GBP ends week on strong note, outlook remains positive

GBP ends week on strong note, outlook remains positive

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 10th of June. 

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

  • GBP ends week strong, outlook remains positive
  • ECB will remain accommodative, expects moderate Eurozone growth
  • Fed Plosser’s comments boost USD
  • Yen set for more action in run-up to BoJ meet
  • CAD outperforms peers on positive jobs data

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1749
GBP/USD – 1.5528
GBP/CHF – 1.4558
GBP/CAD – 1.5833
GBP/AUD – 1.6467
GBP/ZAR – 15.7699
GBP/JPY – 153.3171
GBP/HKD – 12.0550
GBP/NZD – 1.9691
GBP/SEK – 10.2371

Mid-market rates as of 2013-06-10 10:32 UTC

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

Australia: No Data
Europe: EUR Euro-Zone Sentix Investor Confidence (JUN), EUR Italian Gross Domestic Product s.a. and w.d.a. (YoY) (1Q F)
United Kingdom:  GBP RICS House Price Balance (MAY)
New Zealand: No Data
United States of America: No Data
China: No Data
Canada: CAD Housing Starts (MAY)
Japan: JPY BSI Large All Industry (QoQ) (2Q)

GBP ends week strong, outlook remains positive

GBP ended last week’s session on a strong footing with coming weeks being relatively light with respect to data releases except for Tuesday’s NIESR quarterly GDP growth estimate for the three months to the end of May. Investors holding on to GBP denominated assets will be looking for equal or better gains than 0.8% of last month as an evidence of a healing British economy.

ECB will remain accommodative, expects moderate Eurozone growth

European Central Bank member Coeure conceded that the central bank will keep its monetary policy accommodative as long as necessary. German ECB representative Weidmann stated that the German economy has overcome its weak phase and is likely to witness good growth and recovery. Market participants however expect that this recovery will depend on Euro-area stabilization.  Meanwhile Italy’s GDP for Q1 declined by 0.6% decline as compared to the expected level of decline at 0.5%. Euro continues to trade in the region of 1.3225 against the USD.

Fed Plosser’s comments boost USD

USD advanced against all its peers on Friday following positive US nonfarm payrolls (NFP) numbers coming in towards the end of the week at 175,000. Positive comments from Fed’s Plosser on Friday also added further strength to the USD.

Yen set for more action in run-up to BoJ meet

The Bank of Japan meeting tomorrow is expected to impact yen movement this week.  Today better than expected data was released including Japanese Current Accounts as well as the upward revision to GDP. Although Finance Minister Abe seems to have made a material impact on the Japanese economy the issue of the high levels of volatility in Japanese Government Bonds and the Japanese Yen.

CAD outperforms peers on positive jobs data

CAD outperformed all its peers during Friday’s session following the announcement of domestic job creation data for May which beat market expectations. Better than expected US Non-Farm Payrolls figure also added to the strength of the CAD. The GBP/ CAD pair was trading at 1.5851 at the end of Friday’s session.

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