The US Dollar had one of its worst days in some time yesterday falling against most of the Majors. The Euro lead the way managing to climb from around 1.31 to above 1.34 in a day although it has come off a little this morning.
Euro strength has come from fading concerns about the Eurozone sovereign debt problems and the fact that the ECB look least likely to extend quantitative easing measures. The risk of QE2, as it is increasingly referred to, seems to be a massive driving force in the markets at the moment as both the Fed and the BoE have not ruled it out.
Sterling was hurt by the release of the MPC minutes yesterday which seemed to suggest that the possibility of them extending QE had increased. Andrew Sentance once again voted for a 0.25% rate increase with everyone else voting to keep it on hold but his views are becoming increasingly at odds with the rest of the committee.
Today we have a little data out which could change the current conditions starting with the German Purchasing Manager Index for both services and manufacturing which came in worse than expected highlighting the fact that the Eurozone is not without its faults.
Later today we have the UK mortgage approvals and the US Jobless claims and home sales figures. With the USD on the back foot investors will be looking at the US data for any sign of a faltering recovery.
Posted in Daily Market News on May 30 2014
GBP/USD - Both currencies are weakening but USD is weakening faster. If you are exporting and being paid in USD - now might be a good time to ocnsider locking in a forward contract price. This will ensure your profit is protected.VIEW FULL ARTICLE
Posted in Daily Market News on Sep 22 2010 by admin