Global markets await Fed’s latest move on tapering

Global markets await Fed’s latest move on tapering

Sinduja Venkat

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

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

  • Sterling volatility due on Thursday
  • EUR/USD dips consistently on Friday
  • Global markets await Fed’s latest move on tapering
  • USD/JPY breaches 98.00 during American trading
  • AUD/USD under pressure once again from RBA rate cuts, disappointing data

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1578
GBP/USD – 1.5352
GBP/CHF – 1.4293
GBP/CAD – 1.5752
GBP/AUD – 1.6672
GBP/ZAR – 15.0337
GBP/JPY – 150.2159
GBP/HKD – 11.9096
GBP/NZD – 1.9137
GBP/SEK – 9.9410

Mid-market rates as 2013-07-29 16:00 UTC

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

Australia: No Data
Europe: No Data
United Kingdom: GBP Mortgage Approvals (JUN), GBP Net Consumer Credit (JUN)
New Zealand: No Data
United States of America: USD Pending Home Sales (YoY) (JUN)
China: No Data
Canada: No Data
Japan: JPY BoJ Governor Kuroda Speaks at Research Institute of Japan, JPY Household Spending (YoY) (JUN), JPY Jobless Rate (JUN), JPY Industrial Production (YoY) (JUN P)

Sterling volatility due on Thursday

The GBP struggled to assert itself against the other major global currencies during recent weeks in spite of encouraging UK Q2 GDP figures and better than anticipated advance indicators. Now that further QE measures appears off the menu for Britain’s economy, a slightly more positive ‘forward guidance’ statement from the Bank of England’s monetary policy committee on Thursday could see Sterling advancing once more.

EUR/USD dips consistently on Friday

The EUR/USD pair consistently drifted lower during Friday’s session reaching a low of 1.3252. EUR/USD should move Tuesday as key CPI data is due to be released. EUR/USD trading will be watchful of German consumer confidence, Spain’s GDP, Eurozone consumer confidence and Germany’s CPI data all before the US session starts Tuesday.

Global markets await Fed’s latest move on tapering

Nervous global markets waited for news from the US Federal Reserve and the new Labor Department unemployment data to be released on Friday as improved data from Europe boosted European equity markets and raised the euro against the USD while the dollar regained footing against the yen. Markets appear edgy about what Federal Reserve Chairman Ben Bernanke will announce regarding the possible tapering of the current stimulus. With unfavorable growth in GDP expected and with modest gains of about 185,000 new jobs expected, impetus for the Fed to alter policy significantly was felt to be lacking.

USD/JPY breaches 98.00 during American trading

USD/JPY pair recovered from daily lows and erased losses during the American session on Monday, as the USD strengthened across the board. USD/JPY climbed to above the 98.00 level and reached a high of 98.33 before finding sellers and pulling back slightly.

AUD/USD under pressure once again from RBA rate cuts, disappointing data

Following worse than expected Australian building permits data for 2013 and RBA Stevens comments suggesting the central bank might cut interest rates next week the Aussie has once again plummeted from above the 0.92 to a fresh 2-week low at 0.9063.

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