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 17th, 2013 by Charles Purdy

A difficult day for sterling lies ahead | Smart Daily Currency Note

GBP/EUR – 1.1491
GBP/USD – 1.5092
EUR/GBP – 0.87
EUR/USD – 1.3131
GBP/AED – 5.5434
GBP/AUD – 1.6387
GBP/CAD – 1.5689
GBP/CHF – 1.4204
GBP/CNY – 9.2549
GBP/HKD – 11.7069
GBP/HUF – 337.17
GBP/INR – 89.601
GBP/JPY – 150.18
GBP/NZD – 1.9205
GBP/RUB – 48.9434
GBP/SEK – 9.9609
GBP/THB – 46.896
GBP/ZAR – 14.924

Sterling

Consumer Price Index data from the UK, which gives an indication as to the current level of inflation, came in marginally worse than expected yesterday. This impacted on sterling’s performance as traders hedged their bets in the run up to the today’s publication of the minutes from Governor Mark Carney’s inaugural Monetary Policy Committee (MPC) meeting. Inflation has an important impact on performance as higher inflation should deter the MPC from further quantitative easing, which would devalue the currency, whilst lower inflation data would be seen as giving decision makers the go-ahead for increased asset-buying. The sterling dollar rate fluctuated throughout the day as both currencies reacted to negative stimuli, whilst sterling weakened steadily against the euro throughout the day. All eyes will be on the Bank of England report released this morning as we wait to see which way Carney and the other members voted on further quantitative easing. Call in now to track market reaction to the minutes and to get a live rate.

Euro

The euro performed surprisingly well yesterday despite German economic sentiment proving to be worse than forecast. As sterling and the US dollar falter ahead of today’s events, the single currency made steady progress yesterday and improved its position against both currencies. Events in the UK and the US are likely to steal the limelight today and will likely play a much greater role on influencing the relative strength on the euro as opposed to the data emanating from Europe in the short term although we do have a key vote in Greece on further government cuts to public expenditure. The only significant data release will be the German 10-year bond auction held today. Call in now to see how the seventeen-nation currency reacts.

US Dollar

The US dollar struggled yesterday as speculation grew that Chairman of the Federal Reserve Ben Bernanke will continue to deter hopes that we can expect a speedy scaling back of US bond-buying when he delivers his monetary policy report to Congress over the course of today and tomorrow. His words last week made traders hesitant to back the dollar ahead of the report. The US dollar fell consistently against the euro, whilst the dollar sterling rate experienced volatility, with sharp movements in both directions as both currencies struggled. US Consumer Price Index data, a key inflation indicator, failed to have a significant impact as predictions proved to be largely accurate for the month of June at 0.2%. Whilst the Chairman of the Federal Reserve’s report to Congress is expected to steal the headlines across the Atlantic, we also have another member of the Federal Open Market Committee speaking as well as a the release of the Beige book which will reveal the state of the local economies from all 12 Federal Reserve Banks. Call in now to see how the report is received.

Worldwide

Elsewhere, the Australian dollar was one of the best performers yesterday following the release of the minutes from the latest Reserve Bank of Australia rate setting meeting which outlined the central banks sentiment that interest rates were at an appropriate level, henceforth, seemingly removing the possibility of another rate cut in the near term.  The Polish zloty also performed well yesterday following new government plans that will widen the budget deficit in order to boost the economy. The Canadian dollar remained fairly range bound as manufacturing sales figures came out as expected, however, you can expect the markets to become nervous ahead of the Bank of Canada’s rate setting meeting and press conference this afternoon. Call Smart today for the latest news, and live quotes, for your currency.

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.

Posted July 16th, 2013 by Charles Purdy

Sterling still feeling the heat | Smart Daily Currency Note

GBP/EUR – 1.155
GBP/USD – 1.5125
EUR/GBP – 0.8655
EUR/USD – 1.3094
GBP/AED – 5.5549
GBP/AUD – 1.6462
GBP/CAD – 1.5766
GBP/CHF – 1.4316
GBP/CNY – 9.2802
GBP/HKD – 11.7323
GBP/HUF – 337.49
GBP/INR – 89.752
GBP/JPY – 151.03
GBP/NZD – 1.9293
GBP/RUB – 49.2213
GBP/SEK – 10.0682
GBP/THB – 46.974
GBP/ZAR – 14.9576

Sterling

Sterling experienced some movement yesterday, losing some ground against the US dollar during the morning, but largely making good those losses in the afternoon. There was also little overall movement against the euro as data released from Smart Currency partner Rightmove Plc showed that asking prices for UK housing had risen again to a record high. The most imposing event on the horizon for sterling is the publication of the minutes of the Bank of England’s most recent policy meeting, which may give traders cause to react as everyone looks to get the measure of Mark Carney. Should it transpire that Carney voted in favour of further quantitative easing then we are likely to see a sharp decline for sterling. In the meantime, today sees the release of Consumer Price Index data, which is the most important indication of the current level of inflation in the UK. Higher than expected inflation may lend some support to sterling ahead of the release of the policy meeting minutes tomorrow, whilst lower figures would have an inverse effect. Call in now for a live rate from your trader and to keep pace with developments.

Euro

Yesterday saw little in the way of influential data emanating from the Eurozone and its performance was largely defined by events elsewhere. Little net movement was seen against sterling or the US dollar by the close of trading in London. Today we can look to German economic sentiment data to impact upon performance as traders looks for signs of optimism from investors and analysts in Europe’s largest economy. Today also sees the release of Core Consumer Price Index and trade balance data from the Eurozone, but it is Germany’s economic sentiment data that is likely to play the biggest role. Call in now to track its effect and to receive a live rate.

US Dollar

The US dollar enjoyed a reasonably strong morning yesterday, making reasonable gains against sterling and euro as a number of key figures made optimistic predictions for the US retail sales data. However, earlier gains were quickly wiped out when the figures revealed less growth than expected. Whilst typical estimates put growth at 0.8%, the figures revealed growth to be slightly lower at 0.4%, underlining the fact that recovery has been less convincing in the second quarter for the US. Commentators expect the US economy to continue its recovery over the coming months, however figures such as yesterday’s show that the recovery could be sporadic and any negative data is likely to lend credence to the hesitancy that Fed Chairman Bernanke expressed last week regarding the tapering back of the US bond-buying programme. Thus today’s US Core CPI data, giving an indication as to the level of inflation in the world’s largest economy, has the potential to cause further movement if figures differ from predictions. Call your trader now to keep pace with developments and to get a live quote.

Worldwide

Elsewhere, the Japanese yen struggled yesterday in part due to the disparity in future monetary policy in Japan versus the US. The Canadian dollar also struggled yesterday alongside falling commodity prices and ahead of the Bank of Canada rate setting meeting on Wednesday. Overnight we saw the Reserve Bank of Australia release the minutes from its latest monetary policy meeting and later on today we have manufacturing sales figures released from Canada. Call Smart today for the latest news, and live quotes, for your currency.

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

Posted July 15th, 2013 by Charles Purdy

Sterling slips as the UK awaits the BOE meeting minutes | Smart Daily Currency Note

GBP/EUR – 1.1568
GBP/USD – 1.5101
EUR/GBP – 0.8641
EUR/USD – 1.3052
GBP/AED – 5.5464
GBP/AUD – 1.6595
GBP/CAD – 1.5698
GBP/CHF – 1.4314
GBP/CNY – 9.2679
GBP/HKD – 11.7151
GBP/HUF – 337.09
GBP/INR – 90.44
GBP/JPY – 150.2
GBP/NZD – 1.933
GBP/RUB – 49.24
GBP/SEK – 10.0604
GBP/THB – 47.031
GBP/ZAR – 15.051

Sterling

Sterling slipped away a little on Friday, breaking through 1.51 and 1.16 against the US dollar and euro respectively. This week is a lot livelier on the news front than last with influential releases coming most days. Tomorrow sees annual CPI figures as well as other inflation data. On Wednesday markets get further insight into how the new Governor of the Bank of England will run his bank with the release of the minutes from the first meeting under his charge. On Thursday we have Retail sales figures, a key indication of consumer spending and growth in the country, markets will keep a keen eye on the release though the forecasts are not overly positive. Call your trader this week for the very latest news, and up to the second rates for sterling.

Euro

The euro stayed broadly flat through Friday’s trading in spite of somewhat disappointing manufacturing production figures. The major events this week are an influential German economic sentiment survey released tomorrow morning which is expected to show increased optimism. A bond auction on Thursday will show how much it costs the Spanish government to borrow money , but little else is scheduled to be released. Get in touch with Smart this week for an update on where the euro is trading right now.

US Dollar

The US dollar got back into the groove on Friday as markets came to realise that, whether or not tapering of quantitative easing is to happen right away, the trend of monetary policy either side of the Atlantic appears to be moving in opposite directions. Those hoping for last week’s excitement to have died down may well be disappointed with influential data being released most days. Today is retails figures, tomorrow inflation and Thursday sees Federal Reserve Chairman Bernanke speak again. Last time he spoke the US dollar dropped 2.5 cent – markets will certainly be nervous as he takes the stage again. Call us today for a live rate on the US dollar.

Worldwide

Elsewhere the biggest loser on Friday was the Australian dollar, slipping 1.5% against its American counterpart. Overnight tonight eyes will look south again, with quarterly inflation figures from New Zealand, and the minutes from this month’s Australian Monetary Policy Committee meeting. Later in the week, no change is forecast when the Bank of Canada announces its interest rate decision, and their new governor steps into Mark Carney’s old shows and hosts a press conference. Call Smart today for the latest news, and live quotes, for your currency.

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

Posted July 12th, 2013 by Charles Purdy

Difficult week for sterling, will it continue next week? | Smart Daily Currency Note

Last week            This week
(GBP/EUR – 1.1757)   GBP/EUR    1.1591
(GBP/USD – 1.5583)   GBP/USD    1.5138
(EUR/GBP – 0.8504)   EUR/GBP    0.8624
(EUR/USD – 1.3253)   EUR/USD    1.3057
(GBP/AED – 5.7234)   GBP/AED    5.5598
(GBP/AUD – 1.6392)   GBP/AUD    1.6523
(GBP/CAD – 1.5995)   GBP/CAD    1.5688
(GBP/CHF – 1.4476)   GBP/CHF    1.4365
(GBP/HKD – 12.0954)  GBP/HKD    11.7427
(GBP/INR – 88.455)   GBP/INR    90.864
(GBP/JPY – 150.99)   GBP/JPY    150.00
(GBP/NZD – 1.9545)   GBP/NZD    1.9266
(GBP/SEK – 10.1634)  GBP/SEK    10.0666
(GBP/ZAR – 15.454)   GBP/ZAR    15.204

Sterling

Sterling was struggling as it began the week still looming in the shadow of new Governor Carney’s comments. Things went from bad to worse though, as poor manufacturing and industrial production figures on Tuesday saw sterling’s value fall by a further cent to 3 year lows – hitting 1.4814 against a strong US dollar. Sterling has then spluttered through the rest of the week against a wide range of currencies with little UK news being released. However it did gain nearly two-and-a-half cent as the US dollar took a dive overnight on Wednesday. Today is similarly quiet for news, instead traders will be looking to a busy week ahead with inflation figures as well as the minutes from the recent Bank of England meeting. Get in touch today for the latest news and up to the second rates for sterling.

Euro

A similarly steady week for the euro as markets became accustomed to the disparity in tone on monetary policy coming from central banks around the world. One of the members of the European Central Bank clarified that not only was there unanimity on the recent rate decision, but also that interest rates would absolutely not be raised for at least 12 months. Overnight on Wednesday euro finally broke through 1.30 mark against the US dollar, and pushed sterling back below the 1.16 level. Today sees very little news released so it’s likely to be the same story again, but call your trader for an update.

US Dollar

A tumultuous week for the US dollar – flying high through the early part of the week as markets speculated over the imminent end to ultra-loose monetary policy stateside. The Federal Reserve had made comments which lead traders to believe that the conditions were right to begin winding up quantitative easing programs. Markets looked to a speech from the Chairman of the Federal Reserve to add certainty to their speculation – Chairman Bernanke went against all expectations as he explained that much more needed to be seen in inflation and employment figures before the tapering of quantitative easing could begin. The shock news caused the US dollar to plummet 2.5 cent, seeming to settle a new levels yesterday. Today sees the release of influential inflation figures, which have taken on extra weight after recent comments so the excitement may well continue today. Get in touch with us today for the very latest.

Worldwide

Elsewhere the commodity backed currencies; the Australian, Canadian and New Zealand dollars enjoyed a strong start to the week, as risk appetite grew. Concern over poor Chinese figures saw early gains slip away midweek however. The Japanese yen has been weathering the storm well, making gradual gains against most major peers. The Danish, Swedish and Norwegian currencies similarly fared well in the first half of the week, but dropped off on the news from the US on ending stimulus programs. Call your trader today for the latest news and live rates on your currency.

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

Posted July 11th, 2013 by Charles Purdy

US dollar weakens on Central Bank comments | Smart Daily Currency Note

GBP/EUR – 1.1556
GBP/USD – 1.5082
EUR/GBP – 0.8646
EUR/USD – 1.3043
GBP/AED – 5.5393
GBP/AUD – 1.6305
GBP/CAD – 1.5639
GBP/CHF – 1.4338
GBP/CNY – 9.2507
GBP/HKD – 11.6942
GBP/HUF – 338.92
GBP/INR – 90.227
GBP/JPY – 149.5
GBP/NZD – 1.9026
GBP/RUB – 49.2366
GBP/SEK – 10.0281
GBP/THB – 46.846
GBP/ZAR – 14.9626

Sterling

A fairly steady day for sterling yesterday as markets caught their breath after an eventful first half of the week. Sterling gradually won back a cent from overnight lows against the US dollar, as markets nervously took position ahead of the release of the release of Federal Open Market Committee (FOMC) meeting minutes last night. Following the release, we saw sterling appreciate by two and a half cent against a particular weak US dollar. This morning sees one of Mark Carney’s colleagues at the Bank of England speak; to which markets will look to clarify last week’s comments on interest rates. Call your trader today for the latest news and up to the second rates on sterling.

Euro

Steady as she goes for the euro yesterday, trading in a very tight range against sterling for the whole day – notably holding above 1.16. The European Central Bank today gives its monthly bulletin which is likely to reiterate recent comments saying that interest rates will remain at current levels or below for at least the next 12 months. Markets seem to have become accustomed to such comments, so we’re unlikely to see a dramatic move unless something considerably different is said. Get in touch with Smart today for live rates for the euro.

US Dollar

The US dollar slipped a little through London trading yesterday as traders positioned themselves ahead of last night’s FOMC meeting minutes, and the speech from Committee Chairman Bernanke. The US dollar weakened significantly following the comments from the Committee Chairman where he somewhat contradicted his previous statements on monetary policy and suggested that policy should remain accommodative due to low inflation and the fact that the labour market remains weak (in spite of last Fridays positive figures). The minutes from the FOMC meeting had less effect on the markets as the members of the FOMC appear to be split regarding when the potential tapering should begin. Today the excitement may well continue with the release of unemployment figures this afternoon. Call your trader for the very latest.

Worldwide

Elsewhere, no real change for the Japanese yen ahead of an anticipated statement on monetary policy this morning following on from last night’s news from the US. Concern over decreasing trade with China saw the Australian dollar end its two-day winning streak ahead of employment figures released overnight. Its antipodean counterpart, the New Zealand dollar, similarly slipped in spite of recent comments from the Finance Minister that interest rates were certain to rise. Get in touch with us today for the latest news and live rates for your currency.

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

Posted July 9th, 2013 by Charles Purdy

Is sterling set for further weakness? | Smart Daily Currency Note

GBP/EUR – 1.1622
GBP/USD – 1.497
EUR/GBP – 0.8603
EUR/USD – 1.2881
GBP/AED – 5.4988
GBP/AUD – 1.6286
GBP/CAD – 1.5761
GBP/CHF – 1.4456
GBP/CNY – 9.1742
GBP/HKD – 11.6127
GBP/HUF – 341.74
GBP/INR – 89.977
GBP/JPY – 151.31
GBP/NZD – 1.9018
GBP/RUB – 49.4437
GBP/SEK – 10.137
GBP/THB – 46.8
GBP/ZAR – 15.122

Sterling

After being pushed against the ropes overnight on Sunday – dropping to the lowest it has been since early March – sterling gained a little ground back against the dollar yesterday, pushing back above 1.49 again. The International Monetary Fund releases its World Economic Outlook today, with analysts saying it is likely that the UK will undo its recent downgrade and be forecast 1% growth in the next year. Key to that success will be the manufacturing sector, from which production figures are released this morning, with the expectation being that we will see growth return after a disappointing month. As long as the underlying data shows that recovery in the UK is gathering pace we can expect the pound to at least hold its own – if it goes the other way there is certainly room for even further weakness. Call in today for more news and up to the second rates for sterling.

Euro

Yesterday, the President of the European Central Bank President reiterated last week’s comments that interest rates would be kept at least as low as they are for the foreseeable as the economic climate does not warrant a rise. Markets appeared to have become accustomed to the disparity between the noises coming from Britain and Europe, and those coming from the States, as there was no reaction to his words, instead we saw euro recover slightly. Talks get underway today between finance ministers where the focus will again be the next tranche of aid for Greece – while progress has been made in Portugal by proposing a Deputy Prime Minister, both regions still represent a threat to both Europe and the euro. Call now for an update on rates and news.

US Dollar

After soaring to 4-month highs overnight, the US dollar had a fairly lacklustre day’s trading; losing ground to most major peers as speculation grew that it had gained too much. Between now and Wednesday’s release of minutes from this month’s Federal Reserve meeting exchange rates are likely to be driven by risk sentiment. Yesterday saw positivity growing – good news for the more risky currencies, bad news for the US dollar – so there is potential for some weakening for the US dollar. Nonetheless, with the labour market appearing to grow, and Wednesday’s announcement expected to further clarify plans to end the current ultra-loose monetary policy the outlook is largely positive for the US dollar. Get in touch today for the latest rates and news.

Worldwide

Yesterday, as today will be, was driven by risk and profit taking. As risk appetite grew, the Norwegian krone climbed by the most in 10 months – backed up by the feeling that its recent slide to almost three-year lows had been excessive. Similarly the Australian dollar, trading dangerously close to a three-year low against the US dollar, found a momentary lifeline thanks to a strong European stock market. The same could not be said for the Swedish krone, however, as manufacturing data came out worse than expected. The Canadian dollar rose from the lowest levels seen in almost two years as home construction data showed better-than-forecast figures. Overnight we saw the release of business confidence data from Australia and New Zealand, as well as inflation data from China. The rest of the day is a relatively quiet day on the data-front; with the only significant release being the Swiss monthly retail figures released first thing, risk will continue to be the key driver. Call your trader now for the latest on your currency pair.

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

Posted July 8th, 2013 by Charles Purdy

Sterling suffering badly as temperatures soar | Smart Daily Currency Note

GBP/EUR – 1.1599
GBP/USD – 1.489
EUR/GBP – 0.8617
EUR/USD – 1.2835
GBP/AED – 5.4698
GBP/AUD – 1.6434
GBP/CAD – 1.5734
GBP/CHF – 1.4355
GBP/CNY – 9.1409
GBP/HKD – 11.55
GBP/HUF – 342.87
GBP/INR – 90.809
GBP/JPY – 150.58
GBP/NZD – 1.9259
GBP/RUB – 49.5671
GBP/SEK – 10.1937
GBP/THB – 46.836
GBP/ZAR – 15.277

Sterling

A very tough end to the week for sterling, struggling as the US dollar stole the limelight. An ailing sterling dropped below 1.49 and 1.16 against the US dollar and euro respectively on Friday and after a fantastic weekend for British sport, we will have to see how the British currency fairs through the course of this week. The next five days is devoid of data from the UK save for manufacturing production figures released on Tuesday. Given the strength of the manufacturing figures released last week, we anticipate good news. Whether that will be enough to give sterling a helping hand to find some strength again remains to be seen. Get in touch for the latest news and up to the second rates for sterling.

Euro

The euro had a mixed end to last week; comments made by the European Central Bank President on Thursday after the interest rate decision lead to the euro hitting five week lows against the US dollar, but against an even weaker sterling the euro managed gains of 0.3% on Friday. Today, the President of the ECB speaks again, markets will be volatile as traders look for further evidence of forward guidance and openly interventionist policy. Today we also see the release of German trade balance figures, and on Wednesday we have industrial production data coming out of France and Italy. Call today for the latest news, and live rates for euro.

US Dollar

The US dollar soared on Friday, gaining a cent as employment data beat expectations. Markets saw this as a sign that the times are indeed ripe for tapering down loose monetary policy, and drove dollar to below 1.49 against sterling. This week the excitement continues – while the first half of the week is quiet for data, expect volatility to remain as traders place their bets ahead of the release of the minutes from this month’s FOMC meeting on Wednesday. Committee Chairman Bernanke speaks as well, and markets will hope that together they clear up speculation over the end of quantitative easing. More employment figures are released on Thursday, and inflation numbers on Friday so the question is; can the US dollar hold on – will it stay below 1.50? Call your trader now to find out.

Worldwide

Elsewhere, the Australian dollar and the New Zealand dollar weakened on Friday after both performing reasonably well earlier in the week. Looking ahead to this week, business confidence data coming from New Zealand on the Monday is likely to affect its currency’s performance whilst the Australian Dollar will rise or fall on the back of Wednesday’s consumer sentiment data and Friday’s employment data. The Indian Rupee also fared poorly at the end of last week as did Chinese Renminbi. This was due to a number of factors including continuing US dollar strength and signs that growth in the Chinese economy is slowing down. Some commentators have suggested that we can expect further weakness in the Asian currencies as soon as the imminently-expected scaling back of US bond-buying occurs. Call in now to stay on top of the markets and for live rates from your trader.

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

Posted July 5th, 2013 by Charles Purdy

New BoE Governor speaks, sterling plummets | Smart Daily Currency Note

(Last week)    This week
(GBP/EUR – 1.1687)     GBP/EUR – 1.1668
(GBP/USD – 1.5253)     GBP/USD – 1.5043
(EUR/GBP – 0.8552)     EUR/GBP – 0.8568
(EUR/USD – 1.3047)     EUR/USD – 1.2891
(GBP/AED – 5.6022)     GBP/AED – 5.5253
(GBP/AUD – 1.6473)     GBP/AUD – 1.6453
(GBP/CAD – 1.5967)     GBP/CAD – 1.5832
(GBP/CHF – 1.4432)     GBP/CHF – 1.4412
(GBP/HKD – 11.8291)     GBP/HKD – 11.6624
(GBP/INR – 91.079)     GBP/INR – 90.696
(GBP/JPY – 150.94)     GBP/JPY – 150.81
(GBP/NZD – 1.9534)     GBP/NZD – 1.9241
(GBP/SEK – 10.242)     GBP/SEK – 10.0543
(GBP/ZAR – 15.156)     GBP/ZAR – 15.098

Sterling

Yesterday’s expression of the day was forward guidance – indication from an interventionist central bank as to what they are going to do with interest rates into the future. In his first act at Governor of the Bank of England, Mark Carney issued a surprise statement yesterday which expressed the Bank’s concern over rising gilt yields, and said that any rise in interest rates which might erstwhile have been implied was not warranted. Markets read this as the MPC giving forward guidance that interest rates would remain at record lows for the foreseeable future, and sterling plummeted across the board, breaking below 1.16 and 1.51 against the euro and US dollar respectively. While we saw a little recovery against a similarly weak euro, sterling stayed at 5-week lows against the US dollar. Away from our new Governor, PMI figures released earlier in the week made it clear that the recovery is well underway showing growth across the board including particular strong figures from the services sector which saw sterling strengthen mid-week. Today is much quieter on the news front, and sterling will trade in the wake of yesterday’s announcement. With traders heading back to their desks in the US, we could well see more excitement, call Smart today to find out how things are looking.

Euro

After struggling through the week, with unemployment reaching new all-time highs and PMI figures disappointing, the euro took a further spill yesterday following the ECB meeting. Mario Draghi, President of the European Central Bank, joined the ranks of the interventionists when he said that, “ECB interest rates will remain at present or lower levels….for as long as necessary.” The unprecedented move to assure markets of future plans pulled the rug from beneath the euro, which dropped a cent against the US dollar on the news. The Portuguese question continues to hang around, as politicians battle to hold a straining coalition together. Call your trader today for the latest news and up to the second rates.

US Dollar

An up and down week for the US dollar; as traders continue to speculate if conditions are right to justify a reduction in asset purchasing facilities. The US dollar even weakened in spite of solid labour data which showed that the private sector put an extra 188’000 workers in employment, whilst the number of new people claiming for unemployment related benefits fell. The US dollar held its own on independence day, gaining against its major peers whilst sterling and the euro fell through the floor. Today, traders will be back at their desks, as a result, the markets will be far more liquid. Moreover, today see’s the release of the highly influential Non-Farm payroll data which will be closely watched given the labour data released earlier in the week and the Federal Banks comments that suggest that quantitative easing will only be tapered when the labour market has recovered to a greater extent. Get in touch now for live rates and news for the US dollar.

Worldwide

Elsewhere, the big story this week has been the Australian dollar which has seen both ends of a 4 cent range in two days. Assertions from the Reserve Bank of Australia that the Australian dollar would probably depreciate further if the economy needed it led the currency to 34 month lows on Wednesday, only to gain nearly 4 cent against sterling through trading yesterday as investors considered the likelihood of a further interest rate cut. The Japanese yen has also been struggling this week, seeing brief moments of strength as markets get nervous and look to de-risk. Today sees employment figures for Canada release with no major change forecast, and with the Canadian dollar having seen no move either way in the last week it seems unlikely that the trend will change today. Call your trader for up to the second rates, and the latest news, for your currency pair.

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

Posted July 4th, 2013 by Charles Purdy

Good services data boosts sterling | Smart Daily Currency Note

GBP/EUR    1.1731
GBP/USD    1.5239
EUR/GBP    0.8521
EUR/USD    1.299
GBP/AED    5.5986
GBP/AUD    1.6759
GBP/CAD    1.6036
GBP/CHF    1.4461
GBP/CNY    9.3405
GBP/HKD    11.8187
GBP/HUF    344.98
GBP/INR    91.529
GBP/JPY    151.84
GBP/NZD    1.9584
GBP/RUB    50.55
GBP/SEK    10.1987
GBP/THB    47.364
GBP/ZAR    15.323

Sterling

The strongest day in many weeks for sterling, as Services PMI figures blew forecasts out of the water to post a sixth consecutive month of better-than-expected growth. The sector, which makes up 75% of UK GDP, is performing better than any other area and sterling climbed over a cent in the two hours around the release. Today is Mark Carney’s first day in the public eye with the rate decision, and asset purchasing facility announced. We’re unlikely to see any dramatic changes today – especially in light of the positive data emanating from the UK this week, what will be perhaps more insightful is the minutes from the meeting which are released in a fortnight. Nonetheless, markets will be nervous, and with trading volumes low nervousness is exaggerated into volatility so call your trader to find out where sterling is trading right now.

Euro

A dramatic day for the euro as two Portuguese ministers resigned from government, prompting concerns over stability in the region and over the depth of Europe’s sovereign debt crisis. While the euro gained against a weak US dollar, nearly 1% was lost to both sterling and the Japanese yen. The political backdrop will continue to dominate affairs tomorrow, as well as the ECB’s rate decision and subsequent press conference this afternoon. Any change is unlikely, but traders will listen closely for any hints as to future monetary policy. With the holiday stateside, expect volatility to be far greater than normal around the conference. Call your trader today for the very latest news, and up to the second rates for the euro.

US Dollar

The US dollar had a torrid day yesterday in spite of solid labour data which showed that the private sector put an extra 188’000 workers in employment, whilst the number of new people claiming for unemployment related benefits fell. Despite this, speculation grew as to whether progress in the labour market is sufficient to justify a reduction in asset purchasing facilities. The trade deficit, the difference between imports and exports, increased dramatically last month to show that imports into the US are near all-time highs. Today the US celebrates Independence Day and banks will be closed. With traders away from their desks, markets will be much less liquid than usual, and therefore much more volatile. Call in for to-the-second live rates.

Worldwide

Elsewhere, the Japanese yen enjoyed a strong day, benefitting from a risk averse market to push back below 100 against the US dollar. As Australia posted a higher than expected trade surplus, the Australian dollar briefly saw strength, only to promptly fall as the Reserve Bank of Australia Governor said that the currency would probably depreciate further if the economy needs it. The South African rand continued to struggle yesterday – falling for a third consecutive day as Chinese services data disappointed. The Polish zloty strengthened following comments for the central bank suggesting that after the rate cut in July, the easing cycle would be brought to an end. The Governor of the Bank of Japan has been speaking overnight and we also saw the release of building approvals figures from Australia; however, little else is scheduled to be released today. Get in touch today for the latest news, and live rates for your currency.

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

Posted July 3rd, 2013 by Charles Purdy

Sterling continues to lose ground against the dollar | Smart Daily Currency Note

GBP/EUR – 1.1668
GBP/USD – 1.5142
EUR/GBP – 0.8568
EUR/USD – 1.2976
GBP/AED – 5.5621
GBP/AUD – 1.6708
GBP/CAD – 1.5974
GBP/CHF – 1.4379
GBP/CNY – 9.2855
GBP/HKD – 11.7419
GBP/HUF – 343.54
GBP/INR – 91.1
GBP/JPY – 152.52
GBP/NZD – 1.9619
GBP/RUB – 50.2576
GBP/SEK – 10.2097
GBP/THB – 47.04
GBP/ZAR – 15.228

Sterling

A strong construction sector did not make for a strong sterling yesterday. While Construction Purchase Manager Index (PMI) figures were the best they have been since May 2012, sterling still lost ground against the US dollar – pushing as low as 1.5150 against a bright US dollar in the early afternoon. Today the big news is the last of the PMI figures – Services which make up 75% of the UK’s GDP and has shown consistent growth, month on month, since February. The consensus expect slightly less growth than last month, but positive news nonetheless. If the release beats expectations – given the importance for the UK’s economy as a whole – expect sterling to strengthen. That being said, you can expect the market as a whole to remain nervous in anticipation of the Bank of England monetary policy meeting on Thursday where we will see Mark Carneys’ first rate decision as Governor. Not only that, but on the same day we will have the ECB’s decision on interest rates and decreased liquidity due to the US markets being shut in accordance to the 4th July Bank Holiday. Call your trader this morning for the very latest developments.

Euro

The euro was soft yesterday in a day that saw unemployment figures revised up to new all-time highs of 12.2%. While it held its own against a weak sterling during the course of the day only losing ground after close of business here, a dominant US dollar pushed it below 1.30, remaining below this key psychological level as we enter today. Services PMI figures are released in Europe today, with Spain and Italy releasing theirs just ahead of the general release for the Eurozone. In contrast to the UK, the outlook is not great – with the expectation being another month of contraction. Get in touch with your trader today for up to the second rates.

US Dollar

The US dollar enjoyed a strong day yesterday as factory orders exceeded expectations to post a second consecutive month of growth in manufacturing. With a bank holiday tomorrow for Independence day, expect volatility to be on the up over the next few days. Eyes will be on unemployment figures released today and Friday with the consensus expectations being cautiously optimistic. The labour market has long been linked with monetary policy in the US and with chatter about the end of monetary easing programs dominating affairs, good news would definitely boost the dollar. Call in now for the latest news and live rates for the US dollar.

Worldwide

Elsewhere, the Japanese yen failed to snap a 5 day trend as the US dollar pushed up through the key 100 mark once again. Strong figures from Japan appear to be having the opposite effect to anywhere else in the world, as markets are treating good news as a sign that ultra-loose monetary policy is working and will not be brought to an end soon.  The Canadian dollar slipped to a 20 month low after growth dropped last month, trade balance figures released this afternoon will drive volatility. Overnight we saw Australian retail figures and trade balance data released, but little else is expected to be released throughout the day bar the aforementioned  trade balance figures from Canada. Call your trader now for up to the second rates for your currency pair.

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

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