Your latest Currency Reports right here: Will UK data boost sterling? After a short period of relative weakness sterling held its own against the euro last week and gained ground against the US dollar as UK data supported the belief that the UK economy is on the road to recovery. UK data at the start of this week is limited with the Public Sector Net Borrowing data, which is mildly influential, being released tomorrow. Wednesday again proves to be the most important day for sterling, with the votes from the recent asset purchase and bank rate decisions by the Bank of England being released. While the overall results are known, the details of the exact votes are always of interest to investors, as they give a more in depth view on the situation. Is the Eurozone on the road to recovery? A steady week for the euro against sterling but against the US dollar it rallied to an eight and half month high. The main reason for the euro’s strength against the US dollar is probably more a result of events in the US rather than events in the Eurozone itself. This week Europe’s leaders meet at their autumn summit where banking union is likely to be discussed. Also this week we have the release of both the “flash” Purchasing Manger Indices for October for the Eurozone, Germany and France and the “flash” consumer sentiment data for the Eurozone. These data releases will be closely scrutinized as they will give a good feel for the state of the Eurozone economy and two of its key constituent countries. Will this week’s data help an under pressure US dollar? The US dollar continued its decline on Friday in the wake of the government shut down and its subsequent ramifications. Words from members of the Federal Open Market Committee pointed towards the fact that they would keep their bond buying process at the current levels, all but confirming investors suspicions that the tapering program will be held off for the foreseeable future. This pushed the US dollar towards lows against sterling and the euro. This week will see the dollar try to re-gather itself and recoup some of these losses and a raft of data to be released this week could play its part in helping it do so. Positive Chinese data gives world economy a boost Elsewhere on Friday, the most significant news came out of China as GDP figures for the third quarter were released. The 7.8% growth shown was up 0.2% from the previous quarter. The more positive data coming out of the world’s second largest economy combined with the news out of the US earlier in the week meant that the was a confident mood in the market come Friday afternoon. As a result, we saw the high-yielding Australian dollar hit 4-month highs against its US counterpart. We saw the Canadian dollar weaken significantly, hitting 2 year-lows against sterling, after a government report showed inflation remained at the low end of the Bank of Canada’s target band. out of the US earlier in the week meant that the was a confident mood in the market come Friday afternoon. As a result, we saw the high-yielding Australian dollar hit 4-month highs against its US counterpart. We saw the Canadian dollar weaken significantly, hitting 2 year-lows against sterling, after a government report showed inflation remained at the low end of the Bank of Canada’s target band. goldacreestates/Finance
Posted on: Mon, 21 Oct 2013 08:58:43 +0000
Trending Topics
Recently Viewed Topics
© 2015