FCD Currency World Cup
Yesterday England wimpered out of the FIFA world cup while things got a little tasty in the Italy Uruguay game! Unfortunately once again the English football team couldnt live up to their currency and ended up drawing with Costa Rica despite in the FCD Currency World Cup Sterling coming out on top compared to the Costa Rican Colon. Well, as England fly back home the FCD Currency World Cup continues and today we focus on Ecuador against France in an almighty battle of the USD against the Euro.
Ecuador – US Dollar (USD)
The currency used in Ecuador is the US Dollar which was introduced in 200 replacing the Ecuadorian Sucre. Recently the Dollar has been under pressure with Sterling Dollar exchange rates pushing up over 1.70 on the mid market level which is approximately a five year high but this week there is a lot of economic data due for release which could impact upon the USD. Today we have mortgage approval figures, durable goods orders and probably most noteably the latest set of Gross Domestic Product (GDP) figures which are predicted to come out showing a large decline which could cause some major Dollar weakness, GDP is announced at 13:30 today. Tomorrow the economic data releases for the US increases with jobless figures, personal consumption numbers and a speach from a member of the Federal Reserve Bank of America. It is likely that the jobless claims will be the most noteworthy tomorrow and the expectation is for the levels to remain fairly flat however, should we see an increase in the number of people out of work then it could yet again compound the recent US Dollar weakness and push rates up even higher which could be good news for those clients looking to buy Dollars.
France – Euro (EUR)
This week remains quiet for the Euro with the next major economic data release due out on Friday in the form of consumer confidence figures which are due to show a slight improvement but still remain negative. In the meantime the Euro has fought back a little against Sterling but still remains very weak meaning there are some excellent opportunities for clients looking to buy Euros at present. The outlook however remains unclear although many analysts predict that the continued positive news in the UK is likely to keep Sterling strong while in the Eurozone the effects of the recent interest rate cut are still sinking in with the European Central Bank waiting and hoping that it will have a positive impact on the economy. In France itself this Friday we have the latest GDP figures which have been flirting with falling into negative territory and so a weak figure could spread further economic issues through the Eurozone and could damage the EUR even more.
So, comparing the two currencies the rate is currently around the €1 equates to $1.36 level meaning the Euro is marginally stronger, so in the FCD Currency World Cup it is a win for France and so we will wait to see if the FIFA world cup will follow suit this evening.
In the meantime if you would like to discuss your currency requirements and the options available to you please call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively you can email me directly at firstname.lastname@example.org