Sterling
The euro had a mixed day yesterday. Alongside concerns towards political uncertainties in Italy, overall sentiment towards the currency was negative due to concerns on the Eurozone economy in general. Governments functioning under the monetary union face record-high unemployment, with a number of European policy makers unwilling to address the debt crisis any further. Although retail sales rose, and the overall Services PMI figures actually came our above market expectations – it still showed an overall contraction of 47.9. The Spanish reading was much worse than expected and the Italian figures showed a deep industry contraction. On a more positive note – the German figures were better than expected which point to a recovery for the European powerhouse. We have a quiet day for data coming out of the Eurozone today with the main focus on the European Central Bank press conference held this Thursday, with people expecting a more positive tone for monetary policy. Call in now for the latest news and changes in the euro rate.
US dollar
A new all-time high on the Dow Jones lent support to the US dollar; but, it actually ended the day weaker against 9 of its 12 major currency peers. Data released in the afternoon showed that the services sector experienced the fastest growth in a year last month boosted notably by demand for exports, which should lend support to a stronger dollar moving forward. Today sees the release of influential employment data. With the last few months coming in better than expected, and the Federal Bank having made clear its mandate for interest rates would remain unchanged until the labour markets recovered, expect traders to watch the release with a keen interest. Get in touch to find out where the dollar is trading right now.
Worldwide
Elsewhere, the Australian dollar recovered from earlier lows as the Bank of Australia held interest rates unchanged at 3.0% - a 50 year low, with the Governor of the central bank saying that the low rates were having the intended effects. The Swiss Franc lost ground against the euro as it strengthened from recent lows, in spite of last month's assertion from the Swiss National Bank that the peg should be maintained at all costs. The Swedish krona performed well yesterday as its central bankers stated that they would not look to devalue the krona in spite of its recent strength. Today, the Canadian central bank releases its interest rate decision, the second of no less than 5 countries to do so this week, and it's expected to remain unchanged at 1%. If it indeed is, expect yesterday's small gains to continue today. Get in touch now for the latest news and up to the second rates for your currency pair.
Sterling had a mixed day yesterday - hitting highs of 1.52 against the US dollar and 1.1645 against the euro in the morning before pulling back in the afternoon. Sterling got a helping hand from positive data released yesterday morning. Statistics showed that retail sales had increased by 2.7% in February and then the Services Purchasing Managers' Index (PMI) data detailed a significant increase in business activity in the service sector for the second consecutive month suggesting the economy may avoid a triple-dip recession. However what prevailed over the day were the talks about the fact that sterling could still be overvalued alongside speculation of another round of quantitative easing at Thursdays central bank meeting. Today sees the Governor of the Bank of England's testify about banking standards before the Parliamentary Committee. Sterling remains under significant pressure from the market so call in now for the latest news and changes in the rates.
Euro
The euro had a mixed day yesterday. Alongside concerns towards political uncertainties in Italy, overall sentiment towards the currency was negative due to concerns on the Eurozone economy in general. Governments functioning under the monetary union face record-high unemployment, with a number of European policy makers unwilling to address the debt crisis any further. Although retail sales rose, and the overall Services PMI figures actually came our above market expectations – it still showed an overall contraction of 47.9. The Spanish reading was much worse than expected and the Italian figures showed a deep industry contraction. On a more positive note – the German figures were better than expected which point to a recovery for the European powerhouse. We have a quiet day for data coming out of the Eurozone today with the main focus on the European Central Bank press conference held this Thursday, with people expecting a more positive tone for monetary policy. Call in now for the latest news and changes in the euro rate.
A new all-time high on the Dow Jones lent support to the US dollar; but, it actually ended the day weaker against 9 of its 12 major currency peers. Data released in the afternoon showed that the services sector experienced the fastest growth in a year last month boosted notably by demand for exports, which should lend support to a stronger dollar moving forward. Today sees the release of influential employment data. With the last few months coming in better than expected, and the Federal Bank having made clear its mandate for interest rates would remain unchanged until the labour markets recovered, expect traders to watch the release with a keen interest. Get in touch to find out where the dollar is trading right now.
Elsewhere, the Australian dollar recovered from earlier lows as the Bank of Australia held interest rates unchanged at 3.0% - a 50 year low, with the Governor of the central bank saying that the low rates were having the intended effects. The Swiss Franc lost ground against the euro as it strengthened from recent lows, in spite of last month's assertion from the Swiss National Bank that the peg should be maintained at all costs. The Swedish krona performed well yesterday as its central bankers stated that they would not look to devalue the krona in spite of its recent strength. Today, the Canadian central bank releases its interest rate decision, the second of no less than 5 countries to do so this week, and it's expected to remain unchanged at 1%. If it indeed is, expect yesterday's small gains to continue today. Get in touch now for the latest news and up to the second rates for your currency pair.
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