US Dollar:
A recovery in stock markets late last week saw the dollar slip against the euro and pound as safe haven currencies rallied back from their recent highs.
This dollar moves seems to have come on the back of comments by the Federal reserve Chairman Ben Bernanke that the economy was leveling out. The greenback has now taken nearly town cents off the pound after its lows of $1.6623 on Friday, to rally to $1.6367 this morning. There was a smaller recovery for the dollar against its European counterpart, with nearly one cent taken back since Friday, for EUR/USD to trade at $1.4290. Currency dealers will keep paying close attention to equity markets in Europe and the US later in the day in the absence of other significant trading cues such as economic data.
Sterling:
Sterling closed out the week on a rallying market last week as once again we saw the pound rise in line with stock markets. Cable hit $1.6623 on Friday as risk appetite grew in the markets, pushing up the higher yielding currencies. The FTSE 100 index, which has soared almost 40% since its low point in March, closed at a 10-month high of 4,850 last week. Some fund managers believe that it could break through the psychological important 5,000 level this week. However, it was the turn of the euro to push itself above the pound in the race off against the dollar, with both currencies usually doing well against the buck when risk returns to the markets.
The pound dropped over a cent against the single currency to fall below the 1.15 level, only dragging itself off that floor this morning to pick up slightly to 1.1524. This morning we have seen some weakness for cable as comments from the US fed Chairman filter through the markets, where he spoke of the economy was leveling out. This has seen a fight back for the buck as it took nearly two cents off the pound. Forthcoming UK figures may show that the economy performed slightly better than initially expected in the second quarter. Some economists believe revised figures due on Friday will show it shrinking by 0.7%, rather than the 0.8% that was originally estimated.
Euro:
The euro rose again today as risk appetite continued in Asian trade, following on from last weeks bull run in the equity markets, increasing buying of risk sensitive currencies with the euro being one of them. This saw the single currency take nearly two cents off the dollar from Friday to hit $1.4373. A slight fight back from the dollar has now been seen as comments from the Fed chairman boosted the dollar. The euro did fair better than its UK counterpart in the run off for the rally in less risk sensitive currencies. We saw a gain for the euro against sterling of 1.5% for EUR/GBP to hit 0.8700.
General:
The Aussie and Kiwi dollars both took full advantage of a strong rally in the equity markets to make significant gains against both the pound and US dollar. Sterling/Aussie has now fallen down to AUS$1.9631, nearly equaling its low point two weeks ago where it reached AUS$1.9585.
A recovery in stock markets late last week saw the dollar slip against the euro and pound as safe haven currencies rallied back from their recent highs.
This dollar moves seems to have come on the back of comments by the Federal reserve Chairman Ben Bernanke that the economy was leveling out. The greenback has now taken nearly town cents off the pound after its lows of $1.6623 on Friday, to rally to $1.6367 this morning. There was a smaller recovery for the dollar against its European counterpart, with nearly one cent taken back since Friday, for EUR/USD to trade at $1.4290. Currency dealers will keep paying close attention to equity markets in Europe and the US later in the day in the absence of other significant trading cues such as economic data.
Sterling:
Sterling closed out the week on a rallying market last week as once again we saw the pound rise in line with stock markets. Cable hit $1.6623 on Friday as risk appetite grew in the markets, pushing up the higher yielding currencies. The FTSE 100 index, which has soared almost 40% since its low point in March, closed at a 10-month high of 4,850 last week. Some fund managers believe that it could break through the psychological important 5,000 level this week. However, it was the turn of the euro to push itself above the pound in the race off against the dollar, with both currencies usually doing well against the buck when risk returns to the markets.
The pound dropped over a cent against the single currency to fall below the 1.15 level, only dragging itself off that floor this morning to pick up slightly to 1.1524. This morning we have seen some weakness for cable as comments from the US fed Chairman filter through the markets, where he spoke of the economy was leveling out. This has seen a fight back for the buck as it took nearly two cents off the pound. Forthcoming UK figures may show that the economy performed slightly better than initially expected in the second quarter. Some economists believe revised figures due on Friday will show it shrinking by 0.7%, rather than the 0.8% that was originally estimated.
Euro:
The euro rose again today as risk appetite continued in Asian trade, following on from last weeks bull run in the equity markets, increasing buying of risk sensitive currencies with the euro being one of them. This saw the single currency take nearly two cents off the dollar from Friday to hit $1.4373. A slight fight back from the dollar has now been seen as comments from the Fed chairman boosted the dollar. The euro did fair better than its UK counterpart in the run off for the rally in less risk sensitive currencies. We saw a gain for the euro against sterling of 1.5% for EUR/GBP to hit 0.8700.
General:
The Aussie and Kiwi dollars both took full advantage of a strong rally in the equity markets to make significant gains against both the pound and US dollar. Sterling/Aussie has now fallen down to AUS$1.9631, nearly equaling its low point two weeks ago where it reached AUS$1.9585.
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