Sterling had a mixed day yesterday weakening off against the majority of currencies in the morning before strengthening against most in the afternoon.
Sterling had a mixed day yesterday weakening off against the majority of currencies in the morning before strengthening against most in the afternoon.
Currency rates - May 16
EURO/GBP - 1.2570
US$/GBP - 1.5964
CHF/GBP - 1.5101
CAN$/GBP - 1.6148
AUS$/GBP - 1.6132
ZAR/GBP - 13.345
JPY/GBP - 128.29
HKD/GBP - 12.3991
NZD/GBP - 2.0851
SEK/GBP - 11.509
AED/GBP - 5.8631
US$/EURO - 1.2698
INR/GBP - 86.72
Data out yesterday revealed that the UK posted a slightly larger trade deficit than anticipated. The Bank of England inflation report will be the main focus today as investors look for signs that further quantitative easing could be implemented in the upcoming months.
The euro suffered further losses today as it was confirmed that Greece is set to have a new election in June after it failed to form a government despite multiple efforts. The euro started the day on a more positive note as GDP figures came in flat when a contraction was expected. This was largely to do with the much better than expected German preliminary GDP figures. Contrary to this, German ZEW economic sentiment figures came in much worse than the markets anticipated. Greece will form a temporary government today and whilst Consumer Price Index (CPI) data is released, the global focus will remain firmly on Greece; so call in now for the latest news and a live quote.
The US dollar strengthened further still with the markets extremely risk adverse due to speculation of a Greek exit from the euro. A bad day on the data front showed that retail figures had dropped by more than expected and figures depicting the change in the price of goods and services purchased by consumers came in flat.
Elsewhere, the Reserve Bank of Australia released its latest monetary policy minutes yesterday, stating their belief that the rate cut in May was necessary to stimulate growth. Data from Australia and Japan was released over night and manufacturing sales from Canada is released later on today.
http://www.youtube.com/watch?v=at1_TQv4EBI&feature=youtu.be