With uncertainly floating around the UK over what might happen with the interest rate, GBP took a dip which is not helped by the fact that it is looking more and more likely that the interest rate will only be raised towards the end of next year and not in the middle of 2015 as initially thought. We also saw figures yesterday that indicated that mortgage approvals have fallen to the lowest level in 14 months for England and Wales. The biggest knock to GBP might be, though, that Fed’s decision to finally halt QE in the United States.
The Eurozone was even more uneventful – swung about by the dollar (mostly) and pound, it’s been a case of waiting for the other two measures (along with buying covered bonds) the Eurozone leaders are looking to implement to save the day. These will be an asset backed securities programme, and fixed rate loans for banks.
From the States yesterday we saw news that the Federal Reserve would finally bring some closure to the QE they’ve had in place for some time now. At its peak, we saw about $85Bn being injected into the US financial system a month – now, it can be surely seen as a massive vote in confidence in the state of the US economy.
Elsewhere, NZD took a 2% hammering after the Fed’s announcement – the New Zealand Reserve Bank Governor then announcing he’d keep interest rates on hold (3.5%).
FC Exchange is a trading name of Foreign Currency Exchange Limited. Registered office: Salisbury House, Finsbury Circus, London, EC2M 5QQ. Registered No.5452483. Authorised by the Financial Conduct Authority (No.511266) under the Payment Service Regulations 2009 for the provision of payment services. HM Revenue & Customs MLR No.12215508. Copyright © 2013 Foreign Currency Exchange. All Rights Reserved.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.