GBP boosted by optimistic jobs data

GBP boosted by optimistic jobs data

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 12th of June. 

Here are MyCurrencyTransfer.com’s top 5 currency highlights:

  • GBP boosted by optimistic jobs data
  • EUR runs out of steam, signals for ECB move on rate cut
  • USD on defensive; battered owing to Asian sales
  • Nomura estimates larger trade deficit for Japan in May
  • AUD up for action on dismal May employment figures

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1762
GBP/USD – 1.5664
GBP/CHF – 1.4474
GBP/CAD – 1.5958
GBP/AUD – 1.6494
GBP/ZAR – 15.6583
GBP/JPY – 150.3799
GBP/HKD – 12.1625
GBP/NZD – 1.9674
GBP/SEK – 10.2238

Mid-market rates as of 2013-06-12 14:16 UTC

Key releases in the next 24 hours that may affect currency date:

Australia: No Data
Europe: EUR Euro-Zone Industrial Production w.d.a. (YoY) (APR)
United Kingdom:  GBP Claimant Count Rate (MAY), GBP Jobless Claims Change (MAY), GBP Average Weekly Earnings (3M/(YoY)) (APR), GBP ILO Unemployment Rate (3M) (APR), GBP Employment Change (3M/3M) (APR),
New Zealand: NZD Reserve Bank of New Zealand Rate Decision (JUN 13)
United States of America: USD Monthly Budget Statement (MAY)
China: No Data
Canada: No Data
Japan: JPY Japan Buying Foreign Bonds (Yen) (JUN 7), JPY Japan Buying Foreign Stocks (Yen) (JUN 7)

GBP boosted by optimistic jobs data

Wednesdays’s London session witnessed positive data being reported by UK Office of National Statistics with respect to overall level of UK unemployment having declined by 5,000 in the three months ending in April.  The optimistic news boosted the GBP against several important peers. GBP/EUR pair rose up to 1.1805 earlier on.

EUR runs out of steam, signals for ECB move on rate cut

The EUR/USD pair seemed to run out of steam during today’s trading session. Analysts observe that Draghi has implied recently in one of his press meets that there needs to be considerable worsening of the data for the ECB to sanction a further rate cut.

USD on defensive; battered owing to Asian sales

USD appeared to be on the defensive during Wednesday’s trading session with Dollar Index breaching the 82.00 level. The greenback continued to remain resilient, however this was masked somewhat by Asian central bank increasing sales of the USD.

Nomura estimates larger trade deficit for Japan in May

Nomura economists have indicated a larger than present trade deficit in May, with the first rise in real exports being witnessed in over two months. According to their estimates, nominal trade deficit is ¥1,232.7bn. After adjustment they estimate a deficit of ¥963.5bn, much larger than the deficit of ¥764.4bn in April.

AUD up for action on dismal May employment figures

AUD is expected to be rattled in the next 24 hours as its economy is expected to shed 10000 jobs in May. Unemployment rate also is expected to rally to 5.6% despite a dip in the participation rate. It must be remembered that a dismal report will increase speculation for another rate cut as the Reserve Bank of Australian (RBA) as the bank aims to encourage a stronger recovery.

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