Foreign Currency News Updates

Euro news:
For a moment there the euro zone seemed to have things under control as reassuring comment after reassuring comment came from various EU ministers. As such the euro climbed into the $1.23 levels and remained there for the last two weeks, occasionally dipping into the $1.22 area. The current price remains above $1.23 but other markets show that investor confidence is diminishing fast for the euro zone.

Credit default swaps, financial instruments used to insure against a creditor defaulting, are at their highest levels ever for Greek debt. This basically means the market is hugely convinced Greece will default. Whether or not Greece will default has been discussed for some time now but the fact that the discussion will not die suggests it remains on option.

News just in reveals the Romania top court has ruled against some austerity measures, austerity measures being key to reducing debt levels. The significance of this has yet to be determined by the euro has just started to come under pressure. On the data front better news for the euro zone comes in the form of German import prices, the market was looking for 0.1% up, 0.6% up was the figure. The market remains bearish on the euro for the time being.

US Dollar news:
Heading into the weekend traders and investors are mixed as to what the economic future holds for the dollar. On the back of the comments by the Fed, some are dollar positive on worries of global growth whereas some are dollar negative because the Fed plans to keep interest rates low for the mid-term. Over the week Sterling has climbed from $1.4790 to $1.5015, the current price of $1.4930 50pips shy of where we were at close yesterday.

The euro has also held firm against the dollar, maintaining the $1.23 levels. The current price of $1.2337 is in fact just 3 pips higher then where it was at 16:30 Monday 21st. Overall the pair showing a pretty much unchanged trading pattern for the week.

The Canadian dollar is also ticking lower versus the U.S dollar, the current levels have dipped into the $0.9580 region as investors move away from commodity lead currencies for the time being. Yesterday’s economic growth figures were of little benefit, Core Durable Goods Orders were down by 0.2% and unemployment claims were marginally lower at 457,0001 claims. Today is a quiet day and coupled with it being the end of the week we may see USD trading within tight and expected ranges for today.

Pound news:
The budget was the major driving force for Sterling this week and a look back over the last five days shows that against the dollar and euro Sterling has moved ahead to several week highs. Against the dollar $1.50 was breached, a level that had not been visited since 11th May. Subsequently the Pound has not had the momentum to push higher and finds itself hovering around the $1.4930 level as we start Friday’s trading session.

Against the euro the Pound has also performed well as the last two days have showed GBP/EUR trading above €1.21. This level seems difficult for Sterling to hold as the current price is €1.2095 to buy on the market, prior to the budget Sterling had not pushed through €1.21 for two weeks. Market moving comments aside, we may see Sterling bounce around the €1.21 level for today. The percentage change on the day shows that trading so far this Friday has been on the thin side, Sterling a fraction lower by -0.05%. Sterling continues to do well against the Australian dollar as it tests the AUD$ 1.73 area. The budget was well received but for Sterling to make any further gains in the current economic climate the market is going to want to see evidence that Mr Osborne was not all mouth.

Quote of the Day
“I am not interested in money. I just want to be wonderful.” – Marilyn Monroe