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534 Posts
Discussion Starter · #1 ·
Good Morning,

Range of the week: 1.1779 – 1.1847
Variance of the week on £10k=€68

Very little movement this week following the EURs gains against the pound last week on the back of the bail out agreement with Greece being finally met.

Standard & Poors has classified Greek debt as in “selective default” following the latest deal with creditors to reduce its debts. The terms of the deal (which saw creditors taking a ‘haircut’ of 53.5% of the debt held) have prompted the latest downgrade from the already “junk” status it held. This had no impact on exchange rates as the move had been widely expected.

The bailout agreement now makes its journey of ratification through the domestic parliaments for official ‘sign-off’, important to note the German Bundestaag approved the measures with little resistance, and there are no expectations of a failure to achieve a ‘rubber stamp’ as it makes its way through member states.

LTRO2 has been underway overnight – LTRO stands for Long Term refinancing operation and is in effect a cheap loan scheme for European banks issued by the ECB. Round one was carried out on 21 December, when banks took €489 billion from the ECB. The objective of the LTRO is to boost cash flow in the market. Results just released at €529 billion, show a slightly higher take up than expected.

Range of the week: 1.5799 – 1.5937
Variance of the week on £10k= $138

US Consumer confidence was surprisingly strong at 70.8 against expectation of 63. No impact on fx rates as the USD weakens this morning at the return of risk appetite sees buyers move out of their ‘safe’ positions. Worth keeping an eye on commodity currencies as the usual main benefactors of these moves.

Range of the week: 1.4682 – 1.4891
Variance of the week on £10k= 209AUD

Range of the week: 1.8785 – 1.9056
Variance of the week: on £10k= 271NZD

NZ Trade balance figures for Jan – monthly figure -199M against expectation of 167M. YTD figures 646M against expected 1300M.

No effect on exchange rates, still wallowing in the sub 1.90’s for the majority of trading.

Range of the week: 11.85 – 12.1284
Variance of the week: on £10k=2784 ZAR

No major news or data for the week so far

Range of the week: 1.5755 – 1.5941
Variance of the week: on £10k= 186CAD

No major news or data for the week so far

ITN: Some huge movement in favour of GBP against ILS (Israeli Shekels) in the last week on the back of current conflict. On Monday we posted a 2 year high above the 6 level. Not a major pair for us but we may see an uplift in enquiries on the back of this.
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