The Euro closed slightly weaker versus the Pound on Friday as there were fresh concerns surrounding the German economic outlook. German imports were unable to hit targets at 1.1%, printing in at -0.7%. German exports showed similar problems as they were unable to meet expectations that were set at 0.25%, failing by -2.60%. Finally, German trade balance figures came in at €19.4 Billion, again failing to hit the target of €22 Billion.
Last Friday saw UK Consumer Inflation Expectations printing at 2.2%, higher than the forecasted 2%. However, these expectations may alter as the uncertainty created by the August interest rate cut begins to make itself felt. UK Trade Balance figures for July also just missed forecasts of -£11.600 Billion, coming in at -£11.760 Billion.
The British Chambers of Commerce (BCC) has slashed its growth forecast for the UK in light of the Brexit vote. 2017 forecasts have been lowered to 1.0% from 2.3%. The UK currency will remain vulnerable to downward pressure if risk appetite declines and especially if oil prices drop.
The Dollar gained some ground ahead of Friday’s US trading session, following the Fed's Rosengren made a speech in Boston. He commented that lower interest rates are increasing the chances of the US economy overheating, a hawkish comment that has fuelled hopes of a September rate hike.
There has been some increase in speculation that the Federal Reserve will look to tighten monetary policy on September 21st, defying market expectations, increasing the potential for volatile trading conditions in the lead up.
Data To Watch: There is no tier one data today.
Photo credit - Kieran Clarke
Posted in Daily Market News on Sep 12 2016
The European Central Bank (ECB) chose to leave its current monetary policy measures in place yesterday. More surprisingly, in the press conference, Mr Draghi stated that there had been no discussion of any extension to the bond purchase programme.VIEW FULL ARTICLE
Posted in Daily Market News on Sep 9 2016 by William Kemp and the Sales Team