Wednesday 7th March 2012
Good morning. For Pound/Euro rates, it’s been a very flat week so far with the cross being range bound around the €1.20 level. Sterling fell against the US Dollar however due to a fall in House Prices and poor Retail Sales. Weakness in the Euro has counteracted the fall in the Pound, which is why GBP/EUR has hardly moved, as yesterdays chart demonstrates:
~Currency Movements on Tuesday 6th March 2012~
Pound/Euro rates remain flat around €1.20
As the graph above shows, GBP/EUR rates again hardly moved yesterday, and were in the 1.1980 – 1.2010 range all day long. The Pound actually weakened early in the day following a fall in UK House Prices, and poor Retail sales suggesting the economy is still sluggish.
The exchange rate then bounced back due to mounting concern over the Greek debt issue. The bailout deal still isn’t fully agreed, and there is a deadline on Thursday regards bond auctions which could mean Greek suffers a disorderly default. The news worried investors, and the Euro weakened as a result, pushing rates back to €1.20 or so.
Despite the relatively good rates, it would appear the pair cannot sustain levels above €1.20. The rate keeps briefly breaking through this barrier, only to correct lower quite quickly. The current rate is only just below the best in 19 months, so for any Euro buyers that want to take advantage of the rate, send me a free enquiry now.
Pound/Dollar drops to 11 day low
Due to the poor UK data, GBP/USD rates fell yesterday. The rumours coming from te Eurozone also helped to strengthen the Dollar, so while we saw GBP/EUR recover in the afternoon, the GBP/USD rates continued to fall as the charts above clearly demonstrate.
With the EU debt story far from over, I personally think the US Dollar could continue to strengthen, which may well pull GBP/USD even lower in the coming weeks.
There are GDP figures today from down under. Staying with the antipodean currencies, there is a New Zealand interest rate decision. The only EU data of note are German Factory Orders. Most data today is from the states: Employment, Productivity, Mortgage Applications and Consumer Credit.
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