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12 Mar 2015
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Euro sellers take a breather as GBP comes under pressure

United States Dollar: GBP/USD really struggled yesterday and has fallen below 1.49. BoE Governor Mark Carney was speaking on Thursday and his comments didn’t particularly help the pound’s cause. In a speech at the Advanced Manufacturing Research Centre in Sheffield he said "the bottom line is that there is a risk that the combination of persistently low global inflation and the strength of sterling could weigh on prices here for some time." This could mean UK interest rates stay on hold for longer and GBP/USD remains firmly on the back foot this morning at 1.4865. Weaker than expected US retail sales data, also released yesterday, failed to provide any kind of support to GBP/USD and this doesn’t bode particularly well for today’s run of data from the States.

We expect a range today in the GBP/USD rate of 1.4800 to 1.4950

Euro: Euro sellers have taken a bit of a breather over the last day or so and EUR/USD has flat-lined around 1.06. It’s recovered off of the sub 1.05 lows, seen earlier in the week, mostly as a result of profit taking. The US dollar has also retraced a little which has helped support EUR/USD around today’s opening level. There’s been a lot of negative rhetoric out of Europe recently, but the ECB’s Ewald Nowotny has recently been highlighting a few immediate positive side effects of the huge QE programme, namely a lower euro, which should support the Eurozone’s export sector over coming months. He went on to deny this was the start of some sort of currency war. The euro has also recovered vs. the pound and GBP/EUR has drifted back towards the 1.40 big figure over the last 24 hours.

We expect a range today in the GBP/EUR rate of 1.3960 to 1.4100

Aussie and Kiwi Dollars: AUD/USD steadily advanced above .7700 yesterday as the US dollar gave up some of its gains. It slipped back from its .7730 highs since though and opens in London at .7660. NZD/USD has ticked lower too and trades at .7330 currently. A solid Business NZ Manufacturing PMI wasn’t enough to stop the rot in the kiwi overnight. Both currencies are fairly steady against the pound though and GBP/AUD and GBP/NZD trade at 1.9400 and 2.0265 respectively.

We expect a range today in the GBP/AUD rate of 1.9300 to 1.9490

We expect a range today in the GBP/NZD rate of 2.0150 to 2.0350

Data Releases

AUD: No data

EUR: No data

GBP: Construction Output m/m, MPC Member Haldane Speaks

NZD: No data

USD: PPI m/m, Prelim UoM Consumer Sentiment, Prelim UoM Inflation Expectations

If you want instant updates on movements in the FX market and fast access to the UKForex daily commentary, follow us on twitter at http://twitter.com/ukforex or @ukforex

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12 Mar 2015
Share

Euro sellers take a breather as GBP comes under pressure

United States Dollar: GBP/USD really struggled yesterday and has fallen below 1.49. BoE Governor Mark Carney was speaking on Thursday and his comments didn’t particularly help the pound’s cause. In a speech at the Advanced Manufacturing Research Centre in Sheffield he said "the bottom line is that there is a risk that the combination of persistently low global inflation and the strength of sterling could weigh on prices here for some time." This could mean UK interest rates stay on hold for longer and GBP/USD remains firmly on the back foot this morning at 1.4865. Weaker than expected US retail sales data, also released yesterday, failed to provide any kind of support to GBP/USD and this doesn’t bode particularly well for today’s run of data from the States.

We expect a range today in the GBP/USD rate of 1.4800 to 1.4950

Euro: Euro sellers have taken a bit of a breather over the last day or so and EUR/USD has flat-lined around 1.06. It’s recovered off of the sub 1.05 lows, seen earlier in the week, mostly as a result of profit taking. The US dollar has also retraced a little which has helped support EUR/USD around today’s opening level. There’s been a lot of negative rhetoric out of Europe recently, but the ECB’s Ewald Nowotny has recently been highlighting a few immediate positive side effects of the huge QE programme, namely a lower euro, which should support the Eurozone’s export sector over coming months. He went on to deny this was the start of some sort of currency war. The euro has also recovered vs. the pound and GBP/EUR has drifted back towards the 1.40 big figure over the last 24 hours.

We expect a range today in the GBP/EUR rate of 1.3960 to 1.4100

Aussie and Kiwi Dollars: AUD/USD steadily advanced above .7700 yesterday as the US dollar gave up some of its gains. It slipped back from its .7730 highs since though and opens in London at .7660. NZD/USD has ticked lower too and trades at .7330 currently. A solid Business NZ Manufacturing PMI wasn’t enough to stop the rot in the kiwi overnight. Both currencies are fairly steady against the pound though and GBP/AUD and GBP/NZD trade at 1.9400 and 2.0265 respectively.

We expect a range today in the GBP/AUD rate of 1.9300 to 1.9490

We expect a range today in the GBP/NZD rate of 2.0150 to 2.0350

Data Releases

AUD: No data

EUR: No data

GBP: Construction Output m/m, MPC Member Haldane Speaks

NZD: No data

USD: PPI m/m, Prelim UoM Consumer Sentiment, Prelim UoM Inflation Expectations

If you want instant updates on movements in the FX market and fast access to the UKForex daily commentary, follow us on twitter at http://twitter.com/ukforex or @ukforex

Learn more about