Sterling on the defensive as US reports stable consumer and housing confidence data

Sterling on the defensive as US reports stable consumer and housing confidence data

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 25th of June. 

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

  • Sterling on the defensive as US reports stable consumer and housing confidence data
  • Optimistic German confidence survey results fail to boost EUR/USD
  • USD continues to be safe haven as further positive economic data indicates
  • Yen/USD picks up steam on Tokyo open
  • AUD/USD advancing as PBoC buckles under pressure of interbank rates

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1787
GBP/USD – 1.5419
GBP/CHF – 1.4467
GBP/CAD – 1.6224
GBP/AUD – 1.6686
GBP/ZAR – 15.5777
GBP/JPY – 150.7975
GBP/HKD – 11.9621
GBP/NZD – 1.9950
GBP/SEK – 10.3785

Mid-market rates as of 2013-06-25 15:30 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:  GBP BBA Loans for House Purchase (MAY), GBP BoE King Testifies to Lawmakers in Final Appearence
New Zealand: NZD Credit Card Spending s.a. (MoM) (MAY), NZD Credit Card Spending (YoY) (MAY)
United States of America: USD Durable Goods Orders (MAY), USD Durables Ex Transportation (MAY), USD S&P/Case-Shiller Composite-20 (YoY) (APR), USD Consumer Confidence (JUN), USD New Home Sales (MoM) (MAY)
China: No Data
Canada: No Data
Japan: No Data

Sterling on the defensive as US reports stable consumer and housing confidence data

GBP/USD pair declined by 50 pips from 1.5450 down to the1.5400 area following the optimistic housing and consumer confidence data released in the United States. Currently the pair is trading around 1.5415 declining by 0.12%. Short term market perspective is  bearish for the pair as of the moment.

Optimistic German confidence survey results fail to boost EUR/USD

German Consumer Confidence Survey increased to 6.8 in July from 6.5 in the previous month. The EUR/USD was last seen trading at 1.3066 easing from session highs at 1.3087 owing to USD strength and the overall risk averseness observed amongst investors in the region. The pair is currently seen to have dipped by 0.43% for this week ahead of key EMU meetings taking place in Brussels.

USD continues to be safe haven as further positive economic data indicates

The US Dollar Index advanced slightly during the Asian trading session on Wednesday buoyed partially by strong economic data coming in from the US on Tuesday. Despite headlines dominated by Fed’s decision on QE tapering the overall US picture has reflected recovery and resilience over the past several months. Presently the USD Dollar Index has settled for the 82.85 level.

Yen/USD picks up steam on Tokyo open

The Asian pre-trading session began on a slower note for the Yen/USD pair against most of its peers however the session saw things turning around as soon as Tokyo trading opened and the Yen began to pick up steam following the rise of risk aversion among investors pushing USD/JPY pair further down to 97.60 from 98.25.

AUD/USD advancing as PBoC buckles under pressure of interbank rates

AUD/USD has been advancing on news that central bank of China is buckling under the pressure imposed by the interbank rates markets, with China rate swaps 1-year declining by over 35 bp today at 3.71% from 5% at the close of last week.

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