Sterling
Sterling fell against the dollar yesterday following government data showing the UK unemployment rate had climbed alongside wage increases slowing below the level of inflation; signs of a weakening domestic economy. Indeed, Sterling lost ground across the board as the Bank of England's April meeting minutes described policymakers voting to keep asset purchases on hold despite a call from the Governor of the Bank of England for additional stimulus - echoing sentiment from the International Monetary Fund which recently cut its economic forecast for the UK. It remains marginal whether growth data next week will reveal another recession. However Sterling did have a better second half to the day gaining ground as worries elsewhere undermined the euro and the commodity backed currencies. Call in now for how this uncertainty impacts Sterling demand.
The euro struggled yesterday, plunging from recent highs notably against the US dollar and Japanese yen alongside relinquishing a strong position over the ailing Sterling. The drop was fuelled by the President of the German central bank suggesting that the European Central Bank could cut interest rates to record lows, which may see the euro struggle to maintain the rebound it enjoyed earlier in the month. The biggest story today is likely to be the Spanish bond auction, a key indicator of market confidence in the economic health of the Eurozone. Get in touch now to see what impact this has and for a live market price.
A struggling stock market saw many traders sell off equity holdings; boosting demand for the US dollar and driving rates up on all fronts. Today sees the release of key unemployment figures which last month exceeded expectations. If the predicted rise in unemployment forecast is better than expected then expect the dollar to strengthen as traders look at a burgeoning labour market as a signal that the Federal Reserve Bank will end quantitative easing programs sooner rather than later. Get in touch now for the latest news and up to the second prices.
Elsewhere, the Russian rouble performed poorly yesterday as the price of crude oil dropped, causing a further loss of faith in the Russian economy. The Swedish krona was one of the worst performing currencies after its central bank revised down its path for future interest rates. It was also a difficult day for the Canadian Dollar, as the market saw it drop to its lowest level in a month versus its US counterpart. The slide was a reaction to the Bank of Canada lowering its growth rate prediction for the year to 1.5% from the 2% predicted in January. Today, the Chairman of the Bank of Canada is due to speak in Washington DC which may provide clues as to the country's monetary policy for the second quarter with Canada still reacting to falling commodity values. Get in touch for the latest rates.
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