Sterling and euro fight back against US Dolllar
March 12, 2010 | Posted by Dr Search- Principal Consultant at the Search Clinic Sterling has risen higher against the US Dollar back over 1.51.
The spike in confidence and the euro gains against the USD have driven this move higher- it still needs to hold above 1.52 to encourage the markets to buy sterling further.
With the budget in the pipeline I think the markets will be nervous to buy into sterling next week.
The euro has gained over a cent against the USD. Economic data certainly helped the move with Euro zone Industrial Production coming out much better than expected at +1.7% month on month and +1.4% year on year, the expectation was for +0.7% and -1.9%.
The positive industrial production data can be held in stark contrast to the dire figures from the UK earlier in the week- the weather in the UK was blamed for the downturn in the UK…well they had bad weather in Europe too.
Another reason for euro strength could be attributed to a US investment bank’s recommendation to go long on EUR/USD with a target of 1.45…could be a good position.
Speculation that authorities will help tackle Greece at the EU summit yesterday and news that ECB president Jean Claude Trichet will leave Sydney early to attend a gathering of EU leaders is helping confidence in the euro.
Although the euro has weakened since December the downturn, recently it has consolidated well and market confidence could easily return to buying the euro if the EU handle the Greece problem effectively.
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Categories: Uncategorized |
Tags: eurozone, global recession, Greenspan, Sterling, UK recession |
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