Good morning and welcome to today’s foreign exchange market commentary on 2nd of July.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- GBP trading lower against greenback ahead of Carney’s first BoE meet
- EUR/USD dips amidst concerns on Portugal, Greece
- US Stocks open week on higher note
- USD/JPY rally to 100.00 is highlight of the day
- AUD looks to face increased pressure in near term
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1677
GBP/USD – 1.5152
GBP/CHF – 1.4415
GBP/CAD – 1.5984
GBP/AUD – 1.6573
GBP/ZAR – 15.1399
GBP/JPY – 152.6964
GBP/HKD – 11.7491
GBP/NZD – 1.9554
GBP/SEK – 10.1799
Mid-market rates as of 2013-07-02 23:56 UTC
Key releases in the next 24 hours that may affect currency date:
Australia: AUD Reserve Bank of Australia Rate Decision (JUL 2), AUD AiG Performance of Service Index (JUN)
Europe: EUR Euro-Zone Producer Price Index (YoY) (MAY)
United Kingdom: GBP Purchasing Manager Index Construction (JUN)
New Zealand: No Data
United States of America: USD Fed Holds Open Board Meeting on Final Rulemaking for Basel III, USD Factory Orders (MAY)
China: No Data
Canada: No Data
Japan: JPY Labor Cash Earnings (YoY) (MAY)
GBP trading lower against greenback ahead of Carney’s first BoE meet
Sterling was trading lower against the USD on Tuesday after declining by around 100 pips from 1.5235 during the European trading session. GBP/USD pair continues to be focused in the build up towards the BoE policy meeting on Thursday. The BoE will hold the first meeting with the new Governor Carney on Thursday. Overtones of domestic austerity, inflation and the Eurozone recession implies that the BoE has its work cut out for it to ensure the economic recovery in Britain remains on track. New governor Carney is expected to place greater emphasis on the BoE’s accommodative stance on QE policies.
EUR/USD dips amidst concerns on Portugal, Greece
Euro had a low trading session on Tuesday as the single currency came under pressure from the Portugal Foreign Minister’s resignation news. The EUR/USD declined by 0.70% on the day to reach 1.2960 before closing the day at 1.2970. On Tuesday, Paulo Portas resigned from his charge of Foreign Minister owing to a disagreement regarding Albuquerque’s appointment as new Finance Minister. In the second resignation in only two days, Portas’ decision has put his government in jeopardy as he is the party leader of the People’s Party, which is one of the parties that has formed the coalition government.
US Stocks wade through choppy waters ahead of US jobs data
The US stocks market ended the Tuesday’s session in the red as investors remained cautious ahead of the release of US jobs data and amidst concerns regarding the situation in Portugal, Greece and Egypt. In what was a choppy session, the Dow Jones declined by 42.55 points to finish the day at 14,932.41 while the S&P 500 eased 0.88 points or 0.05% to 1,614.08.
USD/JPY rally to 100.00 is highlight of the day
USD/JPY pair was the most popular pair on the exchange board on Tuesday with the pair rallying past the ¥100.00 level. The USD/JPY has not ventured beyond 100.00 in over three weeks and was last seen at this point on June 5. Trading on Tuesday was mostly bullish on this pair with very little pushback on the downside.
AUD looks to face increased pressure in near term
The greenback rallied across the board, led by a 0.77 per cent decline in the Australian dollar as tthe higher-yielding currency may face additional pressure over the near to medium-term as the Reserve Bank of Australia (RBA) keeps the door open to push the benchmark interest rate to a new low.
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