Sterling Sterling suffered again versus the dollar in early trading as the Greenback continued its rout on the pound. Better economic data from the States, coupled with the dovish comments from the BoE and its new steward Mark Carney, led to a drop in Cable. Today is relatively quiet in the UK for economic data; only the BRC Retail Sales Monitor and RICS Housing Price balance data to contend with, the latter being a reasonable barometer for the UK’s economic recovery. Euro Poorer German Factory Orders hindered euro progress on Friday. The Single Currency plummeted through the $1.30 support mark as US strength compounded the euro’s decline. Today we have already had a number of minor releases from Germany: Trade Balance, Current Account, Exports and Imports mostly missed estimates leading to a fall in the euro. We also have Industrial Production to come from Europe’s biggest economy as well as Investor confidence for the European Economic Area as a whole. The announcement to watch out for will be the speech by Mario Draghi due out later today. US Dollar The dollar continued to surpass it counterparts as speculation over an end to QE was reiterated by better Non-Farm Payrolls data. Since Ben Bernanke’s tapering comments the dollar has reclaimed lost ground against its counterparts; with the Dollar Index going as high as 84.53. These levels haven’t been seen since 2010 and mark a potential major change in the US. Today’s only events in the US will be a number of Treasury-Bill auction.
Posted on: Mon, 08 Jul 2013 12:00:53 +0000