|
The Pound extended its sharp fall last week in the wake of data showing UK contracted in the third quarter, dropping below a key technical support level against the US dollar. However we could see a positive stance and the pound regain against the majors over the coming weeks. At the moment at least all is looking good for a retracement above 1.10 on the Euro and 1.65 on the dollar
The dollar recovered from a 14-month low against the euro after equity markets encouraged investors to take some interest in the dollar. Even the pound seems to be getting the upper hand as investors are increasingly selling off low-yielding currency such as the dollar to buy riskier currencies to gain higher returns.
The Euro still the currency to watch and the recent gains against the pound and the US dollar may prove to be short term if we have any negative data from the euro zone.
The Australian dollar closed lower against the majors as investors came away from the currency amid falling commodity prices. The Australian dollar is a risk-sensitive or growth currency and it rises or sinks on the back of commodity prices. This might give a bit of hope for Dollar buyers over the next few months if the US Dollar starts to climb and China releases some negative data.
Interbank Rates at 8.30 am UK
GBP-EURO 1.098
GBP-USD 1.635
GBP-AUD 1.782
Data out today
UK CBI Distributive Trades
US Consumer confidence
JP Retail sales
Phil Bennetts
Foreign Exchange Explained
|
tweet this!