Sterling
Sterling remained fairly range bound yesterday following the solid industrial output data released on Tuesday which increased belief that the UK should avoid a triple-dip recession. Sterling remains close to a two-month high against the US dollar and edged near to a four year high against the Japanese yen. These gains are likely to be limited however until GDP data from the first quarter of 2013 is released later in the month, and in anticipation of a new Governor of the Bank of England who starts his tenure in July. Today a speech from the Bank of England's deputy governor is likely to provide hints to monetary policy going forwards. Call in to see how this impacts Sterling.
The euro started the day on the front foot on the back of improved French manufacturing figures for February, which beat forecasts. Furthermore, figures from Greece show that deposit inflows were valued at more than €1.5 billion for March, going against market expectations that the Cypriot banking crisis would cause significant outflows in other troubled European nations. However, this positivity was not enough to prevent the euro losing ground later on as poor industrial production data from Spain and Italy. Later today, the single currency will be watched closely as the European Central Bank releases its monthly bulletin which may well provide further hints regarding a potential interest rate cut in the near future. Call in for more reaction from the markets.
The US dollar had a steady day yesterday, with its only real significant movement against the yen, hitting a four-year high. By mistake, the Federal Open Market Committee (FOMC) released their meeting minutes 5 hours early because they were inadvertently sent early to a list of individuals who usually receive the information after release time. The minutes fortified expectations that we will see an end to a period of bond buying sooner than expected. Some FOMC policymakers favoured slowing the pace of asset purchases whilst others looked to stop quantitative easing by the end of the year (if labour conditions improved as expected), though market reactions to this were relatively muted. Today we have unemployment claims data released, though the focus this week will be on Friday's retail sales and inflation data. Call your trader to see how prices are affected.
Elsewhere, the biggest loser yesterday was the Japanese yen which continued its slump, falling to its lowest level against the US dollar for four years as the Japanese Central Bank reiterated plans for its stimulus program and how monetary policy would not be altered. Norway’s kroner was also having a bad day against its major counterparts after an unexpected slowdown in growth increased the possibility of a cut in interest rates. The Australian dollar traded close to recent highs; performing well on most fronts after imports in China, Australian’s biggest trade partner, unexpectedly rose. Overnight we saw labour data released from Australia, but little else is due to be released. Get in touch now for the latest news and rates on your currency.
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