Dear Subscriber, Please find below today's update which gives you an insight into the current market conditions, enabling you to keep informed and up to date on the latest currency movements. GBPEUR/GBPUSD The Pound remained largely unchanged against the Euro yesterday, hovering around the 1.25 level for the majority of the day. The UK currency declined significantly versus the U.S Dollar, falling below 1.59, as risk sentiment weakened in line with escalating concerns surrounding Greece and the Euro-zone debt crisis as a whole. In the UK, the latest unemployment data was stronger-than-expected with a decline in the claimant count of 13,700 for April, following a revised decline the previous month. The jobless rate also declined to 8.2%, from 8.3% previously. Although the drop was primarily due to an increase in part-time employment, the figures masked the overall state of the labour market. In the Bank of England's quarterly inflation report, the MPC lowered its growth and inflation forecasts for the two year outlook. The main focus on the report tended to be the bank's news conference with the governor Mervyn King stating there were substantial risks and uncertainties resulting from the Euro-zone debt crisis. With lowering inflation forecasts and warning over the Euro-zone, there was additional speculation that the BoE will sanction additional quantitative easing over the next 2-3 months, especially if Euro-zone conditions deteriorated further. Although the Pound dipped to lows close to 1.59 against the Dollar, it was still able to secure defensive demand as benchmark yields fell to record lows and consolidated just above this level. The decline in risk sentiment continued through the course of the day with stocks and commodity markets falling sharply. Nonetheless, the Australian and New Zealand Dollars rebounded from five months lows, amid speculation that the recent downside moves were excessive. The currencies rose versus the majority of the majors, as Asian stocks actually advanced last night for the first time in seven days. The move overnight was largely due to the result of the FOMC minutes released yesterday, which showed that some policy makers said further monetary easing may be required should the economy lose momentum. The suggestion of further quantitative easing by the FOMC saw the Dollar weaken from a four month high against the Euro. EUR/USD There were further fears surrounding the Greek situation yesterday and continuing speculation over the threat of a Euro-zone exit with confirmation that new elections will be held on 17th June. The ECB said it will temporarily stop lending to some Greek banks to limit its risk, as President Mario Draghi signaled the Central Bank won't compromise on key principles to keep Greece in the Euro-zone. There was also speculation that the ECB was looking to hold an emergency meeting and in this environment there will be wider fears surrounding the European financial sector and the contagion threat if there was a Greek exit. In the U.S, the latest housing data was stronger-than-expected with an increase in the number of new builds on the month to the highest level in three years.
If you need any further assistance, or require a live dealing quote - please do not hesitate to contact me on 01736 335250 or send an email to info@torfx.com Regards,
TorFX Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions. Unauthorised copying or re-wording of this content is prohibited. The copyright of this content is owned by Tor Currency Exchange Ltd. Any unauthorised copying or re-wording will constitute an infringement of copyright. | 
No comments:
Post a Comment