Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
 
  Daily Currency News Euro US Dollar Educational Articles  
 
Posted July 24th, 2013 by Charles Purdy

Sterling steady as we await UK Growth data tomorrow | Smart Daily Currency Note

GBP/EUR – 1.1642
GBP/USD – 1.5383
EUR/GBP – 0.8588
EUR/USD – 1.3213
GBP/AED – 5.6502
GBP/AUD – 1.6612
GBP/CAD – 1.5841
GBP/CHF – 1.4399
GBP/CNY – 9.4436
GBP/HKD – 11.9349
GBP/HUF – 345
GBP/INR – 91.341
GBP/JPY – 153.51
GBP/NZD – 1.9282
GBP/RUB – 49.7285
GBP/SEK – 9.9201
GBP/THB – 47.572
GBP/ZAR – 14.948

Sterling

Sterling traded within a narrower range yesterday as we saw a decrease in volatility across the currency markets. The pound has made reasonably consistent gains since last week’s Monetary Policy Committee meeting minutes were released. A report from the British Bankers’ Association released yesterday morning showed that UK mortgage approvals increased during June, although this increase was marginally lower than expected. As a result, the data had little overall effect and sterling made good the slight losses it experienced earlier in the day against the US dollar and weakened very slightly against the euro. Preliminary UK growth data for the second quarter will be released tomorrow and is likely to have a strong bearing on performance as investors look to ascertain how much faith to put in a sustained economic recovery for the UK. Ahead of that, the Confederation of British Industry releases data detailing expected industrial orders over the next three months this morning, which may also have cause a degree of volatility. Call in now to see how sterling reacts.

Euro

The euro performed reasonably well yesterday, making modest gains against sterling and the US dollar. Consumer confidence data came through marginally better than expected, which fared well for the single currency. Having experienced little in the way of influential data coming from the Eurozone when compared with the UK and US, today sees a buck in the trend as investors will look to German and French Flash Manufacturing data as key indicators of economic strength. Marginal contraction is predicted in both countries, however varying figures, especially emanating from Germany could give rise to sharp movement. Call in now to see how to track the reaction from the euro.

US Dollar

After a tough few days for the US dollar following on from the Chairman of the Federal Bank’s report to Congress last week, yesterday provided some respite. The dollar saw little movement against sterling and weakened slightly against the euro. A Bloomberg survey of leading economists revealed that that around half of those surveyed believed that the Federal Open Market Committee (FOMC) would reduce the pace of bond-buying by $20 billion per month in September. Such a result would boost dollar performance in the medium term, but is by no means assured at this stage. Furthermore, it may still be some time before interest rates are increased following any reduction of asset-purchasing and whilst the outlook is generally positive for a US recovery in the long term, it may be some time before we see any substantial dollar rally. Whilst uncertainty reigns, speculation by key figures and incoming economic data releases will continue to cause volatility. One of such releases will be occurring this afternoon and comes in the form of New Home Sales data from the US. Monday’s Existing Home Sales data contributed to dollar weakness on Monday and traders will look to today’s figures as a further indicator of economic strength or lack of economic strength. Call in now to keep pace with market movements.

Worldwide

Elsewhere, the big mover yesterday was the Canadian dollar. The Canadian currency showed notable gains against the majority of its most-traded peers as a result of significantly better than expected retail sales data. The retail figures showed an impressive 1.9% increase in May, the biggest monthly jump in 3 years, quadrupling the 0.4% projections. These figures, off the back of strong wholesale and manufacturing figures last week, all point toward less slack for the Bank of Canada to continue its generous monetary policy. The Japanese yen, after a strong day yesterday, tumbled against all of the majors as certain over-exuberance receded following the weekend’s election result, in which fiscal and monetary policy stimulus supporter, Shinzo Abe, was given the nod from the populace. Overnight we saw trade balance data out of Japan and New Zealand, as well as Australian inflation data. This evening we also have short term interest rate decision out of New Zealand. Get in touch for the latest rates.

If you haven’t opened a Smart account yet, call on 0808 163 0102 (+44 0207 898 0541) or fill out our online Account Form

Comments are closed.

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus