Good morning and welcome to today’s foreign exchange market commentary on 10th of July.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- GBP rises on FOMC minutes
- Portugal rejects early elections
- Bernanke says more expansive stimulus to continue
- USD/JPY plunges on Bernanke comments
- Australia employment for June expected to remain flat
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1567
GBP/USD – 1.5021
GBP/CHF – 1.4378
GBP/CAD – 1.5689
GBP/AUD – 1.6333
GBP/ZAR – 14.9582
GBP/JPY – 149.9119
GBP/HKD – 11.6522
GBP/NZD – 1.9086
GBP/SEK – 10.0653
Mid-market rates as of 2013-07-10 21:35 UTC
Key releases in the next 24 hours that may affect currency date:
Australia: AUD Westpac Consumer Confidence (JUL)
Europe: EUR German Consumer Price Index (MoM) (JUN F), EUR German Consumer Price Index (YoY) (JUN F), EUR German Consumer Price Index – EU Harmonised (MoM) (JUN F), EUR German Consumer Price Index – EU Harmonised (YoY) (JUN F)
United Kingdom: No Data
New Zealand: NZD Business NZ Performance of Manufacturing Index (JUN)
United States of America: USD Fed Releases Minutes from Jun 18-19 FOMC Meeting, USD Fed’s Bernanke Speaks on Economic Policy in Boston
China: CNY Exports (YoY)% (JUN), CNY Trade Balance (USD) (JUN), CNY New Yuan Loans (JUN)
Canada: No Data
Japan: JPY Japan Buying Foreign Bonds (Yen) (JUL 5), JPY Japan Buying Foreign Stocks (Yen) (JUL 5), JPY Machine Orders (YoY) (MAY)
GBP rises on FOMC minutes
GBP appreciated against the Greenback on Wednesday following the FOMC minutes release amidst doubts that the Fed will begin tapering this September. The GBP/USD jumped by 70 pips in minutes to the 1.4990 region. Low trading volumes along with doubts that the QE prgramme in the US will be ending by the end of the year has continued to fuel the pair. However, the GBP/USD was unable to hold gains and it retreated fast to previous levels. Now the cable is trading at 1.4930.
Portugal rejects early elections
The single currency jumped to fresh weekly highs of 1.2950 against the greenback after the FOMC minutes cast a mantle of doubt about the Fed tapering QE in September. In other news, Portugal politicians have rejected the idea of calling for early elections to improve political stability and consider possibilities for a new bailout package.
Bernanke says more expansive stimulus to continue
The Greenback traded lower on Wednesday as market waited for QE clues in the build-up towards the release of the FOMC minutes however the Fed decided to convey its pessimistic side as was evident from Ben Bernanke’s speech after the release of the recent FOMC Meet’s minutes. He further conveyed that inflation and jobs data that has come out of the US Economy recently, signaled that more economic stimulus would be needed. Bernanke has linked the QE and interest rates to the 6.5% unemployment target and indicated that “some time after” this figure was achieved there will be a rate hike. The USD has collapsed against all its peer currencies ever since.
USD/JPY plunges on Bernanke comments
The USD/JPY pair plunged on Thursday morning during Asian trading, sparked by dovishness from Bernanke. USD/JPY is now operating at a loss of -1.59%, having dipped to low of 99.52.
Australia employment for June expected to remain flat
After adding 1.1K jobs in May, Australia employment is not expected to improve in June. As the Reserve Bank of Australia (RBA) remains open to pushing down the benchmark interest rate to a fresh record-low, the slowing recovery in the Australian economy may prompt the central bank to further embark on its easing cycle. There is always the risk that the AUD will continue to face pressure over the near to medium-term as China – Australia’s largest trading partner – remains at risk.
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