Sterling struggled yesterday versus the US Dollar as investors retrieved their collective nerve. The UK continued to be weighed down heavily by market participants with expectations that, given the fears over the Chinese economy, the Bank of England could be up to a year away from an interest rate hike. Today’s economic releases from the United States will consist of the Gross Domestic Product figure, which may be influential for the Pound’s performance against the Greenback.
The single Currency outpaced both Sterling and the US Dollar yesterday. Now that the Greek tin can has been kicked down the road and the debt woes have been staved off for now following its agreement on a third bailout deal, institutional investors appear content to hold their funds overnight with the ECB.
China's turbulent stock markets rose in overnight trade. This was helped by a strong recovery on Wall Street as expectations the Federal Reserve will react to days of China-led volatility by delaying an expected interest rate rise next month.
Trepidations over China's slowing growth have been rising all year with a drip-feed effect potentially weakening economic data. This has been seen in an official purchasing managers' survey conducted by Reuters last week that suggested factory activity contracted this month at its sharpest pace in just over six years.
Manufacturing activity this week confirmed a sharp downturn. An unanticipated depreciation of the Yuan two weeks ago added to concerns that Beijing was worried about its exporters, which have led the way for two decades.
Posted in Daily Market News on Aug 27 2015
Asian shares struggled on last night as investors feared fresh cuts in China’s interest rate would not be able to stabilise a slowing economy or stop a further breakdown in Chinese stocks that is currently causing havoc in worldwide markets.VIEW FULL ARTICLE
Posted in Daily Market News on Aug 26 2015 by The Currency UK Sales Team