Sterling gains across the board
A positive week for sterling saw it gain ground across the board, as fears over the uncertain result of the UK general election took a back seat to the Eurogroup meetings and poor economic data from the US. Sterling was particularly impressive against the US dollar hitting a fresh one-month high against the US dollar. European Union finance ministers openly vented their frustration towards the Greek government’s unwillingness to negotiate and at one stage sterling was able to push close to its recent one-month high against the euro before slipping back.
The week ahead sees a low volume of data releases from the UK, although each of these does promise to carry a lot of weight. Preliminary economic growth data for the first quarter will be released on Tuesday, and is expected to demonstrate further healthy growth for the UK. Following this, we will see mortgage approvals and consumer confidence data released ahead of the first of this month’s Purchasing Managers’ Index (PMI) figures being released on Friday from the manufacturing industry. Expectations are for a small improvement from last month and manufacturing continuing to be in an expansion phase.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
US Dollar still the star
The US dollar had a slightly mixed end to the week, as the US again took a backseat to other currencies ‘movements. There were two data releases of lesser significance from the States, but both the manufacturing Purchasing Managers’ Index (PMI) and the existing home sales data came in slightly behind expectations. However, the dollar did manage to make gains in most areas, notably reaching an 11-year high against a turbulent euro. A strong performance from sterling saw the dollar lose out in this market.
With nothing due today, investors must wait until tomorrow for the first data activity from the US. This starts with the durable goods orders figures, and will be followed by consumer confidence data, and new home sales results on a busy day. Mid-week brings the most significant event for the long term, with the latest rate decision due, along with its accompanying statement. While no change is expected yet, any hints as to future plans are sure to be closely scrutinised. Thursday then moves to the labour market for the regular unemployment claims figure, before Friday rounds off with multiple points. The most significant will be the advance grow figure, showing a good overall growth figure for the economy. This will be supported by the Chicago PMI, and consumer sentiment data from the University of Michigan.
If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
Positive economic data support the Euro | 31/07/2013
A further batch of positive data out of the euro zone meant that the euro logged another generally positive day, adding to the gentle momentum that the 17-nation currency has been building. Data released yesterday showed consumer confidence across the euro zone hit the highest levels in 15 months in July, reaching a rate of 92.5, up from 91.3 in June. The most notable results were seen in Germany, where levels were at the highest seen since September 2007. This continuing evidence suggests that the worst of the European recession has passed and is henceforth taking pressure of the European Central Bank to increase its easing policies. Today we have the release of monthly European inflation data, as well as unemployment statistics. Although the data is important, markets will have one eye firmly on Thursdays ECB meeting. Get in touch for the latest euro rates.