Good morning and welcome to today’s foreign exchange market commentary on 14th of May.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- GBP trading evenly, BoE QE policy in focus once again
- Eurozone meeting debrief: Cyprus gets loans, Slovenia cautioned
- Wall Street posts mixed sentiments on Fed’s termination of QE
- Nikkei head south
- Aussie Fed Budget being released today
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1771
GBP/USD – 1.5318
GBP/CHF – 1.4593
GBP/CAD – 1.5473
GBP/AUD – 1.5339
GBP/ZAR – 14.0263
GBP/JPY – 155.4084
GBP/HKD – 11.8895
GBP/NZD – 1.8482
GBP/SEK – 10.0922
Mid-market rates as of 2013-05-14 07:13 UTC
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Key releases in the next 24 hours that may affect currency date:
Australia: Australian Federal Budget
Europe: EUR Italian General Government Debt (MAR), EUR German ZEW Survey (Economic Sentiment) (MAY), EUR Euro-Zone Industrial Production w.d.a. (YoY) (MAR), EUR Euro-Zone ZEW Survey (Economic Sentiment) (MAY), EUR German ZEW Survey (Current Situation) (MAY)
United Kingdom: No Data
New Zealand: No Data
United States of America: USD New York Fed Releases Quarterly Household Debt Report
China: No Data
Canada: No Data
Japan: JPY Tertiary Industry Index (MoM) (MAR)
GBP trading evenly, BoE QE policy in focus once again
Investors continue to hope for the best as expectations for BoE policy easing are once again back in focus. BoE has made significant asset purchases in recent weeks. Even after the new governor Carney takes over on 1st July, expectations are not aggressive. With very little in the way of significant UK data releases until Wednesday jobs data, the GBP has traded evenly today so far. Last week’s suggestion that a revised set of construction industry data from the second and third quarters of last year may mean that the British economy actually avoided entering a double dip recession could strengthen the GBP.
Eurozone meeting debrief: Cyprus gets loans, Slovenia cautioned
Weak economic development has now started a heated debate about doing away with the austerity measures in favor of implementing other strategies meant to stimulate growth with the ECB supporting this stance. The outcome of yesterday’s Brussels meeting of Eurozone finance ministers saw the first tranche of loans being released to Cyprus and urged Slovenia to adopt quick and effective measures to avoid needing any emergency loans.
Wall Street posts mixed sentiments on Fed’s termination of QE
US stocks closed yesterday’s session with mixed emotions as investors became concerned over talks about the Fed terminating its quantitative easing programme by the end of 2013. Dow Jones dropped by 26.81 points or 0.18% to 15,091.68, the last time this happened was a couple of weeks ago.
Nikkei heads south
Asian stocks dropped towards the end of the session following the recurring trend of decline over the last two days. Even the Japanese markets which seemed all hunky-dory following the fall in Yen value against the USD, took a modest hit. The Nikkei 225 was trading in negative territory earlier on, operating at 14758.42, falling by 23.79 points.
Aussie Fed Budget being released today
Australia government will release its latest budget today amidst an uncertain time of the year when questions have been rampant about its handling of the economy ahead of elections this year. Treasurer Swan is expected to outline his spending plans while Australia gets ready to post its second budget deficit over a span of three years. The economy has taken a hit over the last few months owing to weakening in global demand for commodities which has adversely affected the country’s economic growth prospects and tax income.
