Sterling outlook positive prior to Carney’s arrival in two weeks

Sterling outlook positive prior to Carney’s arrival in two weeks

 Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 17th of June. 

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

  • GBP cruising on, outlook remains positive over coming weeks
  • Discouraging trade surplus pushes EUR downwards
  • US stocks buoyed by NY State Manufacturing Index for June
  • Yen back at 95.00 against USD
  • CAD stumbles against greenback on new investment data

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1793
GBP/USD – 1.5745
GBP/CHF – 1.4536
GBP/CAD – 1.6005
GBP/AUD – 1.6416
GBP/ZAR – 15.5326
GBP/JPY – 149.1505
GBP/HKD – 12.2179
GBP/NZD – 1.9536
GBP/SEK – 10.1630

Mid-market rates as of 2013-06-17 13:54 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: G8 Summit, USD NAHB Housing Market Index (JUN)
China: No Data
Canada: CAD Existing Home Sales (MoM) (MAY)
Japan: No Data

GBP cruising on, outlook remains positive over coming weeks

GBP is currently trading at a four monthly high as noted by market analysts who have also reported that inflation figures to be released this week as well as retail sales are both bring in optimistic news as both are expected to rise and boost the GBP further.

Other data that could impact the GBP movement in the coming week include CPI data which has been lower since late 2011 and is projected to be within the 2.2%-2.7% range. Retail sales have also declined in the last few months. last four. Minutes from the MPC meeting conducted earlier on this month will also be released at this time but analysts note that since the Bank of England will be taken over by a new governor in a couple of weeks, the minutes might not have as much market impact.

Discouraging trade surplus pushes EUR downwards

EUR/USD retreated today from a high of 1.3356 as the Eurozone’s trade surplus fell to 16.1 Billion from 18.1 Billion in March indicating that economic slowdown in growth is still a real concern that has emerged amid the recent signals of recovery projected by the region.

European Central Bank (ECB) is  now under greater pressure to carry out further non-conservative measures standard measures and the possibility of more central bank officials supporting ECB Head Draghi’s move to introduce a negative interest rate policy (NIRP) in the region is increasingly realistic.

US stocks buoyed by NY State Manufacturing Index for June

US stocks rallied on Monday after the largest economy in the world reported optimistic economic data. Earlier today the NY Empire State Manufacturing Index (June) was reported at 7.84, vs. the projected 0.0.  NASDAQ rallied by 0.85% at 3452.90 while the S&P 500 rose by 0.83% at 1639.76. The Dow Jones also posted gains of 0.53% at 15149.68.

Yen back at 95.00 against USD

Yen was trading against the USD back at 95.00 today as the Japanese currency appears to have been sold off following a rise in Japanese stocks in today’s session. The Nikkei equities index edged 2.73% higher. PM Abe’s ally Mr Yamaguchi has indicated today that the BoJ must be prepared to carry out further steps to implement quantitative easing.

CAD stumbles against greenback on new investment data

The USD/CAD pair remained in the red on Monday fluctuating within the region of 1.0146 – 1.0177. Economic data release today indicated that the figure for Canadian portfolio investment in foreign securities for April has come in at $2.81B, compared with the previous figure of $3.81B while the Foreign portfolio investment in Canadian securities was reported to be in the region of $14.91B in April beating projections of $4.59B.

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