by Damian -
The US Dollar exchange rates dropped to a three week low against multiple currencies as investors pushed back bets for when the Fed Reserve will increase interest rates.
Yesterdays minutes highlighted growing concerns among policy makers who say further gains in the dollar could hurt exports and damp inflation, which has undershot the Fed’s goal for more than two years.
Australia’s currency rose for a fourth day as traders treated data showing employers unexpectedly cut payrolls last month with caution following changes to labor-market figures by the statistics bureau yesterday.
In the UK attention will shift to this afternoons Bank of England policy meeting. Over the past few months the MPC have been split on the near term need for tighter monetary policy. Markets do not expect any change to the headline interest rate currently at 0.5% percent.
Elsewhere, in a relatively light data calendar, speeches from various fed officials may attract some interest some interest. ECB president Mario Draghi will be speaking on Europe earlier this afternoon.
MORNING MARKET RATES:
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P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG GBP AND LOOK AT SECURING EUROS ON A FORWARD CONTRACT FOR UP TO 2 YEARS IN ADVANCE. WE ONLY REQUIRE A 3% GBP DEPOSIT TO SECURE A RATE GIVING YOU PEACE OF MIND AGAINST RATE FLUCTUATIONS.