Pound
Sterling strengthened slightly against the dollar and pared losses against the euro yesterday, bolstered by profit taking in the common currency, though its gains are expected to be limited due to concerns about the UK’s faltering economic recover. The pound also drew support from a slight recovery in risk appetite after less gloomy than forecast China manufacturing data and German factory activity numbers marginally eased global growth worries and helped stocks. Sterling was up 0.3 percent against the dollar, starting the day at around 1.6450 and settling at around the 1.6500 handle.
No major data due today.
Euro:
The European docket and headlines were generally weak yesterday. Euro zone PMI figures (often leading indi¬cators for growth) printed modestly better than expected, but they still matched multi-year lows. Far more discouraging were the biggest drop in regional investor confidence on record and a 14– month low in consumer sentiment. Add to that suggestions that Finland may refuse to participate in the second Greek bailout effort due to a collateral gaff, and things are looking downright dour. That said, this doesn't significantly alter the outlook. Yesterday we saw the euro climb against the greenback to reach a high of just below the 1.4500 handle before retracing to back below the 1.4400 area where it currently sits.
Data 09.00: German IFO Business Climate.
Dollar:
The US dollar has traded back and forth now for five consecutive days. This speaks more to the fundamentals and market conditions that we are facing more so than Tuesday’s single anti-dollar move does. Yesterday’s session saw the dollar fall against all but one of its major counterparts (the dollar managed a modest advance versus the Swiss franc). As mentioned previously, Federal Reserve Chairman Ben Bernanke is due to deliver a speech on Friday which may offer new steps to boost growth. Those expecting a new round of QE may well be disappointed as he and other Fed leaders view the current signs of economic weakness differently from how they viewed the economy this time last year and they want to see more evidence before making their next move.
Data 13.30: Core durable goods orders.
General:
• The yen rose against all its major counterparts after traders shrugged off Financial Minister Yoshihiko Noda’s announcement of a $100 billion effort designed to cope with persistent strength in Japan’s currency.
For more information or to request a call back click here
GBP/USD 1.6480
GBP/EUR 1.1440
EUR/USD 1.4390
GBP/JPY 126.20
GBP/AUD 1.5750
GBP/NZD 1.9900
GBP/ZAR 11.8910
GBP/CHF 1.3060
GBP/CAD 1.6320
GBP/SGD 1.9900
GBP/THB 49.20
GBP/HKD 12.8440
red-down; blue-up (snap shot)
These rates are for indication purposes only.
For more information or to get the latest spot rates contact:
John Paul Georgiou
Senior Foreign Exchange Broker
+44 (0) 20 7959 6917
Website:
For more information