The Pound under pressure...
The US dollar managed a slight recovery last week on economic releases that gave a welcome breather to the currency.
Durable Goods, New Home Sales and Chicago PMI were all better than expected. A key determinant of the dollar's direction going forward is likely to be the state of the US consumer which continues to suffer under spiralling gasoline prices coupled with a worsening employment situation. As such the Non Farm Payroll's due this week is eagerly anticipated.
The euro came under brief pressure on Friday following a disappointing set of German retail sales data which unexpectedly declined for the second month, down 1.7% mom and 1.0% yoy.
The recent flow of softer German data has pressured the euro lower however there remain market observers who believe we could see EURUSD trade back at the 1.60 level in the not too distant future.
Closer to home, Sterling is starting the week a touch softer on the news from Bradford & Bingley.
Rate announcements from the Bank of England and the ECB are due this week, both are expected to keep rates unchanged - The MPC is anticipated to leave rates unchanged at 5.00% on Thursday for the second month in a row as inflation pressures prevent any easing in rates to provide a stimulus to the economy.
From the eurozone the press conference that follows will likely once again provide more excitement than the announcement itself.
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.
Durable Goods, New Home Sales and Chicago PMI were all better than expected. A key determinant of the dollar's direction going forward is likely to be the state of the US consumer which continues to suffer under spiralling gasoline prices coupled with a worsening employment situation. As such the Non Farm Payroll's due this week is eagerly anticipated.
The euro came under brief pressure on Friday following a disappointing set of German retail sales data which unexpectedly declined for the second month, down 1.7% mom and 1.0% yoy.
The recent flow of softer German data has pressured the euro lower however there remain market observers who believe we could see EURUSD trade back at the 1.60 level in the not too distant future.
Closer to home, Sterling is starting the week a touch softer on the news from Bradford & Bingley.
Rate announcements from the Bank of England and the ECB are due this week, both are expected to keep rates unchanged - The MPC is anticipated to leave rates unchanged at 5.00% on Thursday for the second month in a row as inflation pressures prevent any easing in rates to provide a stimulus to the economy.
From the eurozone the press conference that follows will likely once again provide more excitement than the announcement itself.
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: inflation, interest rates, US Dollar, Weak Sterling
posted by Wise Money @ 9:20 AM
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