The Dollar managed to find some support yesterday, rising 0.2% against the Euro and a modest 0.1% versus the Pound following a report on the U.S housing market, which showed an unexpected rise in the purchases of new homes. Sales jumped by the most in 14-years in April, rising 16% to an annual pace of 981,000 and the report provides the single biggest indication that lower lending rates and added incentives are slowly spurring demand. Home construction has seen its worst recession since 1990 over the past two years, which correlates with the slowest pace of economic expansion in since 2003. New home sales accounts for roughly 15% of total home sales in the U.S and is widely considered the leading indicator of the housing market, which is slowly showing signs of recovery. In terms of economic data, the focus today will fall on the sales of previously owned homes with economists anticipating a no change from the previous month following the biggest monthly drop in 18-years. Coinciding with the report yesterday, it seems that the biggest slump in housing has finally reached its peak and will begin to contribute towards economic growth in the second half of the year. Elsewhere, the Dollar also received a boost as orders for durable goods rose for the third straight month in April and provides an insight into the recovery in the U.S manufacturing sector.
The Euro has endured three days of losses against both the Pound and the Dollar this week and that trend continued yesterday despite a seemingly positive report on German business confidence. The Munich based Ifo sentiment index remained unchanged at a near-record reading of 108.6 in May and suggests that Europe’s largest economy will continuing expanding at the fastest pace in seven years. The prospects of the German economy continue to look positive despite the VAT increase at the start of the year and the increased value of the Euro, which threatens to curb export demand. Elsewhere, a separate report this morning showed that German consumer confidence rose to the highest level in five months in April as a rise in economic growth combined with increased wage growth helped improve household spending.
The Pound is heading for its first weekly gains against the Dollar in nearly a month and has also improved dramatically versus the Euro amid speculation that the Bank of England will continue raising interest rates in the near-to-medium term. Prior to the minutes from the May policy-setting meeting, the Pound had been struggling against the majors with inflation felling below a decade high at 3.0% as four rate hikes since August looked to be having the desired effect. The Pound managed to consolidate on the recent gains made yesterday as the Confederation of British Industry released their monthly industrial trends survey. The report showed that growth in manufacturing underpinned initial expectations and reinforced the chances of further monetary tightening in July or August. The UK currency has continued to advance in early trade this morning ahead of the revised estimate of UK economic growth in the first quarter, which is expected to conform that the economy maintained the pace of expansion in the first three months of 2007.
The Euro declined for a second consecutive day against the Pound, dropping 0.3% by the close of trading last night while also holding near a six-week low versus the U.S Dollar despite a seemingly positive report on German investor confidence. The ZEW Centre for Economic Research said its index of investor and analyst expectations increased to a reading of 24.0 in May, the highest level since June 2006 as economists raised their forecasts for economic growth this year. The report yesterday provides an insight into the pace of economic expansion, which has seen the economy grow at the fastest pace in seven years. European economic growth has continued to gather momentum despite consistently higher interest rates and the introduction of the value-added tax increase at the start of the year, which has prompted the government to raise its forecast for 2007 to 2.3% from 1.7% previously estimated. However, the Euro failed to capitalise on the strength of the ZEW survey and declined against both the Pound and the Dollar. In terms of economic data, the single currency may find some support this morning as German industrial orders are expected to advance 1.2% in March while rising to an annual rate of 7.1%. Although, given the overwhelming strength of the Euro in recent months, orders are expected to fall significantly in April as the single currency rose to a record high against the U.S Dollar.
The Dollar managed to rise modestly against the Euro yesterday and also held near a six-week high versus the Pound despite the distinct lack of economic data released this week. The recent strength of the U.S currency can be attributed to a sharp rebound in factory production and manufacturing output although the Dollar’s recovery may be short-lived given that a number of medium-term factors that still pointed to weakness. In addition, the Dollar was supported by comments yesterday from the president of the Federal Reserve Bank of Richmond, Jeffrey Lacker, who seemed to suggest that inflationary pressures still remain a concern to policy makers despite slower growth. In the last four monetary policy setting meetings, Lacker has been the sole voice for a further rise in U.S interest rates and the hawkish tone of his speech yesterday further established his belief that price pressures are set to drift higher.
The Pound has been slowly making significant strides against the Euro over the past few trading sessions and also increased 0.1% versus the Dollar by the close of trading last night. The focus today will heavily on the release of the minutes from the Bank of England’s last policy meeting where the MPC elected to lift interest rates for the fourth time in this tightening cycle to 5.50%. The nine-strong committee elected that a 25 basis point rise in the benchmark lending rate would be necessary in order to stabilise inflation, which has accelerated to the fastest pace in a decade this year. However, the voting pattern of the decision will be eagerly anticipated with the committee expected to have voted 8-1 in favour of a rise this month with David Blanchflower likely to lean towards a cut. If the outcome of the minutes proves indecisive and the committee’s decision split, the Pound may come under some severe pressure against both the Euro and the Dollar.
The Pound managed to claw back some moderate gains against the Euro yesterday but continued to decline versus the U.S Dollar as a gauge of UK house prices advanced at slowest pace in five months. The report yesterday provided a strong indication that an increase in affordable housing combined with higher interest rates are slowly beginning to curb demand and thusly slow the booming UK property market. In addition, a separate report yesterday from the British Bankers’ Association confirmed that a demand for mortgages is weakening, down 3.0% from a year earlier as the highest benchmark lending rate on six years discourages first time buyers. The Bank of England have lifted UK interest rates on four occasions since last August in a desperate bid to quell inflation but it is estimated that mortgage repayments have risen by up to £120 a month on a £200,000 property.
The Euro lost ground against Sterling yesterday and also fell an additional 0.4% versus the U.S Dollar despite the fundamental lack of economic data released in the Euro-zone. From a strictly technical perspective, the Euro has spent the last few trading sessions consolidating below the trend support at 1.4600 against the Pound but a sharp bounce back towards 1.4650 yesterday could help turn the technical outlook positive. In terms of economic data, the single currency may receive a timely boost this morning as the ZEW centre for economic research release the monthly expectations balance, which is expected to confirm that German investor confidence rose this month. The current conditions measure of the ZEW survey will be of particular interest to investors as the German economy continues to enjoy a period of rapid growth with the report this morning expected to increase the chances of further monetary tightening.
The renewed appetite for the Dollar continued yesterday as the U.S currency again made crucial gains against the Euro and also rose 0.3% versus the Pound to briefly trade under 1.9700. In recent months, the Dollar has declined to the lowest level in 26-years against the Pound and also fallen to a record low versus the Euro amid fears that global central banks may diversify their foreign exchange reserves away from the U.S currency. In addition, the dramatic slowdown in the housing and manufacturing sectors threatened to push the economy towards inevitable recession but recent reports have provided an indication that a weak Dollar is boosting demand for U.S exports while the downturn in the property market looks to have peaked.
Following on from last week, the lacklustre performance of the Pound continued despite the hawkish tone of the Bank of England’s quarterly inflation report, which seemed to suggest that a further tightening of monetary policy would be required in the near-to-medium term. That sentiment is expected to be further emphasised in the minutes from the Central Bank’s last policy meeting released on Wednesday. The nine strong committee elected to lift UK interest rates by a further 25 basis points this month and the voting pattern of the eventual decision will be eagerly anticipated. The monetary policy committee are expected to have voted 8-1 in favour of a rise this month with the likely dissenter being David Blanchflower. However, should the outcome of the minutes prove indecisive and the committee’s decision split, the Pound may come under some severe pressure against both the Euro and the Dollar. In terms of economic data, the Pound has fallen modestly this morning as a gauge of UK house prices rose this month at the slowest pace since December. Prices only climbed 0.4% to an average £237,361 compared to a 3.5% gain in April and the report provides an indication that an increase in supply combined with higher interest rates are slowly helping to cool the property market.
The resurgence of the Dollar has been the general theme over the past couple of weeks as the U.S Currency continues to make robust gains against both the Pound and the Euro. Confidence in the U.S economy has been somewhat restored over the past month as the rebound in manufacturing continues to gather momentum while the worst slump in housing for over 17-years is showing some signs of abating. There is a sparse supply of economic data released in the U.S this week with the focus falling on durable goods orders and the latest round of housing sales data.
The Euro has continued to make rapid gains against Sterling over the past week as we look to test the support level around 1.4600 while the single currency has come under some surprising pressure versus a resurgent U.S Dollar. That theme is set to continue over the coming trading sessions as a host of economic reports are expected to confirm further that the German economy performed better than previously anticipated. The current conditions measure for the ZEW survey of investor confidence is forecast to rise to a reading of 79.0 from 76.9 the previous month. In addition, the IFO survey for business sentiment is also expected to rise to a record level in May with both indices likely to strengthen expectations that European interest rates will continue to rise beyond June.
The Pound came under renewed pressure yesterday, falling 0.4% against the U.S Dollar and a further 0.1% versus the Euro to trade at lowest level in two months following the release of the Bank of England’s quarterly inflation report. The hawkish tone of the Central Bank reinvigorated the chances of another 25 basis point rise in UK interest rates but said that inflation was expected to moderate back towards target in the final quarter. The UK economy has expanded at the fastest pace in two years and the BoE reiterated yesterday that GDP growth has been maintained in the first quarter while credit and money growth remained consistent with previous estimates. With regards the future projections of UK inflation, the report reiterated that inflationary pressures remain to the upside in the medium term although were expected to moderate back towards the 2.0% target by the final quarter. As a result, the Pound declined against the Euro, dropping towards the lowest level this year at 1.4575 despite a separate report that showed UK unemployment fell to the lowest since 2005. However, average hourly earnings growth unexpectedly slowed in April, dropping to 4.5% from 4.6% the previous month, which suggests that inflation is clearly falling with earnings being the third indicator that has surprised to the downside.
The Euro advanced against Sterling yesterday but declined unexpectedly versus the U.S Dollar despite a host of hawkish statements from a number of ECB governing council members who reiterated the need for further monetary tightening. Earlier this month, the chairman of the Central Bank, Jean-Claude Trichet, gave a strong indication that interest rates would rise for the seventh time in little over a year in June. Initially, the single currency made rapid gains yesterday after the final estimate of Euro-zone inflation remained unchanged at 1.9% in April. The harmonised consumer price index came in slightly stronger than expected and suggests that risks to price stability remain a concern to policy makers. There is a sparse supply of economic indicators released in the Euro-zone this morning with the focus falling on the ECB monthly bulletin, which will probably contain the same hawkish tone as the accompanying statement and enhance the chances of a quarter-point rate hike in June.
The positive sentiment surrounding the Dollar continued yesterday as the U.S currency made widespread gains against most major currencies following the renewed optimism in the housing market. Builders started work on more new homes than anticipated in April with housing starts rising 2.5% from the previous month, suggesting that worst slump in the sector in 17-years is finally showing signs of abating. However, a separate gauge of the report showed that the number of building permits filed for new construction actually saw the slowest pace of growth in ten-years. In addition, a report earlier this week showed that the NAHB index of builder confidence sank to another decade low and the assumption that growth in the property market may accelerate over the coming months may be a touch premature. Elsewhere, the Dollar managed to consolidate on the recent gains made against the Pound as U.S industrial production increased beyond expectations in April. Factory output was up 0.7% on the month and it seems evident that a weak dollar as provided a reprieve for manufacturing as recent reports have reflected a revival of growth in the sector.
The Pound came under significant pressure against the majors yesterday, dropping close to the lowest level this year versus the Euro and closing last night under 1.9875 against the U.S Dollar. The decline of the Pound was instigated by a drop in consumer price inflation last month, which fell from a decade high of 3.1% in March to 2.8% in April. The report also highlighted that UK inflation exceeded the Bank of England’s 2.0% target for the twelfth consecutive month. Combined with the unexpected rise in UK factory-gate inflation over the same period, it seems evident that higher interest rates have yet to cool the economy. Nevertheless, the Pound continued the downward momentum against the Euro, despite the report increasing the chances of further monetary tightening this year. In terms of economic data, the Pound may receive a timely boost this morning with UK unemployment expected to stay unchanged at 5.5% in April. The focus is likely to fall on a separate gauge of the report, which may show that average hourly earnings jumped from 4.6% in February to 4.8% in the three months leading to March. Policy makers within the BoE’s monetary policy committee will be watching earnings growth closely as higher interest rates put downward pressure on consumers’ disposable income. Elsewhere, the BoE’s quarterly inflation report is likely to dominate and the theme of the report will be watched closely following a fourth interest rate hike in under a year.
The Euro continued to make gains yesterday, rising 0.4% against the Dollar and a further 0.2% versus the Pound following the flash estimate of European economic growth in the first quarter. The Euro-zone economy expanded by more than forecast in the first three months of the year as increased business investment supplements higher interest rates and the introduction of the German VAT increase at the start of the year. The economy grew 0.6% in the first quarter, which was slightly above initial expectations as European companies increased investment after strong export growth led to the fastest expansion in seven years. However, the Euro has appreciated over 10% against the Dollar over the past six months and reached a record high in April, which may hamper EU exports and weigh heavily on economic expansion over the coming months. The Euro may struggle to consolidate on the recent gains made against the Dollar this morning as the final estimate of Euro-zone consumer prices is expected to show that inflation remained unchanged at 1.8% in April and under the Central Bank’s 2.0% target.
By the close of trading last night, the Dollar had declined against the Pound and also fell significantly versus the Euro following a report from the Labour department, which showed that U.S inflation was abating. Consumer prices rose less than forecast in April, increasing 0.4% from March to an annual pace of 2.3%, which may prompt the Federal Reserve to lower interest rates sooner than previously anticipated. The Fed have previously estimated that inflation would moderate as the economy continues to slow and the report yesterday heightens the chances of monetary easing in the second half of the year. In addition, the Dollar failed to find a reprieve as a separate report showed that manufacturing activity in the New York state expanded at a faster pace for the second consecutive month in May as foreign investors sought cheaper goods from the U.S. Recent reports from the Institute of Supply Management have suggested that a recovery in manufacturing will soften the impact of the dramatic slump in housing over the last year, which has contributed to slowest pace of economic growth in nearly 5-years.
The Pound remained largely unchanged against the majors yesterday, falling a modest 0.1% versus the Euro following a host of positive economic reports as UK producer prices rose for a fifth straight month in April. The so called factory-gate inflation grew 0.5% from the previous month, which underlines concerns within the Bank of England that companies will continue to hike prices and stoke the current inflationary pressures. Over the past month, the Bank of England had to publicly account for the fastest pace of consumer price inflation in over ten-years and therefore the index this morning will be of particular interest to policy makers. Consumer prices are expected to have moderated to 2.8% year-on-year in April after increasing to the highest level since 1997 in March with UK inflation staying above the 2.0% target for the 12th consecutive month. The report may provide further evidence that higher interest rates have yet to cool the economy and following the BoE’s decision to lift rates last week, we can expect at least one more quarter-point increase this year. Elsewhere, the Pound also remained firm after a separate report yesterday showed that UK house prices rose 1.1% in March with the average cost of home up to £206,890. The report from the Department for Communities and Local Government mirrors recent figures from the Nationwide and Halifax, which have both shown buoyant growth in the housing market this year.
The positive sentiment surrounding the Euro continued yesterday as the single currency remained firm against the Dollar and also rose modestly against the Pound despite a fundamental lack of economic indicators. Euro-zone industrial production increased beyond initial expectations with the headline figure up 0.4% in March although downward revisions in February left output virtually unchanged. The sustained and unrelenting strength of the Euro in recent weeks is expected to have a negative impact on European exports, which has previously supported the fastest economic expansion in six years. In terms of economic data, the focus today will fall heavily on flash estimate of Euro-zone GDP in the first quarter and the Euro may come under some pressure if the report shows that growth has stagnated in the first three months of 2007. Recent reports in Germany have indicated that investors are becoming increasingly concerned over the direction of economic growth and the figures this morning may show that the annual pace of GDP slowed to 2.9% from 3.3% in the final three months of 2006.
The Dollar managed to consolidate on the recent gains made against Sterling yesterday as we continue to trade well underneath the trend support at 1.9875 with further downward movement expected over the coming weeks. There is a host of significant economic indicators released this afternoon that could potentially influence the Dollar with the focus falling on the monthly consumer price index. The headline measure of U.S inflation rose to 2.8% year-on-year in March, primarily as a result of near-record fuel prices. Consumer prices are widely expected to rise for a fifth straight month in April with core inflation forecast to moderate to an annual pace of 2.6% last month. The U.S economy has been growing at the slowest pace in nearly four years in the first quarter although that has yet to cool inflation, which will keep the Federal Reserve from cutting interest rates in the near-to-medium term. In addition, the Dollar may also find support from the Empire State index as manufacturing in the New York region accelerates dramatically in May and provides further evidence of a revival in the sector. However, a separate report from the National Association of Home Builders’ may show that the renewed weakness over the past two months will portray further softening in the U.S housing market in May.
Following on from last week, the Pound managed to remain fairly unchanged against the majors on Friday after dropping significantly versus the Dollar following the Bank of England’s decision to lift interest rates by just 25 basis points. In terms of economic data, the Pound received a timely boost on Friday as a report from the National Institute of Economic and Social Research showed that the UK economy expanded at 0.7% in the first quarter. Economic expansion matched the same pace as in the final three months of 2006 following the dramatic increase in service sector growth, which accounts for two thirds of UK gross domestic product. In a statement released last week, the BoE said that economic growth is ‘firm’ while upside risks to inflation remain, which provides an indication that the Central Bank intends to lift rates further this year. The focus this week will fall largely on the quarterly inflation report, which should provide an insight into last week’s much anticipated rate increase. While elsewhere, the monthly consumer price index should reiterate upward inflationary pressures as retail price inflation moderates slightly from a decade high in March although a hawkish report should be supportive of the Pound.
The Euro has managed to continue making modest gains against Sterling as the European Central Bank gave a firm indication that Euro-zone interest rates are set to rise next month. The positive sentiment surrounding the single currency is likely to gather momentum this week as the ECB monthly bulletin is expected to reiterate the hawkish tone of the press conference, cementing an interest rate hike to 4.00% in June. Elsewhere, the final estimate of the harmonised consumer price index will be released later this week and is expected to show that the annual rate of inflation stayed below the Central Bank’s 2.0% ceiling for the sixth consecutive month. The tone of the recent statement from the chairman, Jean-Claude Trichet, seemed to indicate that rates will peak in the near-to-medium term as inflation continues to fall over the coming months. In terms of economic data, the Euro may come under modest pressure this morning as a gauge of industrial activity in the Euro-zone may show that production dropped in March. The Euro has risen to a record high versus the Dollar in recent weeks and that should weigh on factory output as Euro-zone exports become less attractive to foreign investors.
The resurgence of the U.S Dollar continued to gather momentum last week, closing under the trend support at 1.9875 versus the Pound and also consolidating on recent gains made against the Euro. Dollar buyers would be well placed to work a stop order in the market to protect against any further downside movement despite a host of seemingly damaging economic reports. Growth in the U.S retail sector unexpectedly slowed in April with sales dropping 0.2% from the previous month as higher fuel prices and falling home values weighed on sentiment. The report will heighten concerns that a drop in consumer spending, which accounts for over two thirds of the economy, would continue to slow economic growth. Elsewhere, the Dollar remained firm as a separate report from the labour department showed that U.S wholesale prices rose just 0.7% last month. Excluding the volatile food and energy gauge, producer prices remained unchanged for a second consecutive month in April and the figures point to a gradual easing of price pressures, which will allow the Federal Reserve to keep interest rates steady.
The Pound came under severe pressure against the majors yesterday, dropping 0.4% versus the Euro and a further 0.9% against the U.S Dollar despite the Bank of England’s decision to lift UK interest rates to the highest level in six years. Recent reports have suggested that consumer spending, which accounts for a large proportion of economic growth, has continued to accelerate in the first quarter despite the BoE lifting rates on three occasions since August. In addition, robust expansion in the labour market combined with strong housing sector growth drove UK inflation to 3.1% in April, the highest in a decade. As a result, there was widespread speculation that the monetary policy committee would adopt a more aggressive policy by raising interest rates 50 basis points and the focus now will fall on the minutes from the meeting released later this month. Elsewhere, the Pound failed to find any support has a host of economic reports suggested that UK manufacturing expanded by the most in ten months in March. Factory production rose 0.6% with exports increasing by the most since August, a sign that strong growth in Europe is bolstering demand for British based goods. Earlier in the day, a separate report from HBOS plc showed that UK house price increased at the second fastest pace in nearly two years last month, which provides an indication that the Bank of England will need to continue lifting rates beyond 5.50%.
The Euro managed to claw back some gains against Sterling yesterday but came under further pressure versus a resurgent U.S Dollar as the European Central Bank kept interest rates on hold in May. The outcome of the two day meeting was widely anticipated by the market and in the accompanying press conference, the chairman of Central Bank signalled for more rate increases to come. Jean-Claude Trichet has historically used a specific tone and language in his tenure as chairman of the ECB and yesterday announced that “strong vigilance is of the essence to ensure that risks to price stability do not materialize.” In each of the past seven months prior to a rate hike, Trichet has used the exact same terminology and as a result, the Euro may continue to make gains leading up to the June announcement. The Euro-zone economy has been performing at the fastest pace in six years and concerns are still mounting that companies may increase prices and wages, which would only stoke the current inflationary pressures.
The Dollar managed to make rapid and significant gains against the Pound yesterday, crashing through the trend support at 1.9875 following the Bank of England’s decision to lift rates by just 25 basis points. The resurgence of the U.S currency came about despite a seemingly negative report from the Commerce department, which showed that America’s trade deficit had widened by more than forecast in March. The gap in goods and services trade expanded 10.4% from the previous month to nearly $64 billion as higher oil prices drove the biggest increase in imports for over four years. Nevertheless, the Dollar continued to make gains and that may continue this afternoon despite a report on U.S retail growth, which is expected to show that sales increased 0.4% in April. Consumer spending has supported economic expansion this year and further growth in the retail sector is likely to keep the Federal Reserve from cutting interest rates in the medium term. However, initial forecasts suggest that retail sales probably increased at the slowest pace in three months in April as near-record fuel prices combined with falling home values weighed on sentiment.
The Pound continued to make significant gains against the majors yesterday, rising 0.4% versus the Euro and the Dollar as we build up to the Bank of England interest rate announcement this lunchtime. The monetary policy committee are widely expected to lift the benchmark lending rate to 5.50%, the fourth quarter-point increase since August last year and the highest since April 2001. Over the past few weeks, there has been widespread speculation that the nine-strong committee including the governor Mervyn King may adopt a more aggressive policy since UK inflation is currently at the highest level in over ten years. However, following the downward revisions in service sector growth the chances of a 50 basis point jump are remote and as a result, the Pound may come under some pressure this afternoon if the Bank of England elect to lift rates by just a quarter of a point. In terms of economic data, the Pound has continued to advance this morning as the latest report on the UK property market showed that house prices rose in April at the second fastest pace since mid 2005. Elsewhere, Sterling may continue to strengthen in the build up to the announcement as a separate report this morning may show that industrial production accelerated in March with output up 0.5% from the previous month despite the profound strength of the UK currency. In addition, the Prime Minister Tony Blair is widely expected to announce his retirement today and may lend his support to the Chancellor Gordon Brown who handed the Bank of England the authority to set interest rates after coming to power ten years ago.
The Euro failed to capitalise against the Dollar yesterday and also came under further pressure versus the Pound as German exports unexpectedly declined in March, leading to speculation that a strong European currency would begin to slow the economy. The focus today will inevitably fall on the European Central Bank rate announcement this afternoon with the governing council expected to hold the benchmark lending rate at 3.75% in May. However, in the accompanying press conference the chairman of the ECB, Jean-Claude Trichet, is widely expected to signal a further quarter-point rise in June. The market has factored in a strong chance that rates will rise to 4.00% next month and we will be looking for a specific tone and language in the statement this afternoon with the term “strong vigilance” historically used as a sign rates will rise the following month.
The Dollar managed to hold steady against the Euro yesterday as the Federal Reserve elected to hold U.S interest rates at 5.25% for the seventh consecutive meeting while the accompanying statement was little changed from the previous month. It seems that the Fed chairman, Ben Bernanke, is unfazed by the weakest economic growth in four years as he reiterated his hawkish stance on inflation. The Open market committee remains concerned that U.S inflationary pressures have failed to moderate over recent months and that is likely to keep policy makers from cutting interest rates over the medium term. In terms of economic data, the Dollar may come under further pressure this afternoon amid a host of economic reports with the U.S trade deficit expected to widen for the first time in three months in March. The gap between imports and exports may grow above $60 billion as the price of crude oil rose over the same period to the highest level in six months.
Daily Foreign Exchange Rate Forecast – The Pound slumped below $1.54 against the U.S Dollar yesterday
by Adam Solomon
Sterling / Euro and US Dollar
The Pound slumped below $1.54 against the U.S Dollar yesterday, while UK government bonds rose, after further losses in global stocks boosted demand for fixed-income and the Dollar as a haven. The Pound stayed lower against the Dollar, as a report from the Bank of England showed that... Read more
Foreign Exchange Daily Forecast – The Pound rallied against the Euro yesterday
by Adam Solomon
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The Pound rallied against the Euro yesterday, rising above 1.2150, while the UK currency also made modest gains versus the majority of the 16 most actively traded currencies, with the exception of the U.S Dollar, which is gaining on risk sentiment. Sterling gained for a third straight day... Read more
Canadian Dollar Foreign Exchange Rate Forecast – Canadian second quarter growth figures due out today
by Jon Beddell
Foreign Currency Market Update – GBP / CAD Update
A slight upward revision to the UK’s second quarter GDP figures to 1.2% did little to lift Sterling last week as investors focus on the longer term impact of the government’s austerity measures. On the other side of the Atlantic the US suffered a... Read more
South African Rand Foreign Exchage Forecast – The market enjoys a relatively stable period
by Jon Beddell
Foreign Currency Market Update – GBP / ZAR Update
It’s not surprising to see this market enjoying a relatively stable period. The dominant theme in the markets right now is that there are two major currencies in play. The US dollar…and everything else! As evidence of a new economic slowdown continues... Read more
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