Currency Exchange Rate News 13-03-2014

Overnight Currency News

Us Dollar Exchange Rate

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.

Pound Exchange Rate

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.

Best Euro Exchange Rates

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!

Australian Dollar Exchange Rates

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.

Australian dollar exchange rate weakens further

The Australian dollar weaken again today against the pounds after weaker than expected economic figures.

Australian economic sentiment was worse than feared and suggesting the economy woes are still not quite behind them Especially after the weekends auctions clearance rates on home sales fell also.

This is may give the RBA a little more wiggle room to keep interest rates on hold for A little longer.

this is a much better situation than in New Zealand which looks like being the first developed country that has to rise rates.

whilst the New Zealand economy has had rising house prices it has been difficult to rise rates as the use if the New Zealand dollar exchange rate as a carry currency.

but now the rbnz has very little choice so how will forex markets and traders take to the rise in New Zealand dollar yields?

very easily – they will buy New Zealand dollars and strength the kiwi to such a point the New Zealand economy is pushed back into recession and another round of rate cuts cycle can begin.

starting to think my career choice is that of a  evil overlord.

George Soros has a swipe at the Euro

I am finally in good company thinking that the euro exchange rate needs to fall – George Soros the financial wizard that broke the Bank of England better against the  pound has highlighted the euro zones problems.

He has said that the euro zone needs to address the current way that banking is done in the currency bloc especially Greece and Spain’s budget cuts that will lead to decades of stagflation.

Soros has been a long term critic of the Euro zone and the current way it was formed.

The ECB won’t worry to much as long as they have super Mario to convince forex traders that everything is ok and they should continue to buy euros  – all good in da hood bitches!

Pounds Forecast boosted – will we see 1.3000 against the Euro

Hi All

Analysts have increased their year-end forecasts for the pound against the dollar to the highest in more than two years amid speculation the Bank of England will increase interest rates before the Federal Reserve.

The Pound has gained a whopping 13 percent in the past year against the US Dollar, the best performer among 10 developed-nation currencies tracked by Bloomberg.

Today’s economic calendar is relatively light with the exception of euro area January industrial production, scheduled for release this morning. December figures did come in weaker than expected and markets anticipate a decent rebound for January. This is likely to prompt further euro gains.

While this mornings data is expected to point to continued modest recovery in the euro area, it is unlikely to make an impact on ECB monetary policy expectations given ECB’s President Draghi’s comments last week that monetary policy in the euro area will remain unchanged over the near term.

Bank of England hints that rates could rise sixfold within the next three years.

Bank of England hints that rates could rise sixfold within the next three years.

US Dollar exchange rate

The US Dollar exchange rate has shown a modestly firmer tone since the employment report last week, but progress has been very modest in general, and there is no US news today to justify any independent move to buy US Dollars.

Pound Exchange Rate

The Pound exchange rate made all the papers last night with the general consensus that interest rates will have to rise. Whilst I personally am not happy about this it should at least help the pound. But did this happen – NO the pound fell against the Euro and the US Dollar! the only hope is that the pound can hold the 1.2000 level against the Euro and 1.6600 against the US Dollar.

Euro Exchange Rate

The ECB members are getting their knickers in a knot over the Euro Exchange Rate being to high – to me I have no idea why it is at 1.2000 against the pound where I like it higher than 1.2500. But whilst Draghi tells the market everything is fine and that Forex traders will stick with the herd.

Why I hate the euro exchange rate

Argh – I hate the euro exchange rate!

Last night various media sources were highlighting the strength of the UK economy and that the BOE  will have to rise Interest rates by sixfold. Whilst I not in favor of interest rate rise as like many I have a mortgage the above is not a reason to sell the pound and buy euros.

Can forex traders not read?

Or am I the one with the problem?

Surely not!

Suppose whilst every Super Mario Draghi covers over the cracks in the euro economy with words like the economy is doing fine Forex traders will believe him and go with the herd buy euros

As we all know Forex traders go with what makes their bonus the best – not what is best for the greater good.

Australian Dollar exchange rate starts to climb

Hi All,

Just watching the Australian Dollar exchange rate start to climb here back above the pounds to Australian Dollar rate of 1.8500 for the first time today. The RBA has become a little more upbeat of past and the chance for further cuts have watered down by higher than expected inflation numbers.

Also the Australian Dollar has fallen more than 16 % against the US dollar exchange so may be time for Forex Traders to take a pause and buy Australian Dollars to square positions and let the market settle.

Personally I feel the Australian Dollar is very overvalued and would like to see the Pounds Australian Dollar exchange rate back above 2.000 which is more inline with its historical average trading range.

All eyes are now looking at the Australian Unemployment rate on Thursday and the New Zealand Dollar rate announcement for further clues.

Forex traders aren’t stupid

Hi All,

Forex traders continue to kick the Pound to Euro exchange rate but it has been a very tight range since the initial fall from 1.2170 to settle at 1.2000.

It is very frustrating as the news in the UK is good compared to the Euro-Zone and the likelihood the BOE will have a raise rates as the UK housing market is continuing to head north which should help. (Maybe time to become a Real Estate Agent or Mortgage Broker – could be better money!). So therefore this should be Pound Exchange Rate positive not looking at walking the gallows!

Compared that with the Euro-Zone which has raising Unemployment and falling House prices and increasing threat of deflation – hardly Euro exchange rate positive unless your Super Mario and live in cloud cuckoo!

Still we need to trundle to work with the belief that all Forex traders aren’t stupid! (Unless of course you work for UK Bank and with all the allegations of rate rigging, decide it is a good idea to Tip off BP that a $500 million FX deal is going to happen.)

Buy Euro pounds
Pounds to Euros exchange rates graph

euro exchange rate continues to get stronger and stronger

Hi All

As the euro exchange rate continues to get stronger and stronger by the day this morning’s focus will be on the UK Januarys Industrial production release. This will give us a clearer view on the economy for the first quarter and will be followed by the latest trade figures tomorrow.

At 9.30 this morning MPC members will be discussing the current outlook of the UK economy. The likeliness of anything positive coming from this remains to be seen following the individual views in recent speeches.

Today’s morning IMSFX rates:

GBPEUR 1.1990

GBPUSD 1.6619

EURUSD 1.3861

GBPSEK 10.600

GBPZAR 17.877

GBPAUD 1.8399

As you are aware our rates are always very attractive and I am always happy to quote on any amount required.

Have you ever thought about buying a Forward? Feel free to contact me to discuss in greater detail.

ECB Noyer suggest the time to Buy Euros is over

ECB Noyer  suggest the time to Buy Euros is over!

“It is clear that when the euro exchange rate starts to strengthen it creates additional downward pressure on the economy and additional downward pressure on inflation. Both cases aren’t warranted at the moment. We are clearly not very happy at the moment.”

Noyer says everything is on track and there is no need for the ECB to take any of the many possible actions if “prospects deteriorate or its economy is hit by a slowdown elsewhere in the world.”

Meanwhile, Noyer claims a plan is on track for French banks to securitize bundles of small business loans, possibly as early as end-March or April and forming a model for the rest of Europe.

Surely nothing is wrong and this will go off without a hitch. Europe couldn’t still be in the doggy do and not telling anyone that the banking system in Europe is less than fine due to bad debt loans – Shame on them!

Only Time will tell.