Market Report

We saw a very quiet day for the Dollar yesterday opening this morning at 1.8644. Today sees the release of the non farm payrolls from the United States (jobs created) this could be a good indicator for the next move and all the signs are that the figure will be a good one for the Dollar allowing it to strengthen a little more.

As predicted Sterling seems to be coming under a little pressure with the Euro and Dollar looking reasonably strong. This morning Sterling against the Euro stands at 1.4543 with all eyes on the figures to be released from the United States at 1.30pm (Gmt).

VC

Good morning to you all, well yesterday turned into a very interesting day for the Dollar with the FOMC going against all predictions and talking about rate rises to combat a rise in inflation. This had a direct effect on the dollar strengthening from a low of 1.8858 to a high of 1.8640 this morning. This in the short term seems to support the Dollar but I do stress the short term as I believe there will be a change in sentiment before to long putting pressure firmly back on the Dollar.

I know that I sound as if I am repeating myself but the rate between Sterling and the Euro has hardly moved in the last month. On the 3rd of May the low was 1.4539 this morning the rate stood at 1.4594 but as I said yesterday movement is afoot at the ECB to raise interest rates by as much as half of one percent and this with the Dollar strength could see Sterling getting squeezed from all angles. Watch this space.

VC

After yesterdays prediction that the dollar would come under more pressure it promptly fell to a low of 1.8870 before recovering slightly this morning to 1.8790. the general feeling is that the dollar will come under increasing pressure with the FOMC minutes due from the last meeting at 19.00 GMT today likely to show a distinct lack of encouragement for an interest rate hike anytime soon.

Sterling against the Euro has hardly changed over the last week moving in a range of about 50 points in either direction, Yesterdays high of 1.4647 compared to the current rate of 1.46 leaves everyone waiting on the next move, this looks likely to be driven by the fact the ECB`s next move could be to increase interest rates in the Euro zone by half of one percent (50 BHP) which would inevitably put pressure on Sterling.

Once again we have to look to the United States for any interesting figures to be released today with the minutes from the last meeting of FOMC released at 19.00 GMT.

VC

With everyone back at work and refreshed after the long weekend there seems to be another move against the dollar in progress. The dollar reached a high of 1.8530 on Friday and this morning sees us back at 1.8758 with more negative movement likely in the next few days.

Sterling against the Euro once again seems to have settled around the 1.46 area having gone as low as 1.4566 on Friday. There is not a lot to suggest this will make any dramatic moves in the short term.

Figures to be released today are thin on the ground with the most influential being the U.S trade data, which looks like it will be putting more pressure on the dollar.

VC