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HiFX Market Update 25th September 2013

Please find below the market commentary from the HiFX Affiliate Team. If you have any questions please do not hesitate to contact us on (+44)1753 752740 or [email protected]

GBP/EUR
Range of the week: 1.1808 – 1.1899
Variance on £10k - €91

The Pound is still putting pressure on the Euro for many of the reasons mentioned last week.

After the weekend the main news out of Europe was Angela Merkel winning again in the German General Election ensuring she is in power for a third term. As is so often said, Germany is the powerhouse economy of Europe and so this election result was keenly watched. Merkel’s CDU party were just short of a full majority and their previous coalition partners were completely thumped to the point they didn’t even get a single seat in the Reichstag and so now there is slight uncertainty as the CDU seek a potential new coalition with someone else, the most likely candidate being the SPD though there are concerns they are hesitant to do this.

Although seen as reinforcement of Merkel’s spending cuts policy being popular in Germany, peripheral EU countries like Greece groaned in unison as this was seen as a win for Austerity.

Out later this week we have UK GDP figures being released tomorrow with the expectation of 0.7% growth. A raft of consumer confidence reports out of Europe are released on Friday as well as German CPI.

GBP/USD
Range of the week: 1.5955 – 1.6162
Variance on £10k - $207

Again, the Pound is currently strong against the Dollar off the back of the FOMC decision last week to not taper back QE due to economic data not being good enough yet. This has lead to markets now paying even more attention to the economic data that comes out of the US such as Durable Goods Orders that are out today.

US Consumer Confidence came out slightly lower than expected yesterday and Obama currently has a headache trying to avert a) a government shut down if spending bills are not passed on the 1st October and b) the continuing saga of the US debt ceiling crisis, negotiations need to be held with the Republicans in an effort to agree terms for it’s increase.

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GBP/AUD
Range of the week: 1.6872 – 1.7097
Variance on £10k – AU$225

No massive changes here, Chinese manufacturing levels have increased which has pleased Australian exporters. Other than that there is the growing expectation of a further rate cut from the RBA as business owners in Australia bemoan what they perceive as an overvalued Dollar.

GBP/NZD
Range of the week: 1.9086 – 1.9439
Variance on £10k – NZ$353

Again, no big changes here. The trade deficit for NZ grew to a 5 year high in August as the nation’s biggest dairy exporter announced a shrink in profits. There is talk that the reason for this is being blamed on several food scares recently, one of which being the export of a load of rotten apples to China!

GBP/CAD
Range of the week: 1.6385 – 1.6546
Variance on £10k – CA$161

The Pound continues to trade at a 3.5 year high against the CAD off the back of FOMC announcement last week, no other data

GBP/ZAR
Range of the week: 15.52 – 15.8966
Variance on £10k – R3766

No Data

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