Sterling dips further against greenback, USD soars against all peers

Sterling dips further against greenback, USD soars against all peers

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 21st of June. 

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

  • GBP/USD dips further to end week on a quiet note
  • EUR/USD to follow a bearish trend over coming week
  • USD is Safe Haven as FOMC comments trigger emerging market currency sell-off
  • BoJ’s Kuroda instills faith on Japan and overseas economic stability
  • CAD expected to be boosted by domestic inflation rate

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1710
GBP/USD – 1.5488
GBP/CHF – 1.4378
GBP/CAD – 1.6081
GBP/AUD – 1.6781
GBP/ZAR – 15.8242
GBP/JPY – 151.7189
GBP/HKD – 12.0121
GBP/NZD – 1.9916
GBP/SEK – 10.1898

Mid-market rates as of 2013-06-21 07:59 UTC

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

Australia: No Data
Europe: EUR EU Finance Ministers Meet in Luxembourg, CHF KOF Institute June Economic Forecast
United Kingdom:  GBP Public Finances (PSNCR) (Pounds) (MAY)
New Zealand: NZD ANZ Consumer Confidence Index (JUN)
United States of America: USD Initial Jobless Claims (JUN 15), USD Markit US PMI Preliminary (JUN), USD Existing Home Sales (MoM) (MAY), USD Leading Indicators (MAY), USD Philadelphia Fed. (JUN)
China: No Data
Canada: CAD Bank Canada Consumer Price Index Core (YoY) (MAY), CAD Consumer Price Index (YoY) (MAY), CAD Bank Canada Consumer Price Index Core (MoM) (MAY), CAD Consumer Price Index (MoM) (MAY), CAD Retail Sales (MoM) (APR)
Japan: JPY BOJ Governor Kuroda Speaks at NASB

GBP/USD dips further to end week on a quiet note

GBP/USD has moved within a range of 1.5668 and 1.5414 since the release of the FOMC comments on Thursday. Sterling is trading lower today in the European and London sessions open to face a relatively quiet day devoid of any major data releases domestically as well as amongst its peer currencies. Key data release this morning includes UK Public Sector Net Borrowing for May £13.750B as compared to previous £8.035B.

EUR/USD to follow a bearish trend over coming week

EUR/USD will follow a bearish trend over coming weeks according to analysts as the momentum right now is in favour of the dollar after the quantitative easing speculation was fueled further by Fed’s Bernanke on Wednesday. Analysts continue to feel that primary focus of market participants will be on data from the US that will serve to give further shape to expectations with regards to timing of tapering.

USD is Safe Haven as FOMC comments trigger emerging market currency sell-off

USD which is being seen as a safe haven at the moment was in heavy demand during Friday’s  trading session in Asia following the announcement that the Federal Reserve Bank is planning to halt to its ultra loose policy by scaling back on its asset purchase program. The announcement caused a  major selloff of emerging market currencies.

BoJ’s Kuroda instills faith on Japan and overseas economic stability

BoJ Governor Haruhiko Kuroda indicated today that the Japanese economy is improving and that global markets too should consequently stabilize over time. Japan’s economy according to him is likely to begin moderate recovery as global growth improves and domestic demand returns to previous levels due to monetary easing and various stimulus measures.

CAD expected to be boosted by domestic inflation rate

Canadian inflation data which is due to be released today is expected to increase to an annualized 0.9% in May, and this expected to boost the CAD if the data release manages to increase speculations for increase in borrowing costs. However, Bank of Canada (BoC) Governor Stephen Poloz might go for a neutral wait and watch approach for the second-half of the year amid the current domestic economic slowdown.

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