Good morning and welcome to today’s foreign exchange market commentary on 14th of June.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- GBP fails to impress despite strong showing from domestic housing
- EUR dips for second session, LTRO rate decision will determine direction
- USD trading lower on new survey results
- Abe’s cabinet approves new reforms
- AUD optimistic on positive domestic jobs and defensive USD
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1757
GBP/USD – 1.5685
GBP/CHF – 1.4470
GBP/CAD – 1.5958
GBP/AUD – 1.6342
GBP/ZAR – 15.4837
GBP/JPY – 148.6388
GBP/HKD – 12.1777
GBP/NZD – 1.9510
GBP/SEK – 10.1816
Mid-market rates as of 2013-06-14 18:01 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: NZD Business NZ Performance of Manufacturing Index (MAY)
United States of America: USD Business Inventories (APR)
China: No Data
Canada: No Data
Japan: JPY Bank of Japan May 21-22 meeting minutes
GBP fails to impress despite strong showing from domestic housing
Earlier today a survey of the British housing sector revealed that the average sale price of properties in England and Wales reached £233,061 during April making this the highest recorded reading. This indicates that Britain’s housing market has potentially recovered from the credit crisis of 2007. The recent improvement in the UK housing sector has been attributed to an increase in the availability of mortgage financing in the Britain during recent months due to the Bank of England’s Funding For Lending scheme. Despite this optimistic news the GBP failed to defend itself against its peers with GBP/USD dipping by 0.5 per cent at 1.5638
EUR dips for second session, LTRO rate decision will determine direction
EUR/USD was subjected to low pressure and dipped to the 1.3310 region from 1.3380 at during the Asian session. The EUR/USD scaled back for the second consecutive session on Friday. The last few weeks saw the pair well supported however todays LTRO repayment announcement according to market analysts could be decisive for the euro’s direction today.
USD trading lower on new survey results
The Dow Jones-FXCM U.S. Dollar Index was trading 0.01 per cent points lower since the session open in New York following the release of results from the U. of Michigan Confidence survey which had narrowed down considerably to 82.7 from 84.5 in May. It is expected that the greenback may continue to dip lower in during the week as it struggles to maintain the downward trend from earlier this month.
Abe’s cabinet approves new reforms
PM Abe’s Cabinet has approved his economic reforms that aim at making Japanese companies more competitive. This move comes after a massive economic stimulus was enacted by Abe’s government to overcome and fast forward two decades worth of sluggish growth. Abe’s economic reforms include tax cuts for companies that restructure or that invest in factories or equipment. Other priorities include subsidies to encourage more hiring and the establishment of special economic zones to promote deregulation and globalization of businesses, services and education.
AUD optimistic on positive domestic jobs and defensive USD
Broader USD weakness along with US 30 year bond yields posting a fresh one year high at around 3.43% as well as stronger than expected Australian jobs data yesterday has helped prop up the Aussie higher.
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