Archive: August2014

Pound bounces across the board in whippy conditions

31 Aug 2014
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United States Dollar: GBP/USD drifted lower on Friday although it did spike to a high of 1.6610 as the London session finished. It eventually fell to a low of 1.6564 very late on but has staged a rapid recovery in Asia to open this morning at 1.6630…

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UK Consumer Morale Improves

29 Aug 2014
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Rising consumer confidence in the UK and a hike to 2014 GDP forecast by the BCC earlier this week have cemented hopes for a steady recovery in the nation. Market attention has now shifted to the BoE policy meeting scheduled next week amid signs of debate among policymakers and the recent contrasting comments by the Governor.
Across Europe, next week’s ECB meeting will be keenly watched, if today’s inflation report surprises on the downside. Additionally, markets will keenly watch developments in Eastern Europe after the Ukrainian President stated that Russian forces have invaded the region. Across the Atlantic, an upward revision to the US second quarter GDP data has boosted expectations of an early hike in interest rates.

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UK Consumer Morale Improves

29 Aug 2014
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Rising consumer confidence in the UK and a hike to 2014 GDP forecast by the BCC earlier this week have cemented hopes for a steady recovery in the nation. Market attention has now shifted to the BoE policy meeting scheduled next week amid signs of debate among policymakers and the recent contrasting comments by the Governor.
Across Europe, next week’s ECB meeting will be keenly watched, if today’s inflation report surprises on the downside. Additionally, markets will keenly watch developments in Eastern Europe after the Ukrainian President stated that Russian forces have invaded the region. Across the Atlantic, an upward revision to the US second quarter GDP data has boosted expectations of an early hike in interest rates.

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BCC Hikes UK GDP Forecast For 2014

28 Aug 2014
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In its third quarter update released overnight, the British Chamber of Commerce hiked its UK economic growth forecast for this year to 3.2% from the previous estimate of a 3.1% growth. However, it lowered export growth forecasts for the next two years and warned that it might impact long-term growth unless policymakers do more to promote a balance.
The Euro nudged higher against the majors yesterday amid speculation that the ECB might not resort to further stimulus measures in its policy meeting scheduled next week unless this month’s inflation report signals that the region is moving closer to deflation. Across the Atlantic, markets will closely watch today’s revised GDP data for further direction.

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Dollar slips ahead of key US economic data

27 Aug 2014
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United States Dollar: Month end buying of GBP/USD saw the pair climb to a high of 1.6602 yesterday. There wasn’t any economic data to disrupt the move higher, either from the UK or the US and its held firm going in to the London session, openi…

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Markets Take a Breather

27 Aug 2014
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Upbeat durable goods orders and consumer confidence reports in the US continues to suggest that the economic recovery in the world’s largest economy remains steady. On the contrary, recovery in the Euro zone has run into the sand as evident by the recent set of dismal macro reports in the region. With a light global economic calendar today, markets will keep a close watch on a slew of macro data from the US and Europe later this week, especially the US revised GDP numbers along with inflation reports from most of the European nations for further cues on their respective future policy stance going forward.
With less than four weeks to go until the Scottish referendum on 18 September 2014, majority of the business leaders have urged Scotland to cast a no vote.

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NZD bounces on positive news from Fonterra

26 Aug 2014
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United States Dollar: The US dollar strengthened yesterday after U.S. durable goods data jumped in July. Demand for these goods rose by 22.6% from the previous month and was the biggest rise on record. An increase in commercial aircraft demand was …

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UK BBA Mortgage Approvals Fall

26 Aug 2014
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Data just out has indicated that UK mortgage approvals fell unexpectedly for July. This coupled with falling house prices in the nation earlier had eased some concerns of a potential development of a bubble in the UK housing market. Meanwhile, over the weekend, the BoE Deputy Governor, Ben Broadbent has indicated that wage growth is unlikely to show an improvement for some more time, dampening expectations of an earlier than expected rate hike in the nation.
With the ECB standing pat on its decision to unveil further stimulus, recent weak economic data have further lent support to the need of additional measures in order to boost recovery in the Euro area ahead of next week’s monetary policy meeting. Across the Atlantic, today’s housing market data will be keenly eyed following a mixed picture painted by the recent housing market data in the nation.

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Euro sinks as Draghi vows to do more on inflation

25 Aug 2014
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United States Dollar: It was a public holiday in the UK yesterday so trading in GBP/USD was fairly muted. The dollar did weaken on Friday afternoon though following Fed Chair Yellen’s speech at the Jackson Hole Symposium. There was somewhat o…

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Low inflation big topic for Europe

22 Aug 2014
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The recent history shows that the former Fed Chairman, Ben Bernanke, during his tenure utilised the annual Jackson Hole symposium to deliver hints about initiatives that the Fed was likely to embrace in the future. With the recent hawkish FOMC minutes lifting the bar among traders in terms expectations from the current Fed Chief, it remains to be seen if Janet Yellen matches the standards set by her predecessor.
In contrast, market participants will look for cues on the probability of potential policy easing by the ECB President, especially considering persistent low inflation in the Euro bloc. Additionally, the BoE Deputy Governor, Ben Broadbent’s speech scheduled tomorrow will attract increased market attention for hints on the BoE’s future course of action.

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