Pound:
Sterling rose against the dollar on Monday due to speculation of hefty demand by a UK bank, while it rallied against the euro, which struggled broadly as European officials played down the possibility that aggressive plans were emerging to help Greece deal with its debt. The pound was boosted initially by talk of a UK clearer needing to convert dollars into sterling as part of its quarterly dividend payment. This fed into broad demand , which pushed sterling to a session high of $1.5555. Sterling managed to claw its way back to the 1.1500 handle. Despite its gains yesterday, the pound remained vulnerable to selling versus the dollar on concerns a fragile UK economy could prompt the Bank of England to resort to more monetary easing.
Data 11.00: CBI Realised Sales.
Euro:
The euro held gains in early Asia this morning, following a sudden turnaround in investor mood from extreme skepticism to tentative optimism that Europe was finally putting a plan together to deal with its debt and banking crisis. The euro is currently trading around the $1.3520 level against the greenback, having rallied from an eight-month low of $1.3360 on Monday. A steady drip feed of reports about how the euro zone authorities were considering bolder steps to tackle their problems lifted the mood, though many hurdles lie ahead. One plan involves setting up a special purpose vehicle to buy distressed debt from banks and issuing them with new paper that could be exchanged with the European Central Bank. The euro zone is still facing plenty of hurdles, including votes this week in Finland and Germany on the earlier EFSF structure. The Greek government votes on Tuesday on new austerity measures needed to secure aid.
No major data due today.
Dollar:
The dollar held a two-day drop against the euro as Asian stocks extended their rally in global equities, damping demand for the US currency as a refuge. The dollar traded at $1.3520 per euro this morning in London from $1.3360 yesterday in New York. Commerce Department data yesterday showed that sales of new homes in the US dropped 2.3 percent to a 295,000 annual pace last month, compared with the 293,000 estimated by economists. The dollar Index, which tracks the greenback against the currencies of six major US trading partners, slid for a second day. The gauge sank 0.6 percent to 77.927 , after a 0.2 percent drop the previous day. All eyes shift toward today's only major data, CB confidence, which is expected to come in at 46.2 , rising from August's 44.5.
Data 15.00: CB Consumer Confidence.
General:
• The New Zealand dollar's 7.2 percent decline the past month is helpful to exporters while also reflecting weaker commodity prices, according to Prime Minister John Key.
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red = down blue = up (snap shot)
These rates are for indication purposes only |
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