Good morning and welcome to today’s foreign exchange market commentary on 23rd of May.
Here are MyCurrencyTransfer.com’s top 5 currency highlights:
- GBP dips on disappointing April retail sales
- EUR advances on Rehn’s comments
- Fed to cut back bond purchases, USD soars
- Nikkei shoots up to 16000
- AUD slips further on weak China PMI
CURRENCY RATES OVERVIEW
GBP/EURO – 1.1714
GBP/USD – 1.5030
GBP/CHF – 1.4679
GBP/CAD – 1.5609
GBP/AUD – 1.5646
GBP/ZAR – 14.5321
GBP/JPY – 152.8219
GBP/HKD – 11.6680
GBP/NZD – 1.8757
GBP/SEK – 10.0251
Mid-market rates as of 2013-05-23 06:37 UTC
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Key releases in the next 24 hours that may affect currency date:
Australia: No Data
Europe: EUR German Purchasing Manager Index Manufacturing (MAY A), EUR German Purchasing Manager Index Services (MAY A), EUR Euro-Zone Purchasing Manager Index Manufacturing (MAY A), EUR Euro-Zone Purchasing Manager Index Services (MAY A), EUR Euro-Zone Purchasing Manager Index Composite (MAY A), EUR Euro-Zone Consumer Confidence (MAY A),
United Kingdom: GBP Gross Domestic Product (QoQ) (1Q P), GBP Gross Domestic Product (YoY) (1Q P), GBP Total Business Investment (YoY) (1Q P)
New Zealand: NZD Balance (YTD) (New Zealand dollars) (APR), NZD Trade Balance (New Zealand dollars) (APR)
United States of America: USD Initial Jobless Claims (MAY 18), USD Markit US PMI Preliminary (MAY), USD House Price Index (MoM) (MAR), USD New Home Sales (MoM) (APR)
China: No Data
Canada: No Data
Japan: No Data
GBP dips on disappointing April retail sales
GBP tumbled to new lows of 1.5073 against the greenback yesterday as U.K. Retail Sales dipped by 1.4% in April amid as opposed to the forecasted figure of an increase of 0.1%. However with a renewed mid-term policy outlook on moving away from its quantitative easing programme, the Bank of England may help the GBP its feet. At the same time, the BoE has acknowledged the fact of consistent volatility within the Eurozone may succeed in boosting the value of the GBP but it appears that though majority of the Board members will vote in favor of stalling further expansion of the balance sheet will as further monetary easing is not likely to make BoE’s exit strategy any easier.
EUR advances on Rehn’s comments
Euro advanced to a high of 1.2954 against the USD after European Union Economic and Monetary Affairs Commissioner Olli Rehn promised to do everything it takes to fight unemployment which is currently at a record high level in the Eurozone. However if quantitative easing policy is to remain as accommodative as Mr Rehn motions, it appears that the European Central Bank (ECB) will be pressurized to show its support towards the monetary union.
Fed to cut back bond purchases, USD soars
US stocks were advancing once again last night following Chairman Bernanke’s acknowledgement that the Fed would gradually reduce its bond buying activities over its next few meetings. The greenback advanced against all of its peers with indices appreciating all around. The Dow Jones was up by 0.57%, while the Nasdaq and the S&P500 advanced by 0.30% and 0.53%, respectively.
Nikkei shoots up to 16000
Japanese index Nikkei posted yet another record high last at 15903, adding up to a 5% boost this week alone. The index is now at its highest level since early Dec 2007. The index adds almost a 5% gain this week alone. This advance has materialized on the back of rise in sales volume of Japanese bonds as well as continued Yen weakness and the bullish wave that the USD is currently riding on.
AUD slips further on weak China PMI
Aussie continues to slip lower after weak economic data from China pushed down the currency further. China HSBC PMI print released at 1:45GMT came in at 49.6 as opposed to the expected levels of 50.5.
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