Good morning Mid prices GBPEUR 1.3090 GBPUSD 1.5220 For dealing prices: [email protected] or 966 260 777 Franc Fallout Boosts Dollar on Growing Demand for Haven The dollar traded 0.6 percent from an 11-year high against the euro after the Swiss National Bank roiled financial markets by unexpectedly scrapping the franc’s cap, spurring demand for safer investments. The single currency headed for its biggest weekly loss versus the yen since April 2012 amid speculation the European Central Bank will announce bond buying on Jan. 22. The franc fell about 4 percent today versus the dollar and euro after surging as much as 38 percent and 41 percent against the currencies yesterday, respectively. A gauge of foreign-exchange volatility climbed to the highest in more than a year. The dollar traded at $1.1644 per euro as of 7:20 a.m. in London from $1.1633 yesterday, when it gained 1.3 percent and touched $1.1568, the strongest level since November 2003. It rose 0.3 percent to 116.53 yen, halting a five-day slide. The sterling is following the rest of the risk-associated assets on Friday, pushing GBP/USD to challenge the 1.5200 barrier. The current offered tone around the greenback is allowing the ongoing rebound in the pair, looking to break above the overnight consolidation pattern around 1.5180. Spot slowly continues to rebound from the recent lows near 1.5020 (January 8th), although its advance greatly depends on the USD dynamics. The next events of relevance in the UK economy will come next week, starting on Wednesday with the BoE minutes and the labour market report, and followed by the retail sales results on Friday. EUR/GBP traded almost unchanged in the early European session, after German CPI stagnated to five year low in December. The EUR/GBP pair now trades flat at 0.7665 levels, having posted days’ low at 0.7651 and day’s high at 0.7673 levels. The EUR/GBP remained unaffected after German consumer prices ended last year muted, strengthening the case for additional European Central Bank (ECB) stimulus. Price pressures in Germany dropped to a mere 0.2% y/y during the final month of the past year in December, the weakest figure since October 2009. While m/m figures remained unchanged after the zero growth seen in the previous month. Traders now await Euro Zone Union CPI data due later for fresh cues on the currency pair. Have a good day! infinityinternational.co.uk
Posted on: Fri, 16 Jan 2015 09:48:57 +0000
Trending Topics
Recently Viewed Topics
© 2015