Good morning and welcome to today’s foreign exchange market commentary on 24th of June.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- BoE signs 3-year deal with China to boost Yuan trade
- EUR begins week on optimistic note with positive German data
- US stocks open in the red amidst concerns on China, bullish USD
- Inflation fears become true in Japan
- AUD weaker on FOMC comments
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1758
GBP/USD – 1.5392
GBP/CHF – 1.4378
GBP/CAD – 1.6676
GBP/AUD – 1.6676
GBP/ZAR – 15.5810
GBP/JPY – 149.8893
GBP/HKD – 11.9417
GBP/NZD – 1.9874
GBP/SEK – 10.4269
Mid-market rates as of 2013-06-24 14:11 UTC
Key releases in the next 24 hours that may affect currency date:
Australia: No Data
Europe: EUR German IFO – Business Climate (JUN), EUR German IFO – Current Assessment (JUN), EUR German IFO – Expectations (JUN)
United Kingdom: No Data
New Zealand: NZD Credit Card Spending s.a. (MoM) (MAY), NZD Credit Card Spending (YoY) (MAY)
United States of America: No Data
China: No Data
Canada: No Data
Japan: No Data
BoE signs 3-year deal with China to boost Yuan trade
GBP/USD pair was trading lower at1.5359 this morning at the beginning of the European trading session and has gapped lower on the charts following a USD rally wherein US bond yields are beginning to look more attractive to investors following last week’s FOMC announcements indicating a bullish trend in the US markets. Indications were also given for an increase in interest rates in the US.
In other news the Bank of England headed by new BoE governor, Mervyn King and his Chinese counterpart have signed a three year deal that is expected to boost trade between the UK and China in the Yuan. The two central banks have signed a three-year currency swap worth £21bn as the UK looks to capability to facilitate renminbi liquidity to UK institutions and position itself as a center for the Yuan.
EUR begins week on optimistic note with positive German data
Federal Reserve’s statements following last week’s FOMC meet regarding scaling back of Quantitative Easing continues to remain the dominant flavor in the markets on Monday. The German economy is back in focus today. Over recent months the best performing Euro area economy hasn’t been able to keep up with expectation. Today’s data release has improved investors’ sentiment and is expected to provide a better indication of Germany’s growth scenario in Q2.
US stocks open in the red amidst concerns on China, bullish USD
US stock markets once again opened in the red over fresh worries with regards to China and amidst the bullish trend posted by the USD. NASDAQ declined by 1.34% at 3311.07 while the S&P 500 at 1569.32 dipped by 1.45%. The Dow Jones also opened at 14670.62 declining by 0.87%.
Inflation fears become true in Japan
Tokyo Inflation data came in positive during May, whereas nationwide CPI which will be declared on Friday is also expected to follow a similar trend. The weakness observed in the Yen is being pointed to as the reason for this. FX markets are expected to take this appearance of inflation as a signal to be confident of Bank of Japan’s policy agenda which will further add to selling pressure on the yen.
AUD weaker on FOMC comments
The AUD/USD pair was printing further losses during the European trading session on Monday within the range of 0.9147 and 0.9200 posting a loss of nearly 400 pips ever since the release of FOMC statements last week indicating that interest rates in the US may need to rise for the pair to see better days ahead.
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