Good morning and welcome to today’s foreign exchange market commentary on 28th of May.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- GBP will continue to strengthen say Analysts
- EUR volatility to continue over medium term
- USD rallies amidst high expectations for housing and Fed data
- Yen continues to weaken as Japanese stocks soar
- AUD settling lower and lower
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1696
GBP/USD – 1.5046
GBP/CHF – 1.4668
GBP/CAD – 1.5605
GBP/AUD – 1.5614
GBP/ZAR – 14.6661
GBP/JPY – 154.0372
GBP/HKD – 11.6815
GBP/NZD – 1.8620
GBP/SEK – 10.0270
Mid-market rates as of 2013-05-28 14:39 UTC
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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: USD Consumer Confidence (MAY)
China: No Data
Canada: No Data
Japan: JPY Large Retailers’ Sales (APR), JPY Retail Trade (YoY) (APR)
GBP will continue to strengthen say Analysts
Analysts from BoA and Merill Lynch noted that several pointers indicate that the higher than expected weakness in UK CPI inflation last month is not a trend that will continue in the medium term. Inflation of CPI is expected to advance at the rate of 3% over the next few months owing to the potential boost from the dip in GBP value at the beginning of 2013. The analysts also indicated that following BoE’s vote in May to put the quantitative easing programme on hold May, it is now a wait and watch period before considering whether this recent spate of low CPI data can suggest a weaker medium-term inflation outlook when compared to their CPI inflation projections for May.
EUR volatility to continue over medium term
An absence of significant data releases or EU meets has put EUR in a quiet spot as of now with expectations that volatility will resume for the EUR/USD in the days following up to the next ECB meeting in early June. EUR/USD currently lacks any certain direction and this reflects the risk averseness of investors. Market news however continues to be in favour of ECB implementing negative interest rates in the event that conditions in Eurozone dip further.
USD rallies amidst high expectations for housing and Fed data
The markets indicate an expectation that today’s Richmond Fed reports will demonstrate a flat trend along with improvements being expected in the Dallas Fed and Conference Board Consumer Confidence. Housing prices are also expected to post strong showing with a 1% gain in April compared to the previous month.
Yen continues to weaken as Japanese stocks soar
Japanese stock markets advanced for the second straight session following up from Monday’s spectacular rally despite a dip in the value of JGB 20-year government bonds. The Nikkei 225 is once again in the green at 14311.98 with an increase of 1.20%.
AUD settling lower and lower
AUD remains under pressure against the greenback at the 0.96-level following investor concerns over slowing economic growth in China. The Aussie seems to have settled for a consistent low position and this trend is likely to continue over the medium term.
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