Market Report

There has been quite a bit of movement in the currency markets over the last week mainly seeing the dollar regain some of the losses that it suffered over the last calendar month. The dollar has moved from a low of 1.8920 just over a week ago to 1.8720 this morning but the GDP figures that were released yesterday looking good for the dollar there may be more room for improvement with data coming from the University of Michigan this afternoon.

After yesterdays prediction that there was no real sign that the sterling price against the Euro would move to much having been stuck between 1.46 to 1.47 for some time there seems to be a move downwards this morning with the rate testing 1.46 and possibly moving further down but as we said yesterday but the markets are showing several signs of sluggishness, ahead of the long weekend.

DH

The Dollar is still trying to recuperate from its recent poor run; yesterday it made some ground back against the Euro and Sterling. Sterling was looking good after the poor economic data from the States at lunchtime, rising back towards 1.89 once again. Late in the afternoon there was a rapid change in mood throughout the markets with the dollar gaining in strength and the market dropped by two cents in just two hours.

The Sterling price against the Euro has been active between 1.46 and 1.47 for the last two weeks with no real sign of this changing in the near future.

Today will see the release of the GDP figures from both the U.K. and the States, but the markets are showing several signs of sluggishness already, ahead of the long weekend.

VC

The dollar still continues to be of great discussion and after hawkish comments from the Fed Reserve officials possibly suggesting a further interest hike in the US. Our opinion is still that Sterling will not break through the 1.90 mark. Although figures from the US at 13.30 might give us some indication on what way the next move shall be.

The Euro continues to be in a stalemate situation against sterling although the European Central Bank has recently been seen to give a thumps up for a rate hike. Our opinion is that there will be a 25 basis point move up on 8th of June. Economic Data for the UK at 11.00 CBI report which looks to be positive for GBP.

DH

Welcome to the new market reports page where we expect to keep you informed, motivated and now and again amused as we bring you our slant on the markets.

The dollar has taken a lot of heat over the past weeks and we are just reaching a stage where consensus is evenly split between those who think recovery is round the corner to those who think it could fall out of the proverbial bed. Our opinion is that Sterling has had many better opportunities to break the magical 2 level over the past years and there is little evidence in the UK economy to suggest this is the time.

The euro is in a slightly stronger situation so we could see Sterling weaken against both the Usd and the euro. On the day-to-day market there is very little data out to suggest any wild movements although most eyes are on the fall in equities at the moment but it only takes one thing to change the focus and emphasis. It's a shame we weren't open earlier because I had one sure tip for you. M&S posted profits of £745m this morning; I would like to think my wife has contributed most of that.

Call us if you need any FX advice either on rates or the market in general.

DW