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. Headlines • UK Unemployment slides to 7.7% - claimant count down, Sterling up.
• GBP/EUR at 7.5-month high - EC meeting ignored by currency traders.
• Pound hits 7-month high vs. US Dollar - risk aversion recedes.
• RBNZ to hike rates in H1 2014 - 'Kiwi' Dollar rallies 1.1 cents.
Sterling Sterling's strong run of form continued yesterday as UK Unemployment data came in stronger-than-anticipated. The headline jobless rate fell from 7.8% to 7.7% - the lowest since this time last year - and the claimant count declined by -36,300 to its lowest level since February 2009. The unexpected drop in the headline rate supports the market view that UK interest rates will need to be raised before the Bank of England's current projected date of mid-2016. Sterling rocketed higher upon the release of the data. It was also reported that 80,000 people found work between May and June, which was significantly higher that the median expectation of just 55,000. The Pound was also supported by a positive revision to last month's claimant count total; July's adjusted -36,300 fall was the steepest decline since June 1997.
Euro The biggest event of the day, in terms of socio-political importance, was European Commissioner José Manuel Barroso's annual State of the Nation speech, however, the most significant event of the day, in terms of the Pound to Euro exchange rate, was the surprisingly resilient UK Unemployment report. Sterling advanced by around 0.4 cents to reach a fresh 7.5-month high against the single currency in response to the strong British labour market figures. Over in Strasbourg Barroso regurgitated the kind of rhetoric that keeps UKIP up at night and puts children to sleep; he continued to argue the case for a "stronger", "more integrated Europe" and urged policymakers to help establish a credible banking union across the 17-nation bloc and beyond. The EC Commissioner's words of cautious optimism regarding the nascent recovery were tempered with some morbid, but accurate, comments on the Eurozone's labour market crisis: "The current level of unemployment is economically unsustainable, politically untenable and socially unacceptable". The Euro was unmoved by the discussion that took place at the European Parliament.
US Dollar Sterling stampeded its way to a fresh 7-month high against the US Dollar yesterday, appreciating by around 0.8 cents as investors reacted positively to the unexpectedly strong UK labour market figures. There were no important ecostats released in the United States yesterday, which left the 'Greenback' vulnerable to Sterling rallies. The Dollar was also weakened as defensive inflows dried up in response to enhanced optimism that military intervention in Syria could be averted.
Canadian Dollar The Pound climbed higher by around half a cent against the Canadian Dollar yesterday thanks to the robust UK jobs figures. The receding threat of Western military action in Syria is having a dual affect on the Canadian Dollar: on the one hand the apparent calming of political waters is reducing demand for Canada's largest export, crude oil, but on the other it is driving investors back into riskier assets and this is lending the 'Loonie' some support.
Australian Dollar GBP/AUD grew by around 0.75 cents yesterday as UK Unemployment fell one notch closer to the Bank of England's 7.0% forward guidance threshold. With interest rates looking increasingly likely to be raised before 2016 the 'Aussie' was unable to compete against the Pound yesterday despite a positive 4.7% print in the Westpac-Melbourne Institute Index of Consumer Sentiment.
New Zealand Dollar Sterling rallied by around 0.7 cents against the New Zealand Dollar yesterday as an increase in the number of people employed in Britain bolstered demand for the Pound. However, GBP/NZD tanked by -1.1 cents during the evening as the RBNZ said that it intends to raise interest rates in the first half of 2014. 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