has certainly been undermined by recent events but the weakness could be fleeting as volatility reduces. Call in now for the latest news and developments, and for an up to the second rate on the euro.
US dollar
The US dollar had a strong day yesterday, up against all of its major peers except the Japanese Yen. This strength was as a result of a risk averse market with investors looking to purchase safe-haven currencies, as market uncertainty continues to dominate the markets in response to the situation in Europe. Today is an interesting day for the US Dollar, as three important pieces of data are released. Firstly, the monthly Core Durable Goods statistics, which is a leading indicator for manufacturing, is forecast to show a drop in growth of just 0.7%. We also have consumer confidence figures and statistics on the number of new home sold in the last month. These are all key indicators for the state of the economy in the US and will be watched closely by investors. Stay tuned for the latest rates.
Worldwide
Elsewhere, the Japanese yen had a steady start to the day before strengthening in the afternoon and making considerable gains against its major peers. The positive performance may have been aided by the resurgence of risk aversion as faith in the Eurozone is yet to be restored. On-going performance is likely to be affected by the Governor of the Bank of Japan's speech today as he sets out his plans for the central banks ultra-loose monetary policy. The Australian dollar made some gains early in the day, but these were largely cancelled out by a poorer performance in the afternoon. The Governor of the Reserve Bank of Australia will be speaking in Sydney today and traders will analyse this in order to predict the central bank’s monetary policy decisions going forwards. Additionally, the biannual financial stability review released later on in the day may display further hints surrounding future monetary policy. Call in now for live rates and up to date information.
Yesterday was a mixed day for sterling with gains on some fronts and losses on others. It made further gains against the euro, reaching a six week high of 1.1820 following comments from the head of the Eurogroup of Eurozone finance ministers who suggested that many countries needing a bail out would follow the Cyprus model of a tax on bank deposits. On the other front, sterling lost ground against the US dollar as data released showed that the number of new mortgages approved for home purchase in UK fell below the market estimate. Today the Chancellor will testify on the 2013 Budget to the Treasury Select Committee, but his comments are not expected to cause any big disruption to the markets. We also have realised sales figures which are predicted to rebound this month after the indicator came out worse than expected in February. Call in today for the latest updates on sterling.
Cypriot lawmakers reached an agreement with the Eurozone finance ministers very early Monday morning to approve the bailout. In return for the ten billion euro loan from the IMF, the second biggest bank in Cyprus will be wound up, and deposits of over 100,000 euros will be subject to a compulsory one off levy. The Dutch Finance minister said yesterday that the model should be applied to the rest of the Eurozone leading to speculation that raiding banks would be a condition for any further bailouts - to such an extent that two major Italian banks halted trading of their shares after prices plummeted by over 5%. The uncertainty drove the euro down to a four month low against the US dollar, losing two cents very quickly as it headed towards 1.284. It also hit a six week low against sterling and has settled around 1.18 overnight. The euro has certainly been undermined by recent events but the weakness could be fleeting as volatility reduces. Call in now for the latest news and developments, and for an up to the second rate on the euro.
The US dollar had a strong day yesterday, up against all of its major peers except the Japanese Yen. This strength was as a result of a risk averse market with investors looking to purchase safe-haven currencies, as market uncertainty continues to dominate the markets in response to the situation in Europe. Today is an interesting day for the US Dollar, as three important pieces of data are released. Firstly, the monthly Core Durable Goods statistics, which is a leading indicator for manufacturing, is forecast to show a drop in growth of just 0.7%. We also have consumer confidence figures and statistics on the number of new home sold in the last month. These are all key indicators for the state of the economy in the US and will be watched closely by investors. Stay tuned for the latest rates.
Elsewhere, the Japanese yen had a steady start to the day before strengthening in the afternoon and making considerable gains against its major peers. The positive performance may have been aided by the resurgence of risk aversion as faith in the Eurozone is yet to be restored. On-going performance is likely to be affected by the Governor of the Bank of Japan's speech today as he sets out his plans for the central banks ultra-loose monetary policy. The Australian dollar made some gains early in the day, but these were largely cancelled out by a poorer performance in the afternoon. The Governor of the Reserve Bank of Australia will be speaking in Sydney today and traders will analyse this in order to predict the central bank’s monetary policy decisions going forwards. Additionally, the biannual financial stability review released later on in the day may display further hints surrounding future monetary policy. Call in now for live rates and up to date information.
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