Sterling lost over 1 percent against the euro yesterday after the European Central Bank declared it is too early to decide on further stimulus The euro had hit a one-month low versus the pound the previous day on talk the ECB would beef up its 1 trillion euro plus asset-buying programme. But it gained 1.2 percent on Monday, its biggest one-day rise since late August, to trade at 73.26 pence. The announcement to the European Parliament in Brussels the ECB chief Mario Draghi said an evolving market slowdown had increased the risks to European inflation and growth and that the central bank needed more time to decide on its reaction.
The Pound’s performance against the US Dollar has been weak since Tuesday morning, falling 1.8% to 1.5279 having reached a low of 1.5229. Comments from the BoE’s Broadbent that the lower skilled economy is reversing and is helping to boost average real wages, have gone largely unheeded. Today’s US durable goods orders in August is expected to fall to 2.3% from July’s 2.2% and is likely to weigh over the rate hike bets in the US possibly leading to a technical correction against Sterling. On the other side of the coin, a positive result could see Sterling lose another Cent. Fed chairwoman Janet Yellen’s lecture in Massachusetts could also weigh over the GBP/USD in case she talks up 2015 rate hike expectations, which the markets have now priced in as most likely March 2016.
Major Data to watch today is the Eurozone’s Long Term Refinancing Operations and from the US Initial Jobless Claims, Durable Goods Orders and New Home sales.
Posted in Daily Market News on Sep 24 2015
Last night, George Osborne gave a speech in Shanghai where he announced that he wanted to create a link between the stock markets of the UK and China. He touched upon a "landmark feasibility study" which would enable the Chinese and British shares to be freely traded in both countries.VIEW FULL ARTICLE
Posted in Daily Market News on Sep 23 2015 by William Kemp, Sales Director & The Sales Team