Good morning and welcome to today’s foreign exchange market commentary on 3rd of June.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- GBP advances on strong PMI survey results
- Eurozone will recover in 2013, claims Draghi
- To implement QE or not to implement QE, that is the question
- Wave of uncertainty from US, China keeps Japanese stocks in check
- RBA decision tomorrow expected to redeem AUD status
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1721
GBP/USD – 1.5256
GBP/CHF – 1.4597
GBP/CAD – 1.5790
GBP/AUD – 1.5801
GBP/ZAR – 15.2201
GBP/JPY – 153.0342
GBP/HKD – 11.8443
GBP/NZD – 1.9093
GBP/SEK – 10.0482
Mid-market rates as of 2013-06-03 11:15 UTC
Key releases in the next 24 hours that may affect currency date:
Australia: No Data
Europe: No Data
United Kingdom: No Data
New Zealand: No Data
United States of America: USD Construction Spending (MoM) (APR), USD ISM Manufacturing (MAY), USD ISM Prices Paid (MAY)
China: No Data
Canada: No Data
Japan: No Data
GBP advances on strong PMI survey results
According to a recent survey, the UK’s manufacturing sector has posted growth at its strongest pace yet in over a year in May. The Markit/CIPS Purchasing Managers’ Index shot up to 51.3 in May from 50.2 on a month-on-month basis . A figure above 50 indicates expansion. The Markit survey also indicated that production and new orders had picked up as domestic market was driving demand for new business. The similar survey for the Eurozone indicated a dip in the region’s manufacturing sector had been erased in May as new orders picked up. GBP advanced against the dollar following the release of UK’s PMI survey, increasing by 0.5% to $1.5289.
Eurozone will recover in 2013, claims Draghi
ECB head Mario Draghi made an appearance at the International Monetary Conference in Shanghai on Sunday where he has indicated that he expected the Eurozone to recover gradually in the second half of 2013, as a result of the introduction of the OMT program in 2012 as well as arise in demand for Eurozone exports. However the situation was still uncertain, despite the promising signs of stability being restored within the region.
To implement QE or not to implement QE, that is the question.
It has now become unofficial that the US economic stimulus programme is definitely a no-go how market participants continue to be hopeful that the process will take longer than end of 2013 as has been indicated by the Fed. Fed’s Large Scale Asset Programme is expected to be rolled back by September however an it is widely believed that an increased interest rate is not on the cards until end of 2015.
Wave of uncertainty from US, China keeps Japanese stocks in check
Equities in Japan dipped today following weak manufacturing data from China and fresh fears over the US Fed’s decision to scale back its economic stimulus programme. China and US are Japan’s biggest export markets and indicators have not been strong from these surces. To add to this investors do not appear confident of BoJ’s ppoliy measuresas austereas they may seem. As a result Nikkei 225 index dropped by 3.7% at 13,261.82 on Monday.
RBA decision tomorrow expected to redeem AUD status
Reserve Bank of Australia (RBA) is being expected by market analysts to hold on to its cash target rate at 2.75% tomorrow. A rate cut of 25 bps by RBA was announced in May and this led to the ensuing drop in value for the AUD against the greenback. Going forward an unchanged rate, as well as good Chinese data is expected to redeem the AUD’s status amongst its peers.
Going on holiday? Compare travel money deals with our sister site mytravelmoney.co.uk