Currency converter wise money waits
Sterling traded at 69 day highs against the USD as the market remains focussed on the Bank of England meeting tomorrow. The median forecast from economists polled by Reuters last week gave a 25% likelihood of an April hike.
The euro held steady above the 1.33 level against the dollar with the markets eagerly awaiting further data in order to determine the scope for further interest rate hikes from the ECB over the coming months. Yesterday saw the release of PMI services for May.
The increase in oil prices and seemingly in some materials is affecting industry costs in the euro zone and fuelling inflation. It is slightly different from the scenario we had towards the end of last year when everybody believed in the oil and raw material market calming down.
Elsewhere the Reserve Bank of Australia announced the decision from its monetary policy meeting earlier, deciding to leave rates unchanged at 6.25%. Although markets’ expectations were mixed the reaction following the announcement was uniform, with a knee-jerk reaction lower in the Aussie however by the time trading in London opened we are back to levels seen before the announcement.
The Australian dollar was said to be supported by firmer industrial metals prices and the return to favour of the carry trade. There is also a widely held view that the market simply deferred its expectations for a rate hike in May, rather than cancel it.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The euro held steady above the 1.33 level against the dollar with the markets eagerly awaiting further data in order to determine the scope for further interest rate hikes from the ECB over the coming months. Yesterday saw the release of PMI services for May.
The increase in oil prices and seemingly in some materials is affecting industry costs in the euro zone and fuelling inflation. It is slightly different from the scenario we had towards the end of last year when everybody believed in the oil and raw material market calming down.
Elsewhere the Reserve Bank of Australia announced the decision from its monetary policy meeting earlier, deciding to leave rates unchanged at 6.25%. Although markets’ expectations were mixed the reaction following the announcement was uniform, with a knee-jerk reaction lower in the Aussie however by the time trading in London opened we are back to levels seen before the announcement.
The Australian dollar was said to be supported by firmer industrial metals prices and the return to favour of the carry trade. There is also a widely held view that the market simply deferred its expectations for a rate hike in May, rather than cancel it.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: Bank-of-England, currency-converter, wise-money
posted by Wise Money @ 3:04 PM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home