by Damian -
Overnight Currency News
The dollar has weakened off this morning due to US data to be released this afternoon ‘Retail sales and Initial jobless claims’. Stanley Fischer, nominee to be Federal Reserve Chair Janet Yellen’s deputy, said the U.S. economy still needs stimulus to combat unemployment ahead of a report projected to show jobless claims ticked up last week.
There is nothing on the UK calendar today, so with little potential for positive UK news its likely GBP will remain vulnerable to euro/usd. This week has been very quiet for the pound but we do still expect positive UK news but may have to wait until next week for the labour market data and MPC minutes.
Forex traders continue to buy euros as it continues to be supported by ECB comments that the economy continues to pick up. The Great British Pound took a battering yesterday on a day where UK data was somewhat lacking. Draghi speaks today and once again the markets will watch closely to see whether he takes a similar line to his comments at last weeks post policy meeting press conference. Been a quiet day for the UK obviously there is a great chance we could see the euro exchange rate strengthen again!
Good news for the Australian economy as it gained against all major currencies after data showed employers added more than three times the jobs that economists had estimated. The Aussie dollar gained 250 points in 24hrs against the weaker pound.