Sterling
Despite disappointing public sector borrowing figures in the morning, sterling enjoyed a steady day, making gains against most major peers which included strengthening above the 1.17 level against the euro. While today looks set to be quiet in terms of data released, we could nonetheless see volatility as we await tomorrow's preliminary first quarter growth figures. Although only preliminary, any deviation from the forecast figure of 0.1% growth will likely move the market. Call in now for the latest update on the UK and how this is effecting sterling.
Poor manufacturing data from Germany caused the euro to weaken early yesterday, with the monthly Purchasing Managers' Index data showing that the German manufacturing sector had contracted to a greater degree than expected. On a more positive note, manufacturing figures from France beat market estimates, but as the powerhouse of Europe, the shortfall in the German figures drove market sentiment. The poor figures emanating from the Eurozone’s largest economy has reinforced speculation that the ECB could cut interest rates to a record low next month, which would cause the currency to weaken further. German Business Climate data released today is likely to have the greatest impact on the performance of the seventeen-nation currency as Eurozone countries continue to hope for more concrete signs of economic recovery. Call in now for live rates and up to the minute information.
The US dollar enjoyed a successful day buoyed by the news that the housing sector is on the up with stronger demand. New home sales figures released yesterday described an upward trend through March, indicating a real estate market recovery could be sustained, and as builders respond to make more homes available, increased demand will help fuel stronger economic growth. Indeed the advance first quarter GDP report on Friday is expected to show the world's largest economy gathering pace, though figures released today are projected to show that demand for US Durable Goods fell by nearly 3% in March. Talk to your trader to gauge what this could mean for US dollar prices.
Elsewhere, currencies worldwide were affected by data released from China showing a slowing manufacturing sector and providing further evidence that their recovery may be faltering. The Australian and New Zealand dollars fell against most of their major peers following the news, whilst the Canadian dollar traded at a six-week low against its US counterpart despite core retail sales figures exhibiting better than expected results. The Swedish krona also struggled yesterday after the overall unemployment rate was revised upwards. Call in to see how markets react to the Reserve Bank of New Zealand’s central bank decision and Australian inflation figures released overnight.
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