Yesterday saw BoE Governor, Mark Carney, speak before the Treasury Select Committee where he was seen to state that the currently low level of inflation is related to the depressed oil prices we’ve seen this year. This did contribute towards a drop for GBP to 1.4112 against EUR, and we even saw the BoE’s Chief Economist state that there might even be a cut in the interest rate because of weak inflation and global economic conditions. With GBP having made big gains against the commodity currencies at the start of the year, the pressure has been applied to low inflation levels – one knock-on effect being lowered exports. The close relationship with a struggling Europe has been an issue, too, in terms of weakened trade.
In Europe, Germany’s GDP came in as expected at 0.3%, which is coupled by the positive manufacturing and services data wesaw on Monday. IFO business climate data was also strong there, adding to positive sentiment and overall optimism, when it came in at 109 instead of the predicted 108.3. With there being renewed talk of furthering ECB quantitative easing, will Germany’s performance put the brakes on increased/prolonged QE?
In the States yesterday, we saw house prices improve and Q3 GDP figures revised from 1.5% to 2.1%, while personal consumption numbers were seen to drop and last month’s trade balance and exports declined. Consumer confidence was seen to drop-off as well for this month. Despite this mixed situation, it is still widely thought that the Fed will raise interest rates next month. Overall, the dollar looked good against the pound as it hit 1.5052 yesterday.
In terms of data today, we’ll see durable goods orders for last month, along with initial jobless claims and both Markit services PMI and PMI composite readings.
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
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.