by Damian -
The US Dollar is still the favourite of the day and tonight Yellen’s speech in Jackson Hole should do little to suggest this wont continue at least in the short term. There is very little news today in the way of economic releases so we expect a very quiet day especially in the Europe session in light of the bank holiday on Monday in the UK.
The Pound sucks! Every time it looks like we are going to breach the 1.2600 level and target 1.3000 something “disappoints”. Yesterday it was the UK Retail sales that were mixed to say the least. Have we as the UK public decided we don’t need to buy stuff we don’t really need or want – surely not! But this is what the report suggested and as a result it will limit the Bank of England’s option to hike rates in the short term. Maybe the Bank Holiday sales will pry open our wallets – come on England do it for the Pound!
Why do Foreign Exchange Traders continue to Buy Euros. Super Mario should be named Merlin for his ability to put a smoke and mirrors in front of the Euro Zones problems. (if you haven’t guessed I’m not a fan of the Euro Zone – great in theory – terrible in reality.) Mario is speaking at Jackson Hole this weekend and I imagine Forex traders will be buying Euros in their droves on the back of it.
Long live the Teflon Euro!
MORNING MARKET RATES:
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P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG POUND AND LOOK AT SECURING EUROS/ USD 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.