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Posted November 19th, 2015 by Charles Purdy

US markets slow as investors eagerly await Fed meeting minutes on interest rates

Yesterday was a relatively quiet day for the US Dollar, as investors waited for the release of the US Federal Reserve meeting minutes. Building Permits in the US came out as expected, showing moderate growth, but this did not have much of an impact on the market as the waiting continued. The actual minutes were slightly more ambiguous than expected re. a December increase in US interest rates so we have seen a small amount of US dollar weakness subsequent to their release.

Following yesterday’s meeting minutes, we can look forward to two Federal Reserve members speaking – but they are expected to be for a interest rate increase. In terms of data, the weekly labour data will be released; this is forecast to be yet another stable figure.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency purchasing strategies.

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Posted November 12th, 2015 by Charles Purdy

Eyes and ears on the Federal Reserve today

It was a quiet day for US markets, with Veteran’s Day on Wednesday and banks being closed. The attention now turns to the end of the week. With weekly labour data due out today, the spotlight will be on US Federal Reserve Chair Janet Yellen, who speaks.

With expectations high for a December interest rate rise, investors will be keen to see if there are any comments made by Yellen that might mention or allude to a potential hike. Any related statements or clues could have the opportunity to influence the US dollar market. Following Yellen’s speech, we will also be hearing from three other members of the central bank. Any comments from them on the same topic could also have the power to move the dollar market.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted October 29th, 2015 by Charles Purdy

US dollar strengthens as December interest rate rise seems likely

It was quiet for the US dollar during the day on Wednesday, with minimal data released. Focus was on the US Federal Reserve interest rate decision and the statement that follows and this statement sent the currency markets into overdrive. Not from what it said but from what it omitted. It omitted the caveat about the world economy possibly depressing the US economy which has increased the likelihood of a December interest rate rise which strengthened the US dollar across the board.

Following the interest rate decision and statement yesterday evening, we can look forward to a busy day today, with advance growth figures released in the early afternoon. This is expected to show six months of consecutive growth; any surprises could cause movement in dollar markets. Weekly unemployment claims are also released, and expected to show another positive figure.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted October 15th, 2015 by Charles Purdy

A downward trajectory for the US dollar

Wednesday was not a good day for the US and its currency, with the US dollar weakening one and half cents against sterling and half a cent against the euro. This was as a result of weak data releases that showed a larger drop in retail sales than expected; and producer inflation falling further into negative territory. Following these disappointing figures, various banks cut their third quarter US growth forecasts.

Today we could look at further negativity for the US, as consumer inflation is expected to worsen against the previous month, posting a second consecutive negative figure. This is followed by the weekly unemployment claims which should post another stable figure. Following a lacklustre day for the US dollar on Wednesday and possibly today, attention will be on US Federal Reserve members in how they feel the recent data releases will affect their decision on an interest rate hike this year.

If you are looking to buy or sell US dollars, now is a good time to contact your trader for live rates, the latest news and to discuss currency purchasing strategies.

Posted August 20th, 2015 by Charles Purdy

Bets on a US interest rate hike pushed back

The US dollar weakened further Wednesday due to a slight drop in consumer inflation – a key indicator for the US Federal Reserve when considering the ate to raise interest rates. This slight drop meant that questions surround the possibility of a September interest rate lift off. The meeting minutes suggested that most of the members of the Federal Reserve felt that the “conditions for a rate-hike were getting closer”; however, the officials also highlighted concerns including the Chinese economy and a sustainable labour market. Moreover, the central bank shifted its rhetoric towards a focus on inflation, stating that the members need to see inflation heading further towards its target before considering an interest rate-hike. As a result, market estimates for when the US will look to raise interest rates have been pushed back especially in light of the lower than expected inflation data released yesterday.

Following the Federal Reserve minutes last night, today we look forward to both the weekly unemployment claims and existing home sales data. Unemployment claims are expected to show a very small drop on the previous week, continuing to show positivity in job opportunities. Existing home sales is also expected to show a slight drop on the previous month.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency purchasing strategies.

Posted August 6th, 2015 by Charles Purdy

Will the euro recoup its losses after a tough Wednesday?

It was another tough day for the euro on Wednesday as it slumped to two-week lows against sterling and the US dollar, weakening close to recent eight-year lows against sterling. Pressure on the single currency has been increased amid expectations that a rate hike by the US Federal Reserve in the coming months would prompt the Bank of England (BoE) to follow suit.

The euro wasn’t supported when disappointing retail sales were released in the morning, coming out in the negative at -0.6%, compared to the previous positive figure of 0.2% last month. The Purchasing Managers’ Index (PMI) figures for the Eurozone also fell in what was a disappointing day for the single currency.

Earlier today we have manufacturing orders data from Germany, but other than this it is likely to be a quiet day for data releases for the single currency, with the eye of the financial markets focusing on the UK, and on BoE activity in particular.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted July 30th, 2015 by Charles Purdy

Sterling strengthens due to takeover talk

Even though there was a lack of fundamental UK economic data on Wednesday, sterling moved higher against both the euro and the US dollar, as investors looked to lock in their positions ahead of large proposed corporate acquisitions. Two British companies were the subject of takeover bid talk from overseas firms and, with the bidders needing to purchase potentially billions of sterling to finance these deals, the value of the British currency jumped higher. However, with the US Federal Reserve releasing their latest interest rate decision last night, a recovering dollar towards the end of the day erased many of sterling’s earlier gains. The Federal Reserve’s statement turned out to be more of the same; as they get further evidence of an improving US economy, they will look to increase US interest rates, most likely sometime this year.

We expect attention to be focused on the US today, with the earliest measure of economic growth throughout the previous quarter is set to be released this afternoon.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted July 9th, 2015 by Charles Purdy

US Dollar boosted by expectations on interest rate increases

There was continued strength for the US dollar yesterday, primarily driven by sterling weakness. This saw the US dollar hit a monthly high against sterling. Crude oil inventories were the only release of note on Wednesday, and these showed a slight increase. Investors were also awaiting the US Federal Reserve Meeting minutes, out last night. These showed that the members were still aiming to increase interest rates this year so long as the actual performance of the US economy matched the Federal Reserve’s forecasts. As these were made before the Chinese stock market crash, the collapse of Greek bailout discussions and the downward pressure on oil prices, these forecasts may prove to be too optimistic which would push back interest rate increases yet again.

The weekly unemployment claims is the only main release expected today. This should show a slight improvement from the previous week’s figures. Recent releases have been positive, so we can expect further positive labour data from the US. US Federal Reserve member Brainard also speaks, with the expectation to elaborate on yesterday’s Federal Reserve meeting minutes.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted May 28th, 2015 by Charles Purdy

Sterling has a little stumble

The Queens Speech at the opening to Parliament seemed to bring little joy for sterling as it had a difficult afternoon and struggled across the board. Today we have the release of the EU referendum bill by the government.

A positive start to the day saw sterling push to a two-month high against the euro, with markets considering the likelihood of bad news regarding the Greek debt situation. However, following the announcement by a Greek government official that the nation were to begin drafting a funding agreement with its creditors, sterling found itself under pressure. After strengthening against the euro for 3 days straight, sterling fell sharply following the release of this news as hope grew of a solution to the long standing issue. The UK currency also struggled against its other major trade partners as demand for sterling as a haven currency lessened in the wake of this news.

Sterling extended its losing run against the US dollar, as speculation mounted that we could see a number of Federal Reserve members push for a rate hike in June.

Limited data releases in the UK today and tomorrow we have the release of the second estimate of UK economic growth throughout the second quarter. With little other economic news released from the UK this week, investors will be eagerly awaiting this data. Eyes will also be on the ongoing G7 meetings, where we will expect to hear more revelations.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted April 30th, 2015 by Charles Purdy

Sterling stronger against the US dollar

A mixed day for sterling on Wednesday saw it lose a little bit of ground against the euro whilst pushing to a fresh two month highs against the US dollar thanks to disappointing US economic growth figures. Sterling’s strength against the US dollar was then further supported by the outcome of the Federal Reserve meeting where worries over the US economy being less robust than hoped for has clearly pushed back the date of an interest rate rise.

Another quiet day for sterling on the data front lies ahead. Investor attention will instead be trained on both the Eurozone for their latest inflation figure, and the US for the previous weeks unemployment claims.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

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