Greenback rally keeps Sterling in check

Greenback rally keeps Sterling in check

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 29th of May. 

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

  • Bullish Greenback depresses GBP resilience
  • EUR up for fluctuation from Germany CPI, unemployment print
  • USD likely to be weighed down by Fed comments
  • Japanese retail sales data boosts Nikkei
  • Bank of Canada rate cut decision expected to check CAD appreciation

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1677
GBP/USD – 1.5054
GBP/CHF – 1.4619
GBP/CAD – 1.5642
GBP/AUD – 1.5727
GBP/ZAR – 14.7964
GBP/JPY – 153.1520
GBP/HKD – 11.6879
GBP/NZD – 1.8636
GBP/SEK – 10.0510

Mid-market rates as of 2013-05-29 09:56 UTC

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

Australia: No Data
Europe: EUR German Unemployment Change (MAY), EUR EC OECD May Economic Outlook (MAY), EUR EU Makes Annual Economic Policy Recommendations, EUR German Consumer Price Index – EU Harmonised (YoY) (MAY P), EUR German Consumer Price Index (YoY) (MAY P), EUR German Consumer Price Index – EU Harmonised (MoM) (MAY P), EUR German Consumer Price Index (MoM) (MAY P)
United Kingdom:  No Data
New Zealand: No Data
United States of America: No Data
China: No Data
Canada: CAD Bank of Canada Rate Decision (MAY 29)
Japan: JPY Japan Buying Foreign Bonds (Yen) (MAY 24), JPY Japan Buying Foreign Stocks (Yen) (MAY 24)

Bullish Greenback depresses GBP resilience

GBP tumbled to 2-month lows yesterday and was until recently trading at 1.5062.  As UK markets return from a bank   holiday weekend there have been no economic reports or data inflows as yet.  However this weakness in the Sterling against the greenback corresponds to optimistic economic housing data coming from the US as housing property values increased by 10.9% while US consumer confidence index upped to 6.2 making this figure the highest it has been since February 2008.  UK nationwide housing property prices are scheduled to be released tomorrow while Friday will see more mortgage approvals and consumer confidence index figures all of which are likely to affect the movement of the GBP/USD pair.

EUR up for fluctuation from Germany CPI, unemployment print

Euro markets face a busy schedule in terms of economic data during  today’s trading session with preliminary set of May’s German Unemployment and CPI data being released today. Data is expected to indicate a rise in year-on-year inflation rate by 1.3 percent, making this the first rise in five months. Later on in the week Eurozone price growth data is expected to be released price growth which could help to stabilize the Euro.

USD likely to be weighed down by Fed comments

During the US session of trading today a speech from the Federal Reserve’s Eric Rosengren, has been scheduled to provide an outlook for the US economy and take questions. Mr. Rosengren who is a this year a key member of the FOMC committee which sets rates will be commenting on the Fed’s quantitative easing policy and his comments are likely to throw light on the likelihood and schedule of scaling back of the Fed’s asset purchases this year.

Japanese retail sales data boosts Nikkei

Yen began today’s Asian session weak but regained its strength offered and hovered at 102.51 against the greenback. Nikkei index advanced by 0.84%, as Japanese retail sales indicated an overall month on month increase even though it is still in the red on a yearly basis.

Bank of Canada rate cut decision expected to check CAD appreciation

Bank of Canada (BoC) is expected to retain its benchmark interest rate today at 1.00% in May. This is expected to lower CAD sales especially if should Governor Mark Carney decides to adopt a less aggressive monetary policy. Canada faces a slow growth outlook and bearing this in mind it is expected by investors that the BoC might not be open to a rate increase.

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