Sterling
Sterling had a poor day yesterday, losing considerable ground to the US dollar, and only just holding its own against a weak euro. The drop came as one of the members of the monetary policy committee called for a looser monetary policy to stimulate the economy. Current account figures (the difference in value between imports and exports) are released today and may well lead to another eventful day’s trading for sterling. The other key release will be the final reading of the UK’s GDP from last quarter, currently expected to confirm that we saw mild growth of 0.3%, any significant variation away from this figure and we could see a big market reaction. Call in now for the latest news and up to the second rates for sterling.
The euro continued to struggle yesterday, falling to three week lows against the US dollar and breaking through the 1.30 level, as two further members of the European Central Bank (ECB) reiterated President Draghi’s comments that monetary policy would remain accommodative for as long as necessary. Today is quiet for major releases as the EU economic summit commences with the European banking union back on the agenda. Call your trader now for the latest update from the market.
The US dollar enjoyed a very strong day, adding to Tuesday's gains. This move came in spite of the final GDP reading coming out much worse than expected showing growth was only at 1.8%, a long way shy of the 2.4% that had initially been anticipated, whilst 1st quarter growth figures were revised down to 1.8%. This caused the dollar to weaken off initially before continuing to strengthen late on with the US dollar challenging the 1.53 resistance level against sterling and breaking through the 1.30 mark against the euro. Employment figures released this afternoon will be the main talking point for dollar traders, as well as comments from two members of the Federal Open Market Committee. Call your trader today for up to the second rates.
Elsewhere, as Kevin Rudd defeated Julia Gillard in a party leadership ballot to become Prime Minister, the Australian dollar gained a cent against sterling to reach week highs. The Indian Rupee weakened to new all-time lows – breaking through the 93.0 mark against sterling as the currency continues its free-fall. The Japanese yen held its own, after recent demand for the safe haven currency began to cool. Overnight we saw the release of Trade balance data and business confidence figures from New Zealand, but little else is scheduled to be released today. Get in touch with your trader today for the latest for your currency.
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