Home Foreign Exchange Daily Market Update – 12th May 2014

Daily Market Update – 12th May 2014

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foreign currency

Pound Sterling

On Monday the Pound was little moved against its major peers due to a lack of data releases. The only piece of data due for Sterling is the latest Lloyds employment confidence report, which is likely to have little impact upon the market. Traders will be looking ahead to Wednesday’s UK unemployment and inflation data. If unemployment falls further then we can expect Sterling to strengthen as more pressure will be placed upon the Bank of England to raise interest rates.

US Dollar

The US Dollar is holding steady against its peers as investors look ahead to this evening’s monthly US budget statement. A lack of other data is likely to leave the currency static throughout the session. Traders remain cautious following the weekend’s referendum victory for Pro-Russian separatists in Ukraine. The world will be watching to see how Kiev responds to a vote which it deems illegal.

The Euro

The Euro is trading close to a one-month low against the US Dollar and remains weaker against the Pound as investors await speeches by European Central Bank officials. The single currency remains under pressure after ECB President Mario Draghi said that the Central Bank could introduce monetary easing measures next month.

Australian Dollar

The ‘Aussie’ experienced little movement overnight despite the release of positive domestic business confidence data. The currency was unable to make gains as concerns over geopolitical tensions in Ukraine and a standoff between China and Vietnam dented demand for riskier assets.

 New Zealand Dollar

The New Zealand Dollar inched higher against its U.S. counterpart but was little moved against the Pound on Monday. Gains are expected to remain limited as investors exert caution amid ongoing Ukrainian concerns.

Canadian Dollar

The Canadian Dollar remains under pressure from last week’s dismal jobs data and weakened along with other higher –risk assets due to the situation in Ukraine.

 South African Rand

The Rand was holding its ground against several peers as the local session opened and is not far from last week’s five-month high against the US Dollar. Concerns over Ukraine are likely to soften the currency as investors grow averse to riskier assets. Investors will also be looking ahead to a mining report due out later in the week. The data will provide a good indication of what impact the four-month strike has had on the nation’s platinum mining sector.

Les Calvert is the owner an CEO of many internet property and travel related websites including this one and he regularly writes news and articles for his websites, trade magazines and newspapers.