France Economy Continues To Struggle But GBP EUR Remains Low
Yesterday French President Francois Hollande stated the country will miss their budget deficit target this year. During the elections last year Hollande pledged that he would bring the deficit down to below 3% but it looks like it will be over 3.7% this year, just highlighting how tough the economic conditions in France currently are. With France one of the largest economies in Europe and a country which has supported so many other countries during the difficult times any negative news for France could really see confidence start to be sapped from the Eurozone which in return could weaken the EUR and send GBP EUR exchange rates back up again. However, despite this news from France the markets do not appear to have reacted but I think that if we hear more negative news from France then we could start to see the negativity set in. If you need to buy Euros then make sure you speak to one of our dedicated account managers who will be able to keep you informed of all the latest currency news so you can make an informed decision as to when to trade and transfer your funds abroad.
US Economic Data – USD Exchange Rates
This afternoon we have a number of important economic data releases which could impact Sterling Dollar exchange rates. First up mortgage application figures are released which will give an insight into how the US housing market is performing. Next we will see import and export data which will be closely followed by retail sales figures and finally a budget statement at the end of the day. While the statement may give an indication as to how the Federal Reserve Bank of America (FED) see the US economy performing I believe that the retail sales figures which are released at 12:30pm today could be the biggest market mover. Retail sales is so important because the retail market makes up such a big part of the economy and so should these figures come out as predicted (which is better than last month) then we could see further USD strength today. With the USD getting stronger, especially against Sterling more positive news could really start to push the rates further down which could be bad news for those clients looking to buy Dollars.
New Zealand Interest Rate Decision
At 8pm this evening the Reserve Bank of New Zealand will announce their latest interest rate decision, the expectation is that rates will be kept on hold at 2.5% again but any change from this could mean we see some NZD volatility. So, if you need to send money to New Zealand then speak to us today so we can discuss your options which can include a limit order where you can tell us the exchange rate you would like to achieve and if it is not available our systems will monitor the markets for you and if the rates spike up to your desired level they will automatically buy the currency for you. This means that even over night we can be monitoring the markets for you.
To speak with one of our experienced currency brokers you call straight through to the trading floor on 01494 849752 or alternatively you can email me directly on firstname.lastname@example.org