Your Latest Currency Reports - Sterling highs continue!! Todays Rate: GBP/EUR – 1.1841 This week’s raft of positive data from the UK continued yesterday as services’ purchasing managers’ index (PMI) data came out with strong figures, surpassing expectations to add to those for construction and manufacturing seen over the past few days. Each of these releases has given strength to the pound, as they have a positive effect on the country as a whole and have resulted in the Organisation for Economic Co-operation and Development (OECD) raising the UK’s growth forecast from 0.8 to 1.5%. As the markets grow confident that the UK’s economic recovery is well underway, this feeds into market speculation as to when the Bank of England may look to raise interest rates, in spite of the new Governor of the Bank of England’s forward guidance policy. This leads in to today’s events, namely the Bank of England’s interest rate decision, and the subsequent statement from the Monetary Policy Committee that sometimes follows. At present, no change in the level of quantitative easing or interest rates is expected, but any comments from the central bank may give an indication as to changing feelings on when interest rates may be hiked and will therefore be closely scrutinized. Euro has mixed day following disappointing retail sales The euro had a mixed day yesterday, as varying data and external influences saw it reach a new three-month low against sterling before recovering slightly. Performance against the US dollar, however, was slightly improved as the pair traded within a narrow range throughout the morning, before moving sharply in the euro’s favour during the late afternoon. Monthly sales figures for the Eurozone failed to live up to expectations as they revealed marginal growth of 0.1%. Italian Services data disappointed, showing greater contraction than was expected, but conversely Spanish Services figures were markedly better than expected, revealing some growth as opposed to the contraction that was expected. Today, expect euro performance to be influenced by the European Central Bank (ECB) press conference following their rate decision. Interest rates are widely predicted to remain at 0.5%, but investors will be paying close attention to the statement that follows to get further insight into future monetary policy. goldacreestates/Finance
Posted on: Thu, 05 Sep 2013 12:58:15 +0000
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