Market Report

Well done to Australia great game last night and Brazil wasn't too bad either.

Yesterday we saw the dollar make solid gains against the GBP, EUR and JPY on the back of limited Economic Data. At 0.700 yesterday morning it was trading 1.8462 and by five o'clock last night it was trading 1.8272. My view for this move is that it was taken for granted that the UK was going hike interest rates and now there are softening thoughts that they will be unchanged for the next couple of months.

Figures from the States today at 13.30 are Durable Goods Orders for May which we expect to be up 0.5% after last months hefty drop at -4.4% so may see some more dollar strength this afternoon.

The Euro against GBP has also strengthened on the back of views that the UK is not going to move interests' rates just yet. My thoughts are that we could see the Euro to continue to make gains against GBP today due to the EUR/USD position which looks like it may break through the level of 1.2530 which would leave GBP in a precarious situation against crosses currencies therefore weaken sterling.

This afternoon at 14.45 the ECB's (European Central Bank) Mr Weber will speak at the ZEW economic forum regarding the current issues in monetary policy but there is no other data regarding the UK and Eurozone.

Have a great day and fingers crossed for Sunday.

DH

I must apologise to anyone who read yesterdays report, where I recommended you should watch Argentina play Holland last night! A little bit disappointing as a game.

Yesterday saw comments from the FED suggesting there is room for more interest rate hikes in the States. This resulted in the GBP/USD rate falling from 1.8450 to 1.8350 and then returning to 1.8420 later in the day.

The minutes of the last Bank of England meeting were released yesterday, and as expected they came out at 7 - 1 in favour of keeping interest rates on hold. There were clear indications from the minutes that it would be a few months before they consider increasing interest rates, and as a result, GBP/EUR rate fell from 1.4650 to start trading today at 1.4570.

There is very little in the way of economic data today, so hopefully we can relax and watch the wonderful underperforming Brazil tonight!

Have a good day.

DE

Another poor performance from England last night, but at least we top the group and avoid the Germans till a later round!

Housing data was released from the States yesterday, and the figures came out a little better than expected. This resulted in the GBP/USD rate coming down from 1.8425 to 1.8370 for a couple of hours before returning to where it began. Today the rate has started trading between 1.8435 and 1.8475 and there is little expected in the way of change today.

Today sees the release of the minutes from the last Bank of England meeting. It is expected to show that the vote was 7 to 1 in favour of keeping interest rates on hold. Only a major change to this will cause much movement in the exchange rate. GBP/EUR rate has carried on trading in the narrow range of 1.46 and 1.4675.

Have a good day, and I would recommend that you all watch Argentina against Holland tonight, it should be a cracker!

DE

Today sees the release of the housing data from the United States which if as predicted, comes in lower than expected, we may see the Dollar start to come under more pressure.

We are currently showing a rate of 1.8438 this in comparison to yesterday at the same time at 1.8425 shows the markets are waiting for an indication for the next move.

No data to be released today that would have any real effect on the Sterling rate against the Euro. Sterling seems to be very steady at present standing at 1.4664 after yesterdays opening at 1.4639. With a growing belief that the interest rate will remain unchanged for the foreseeable future, with inflation not seen as to much of a problem this may prove to be a good time to buy those Euros.

Enjoy the football

VC

Morning all hope you had a lovely weekend. Today sees another quiet day for data released from the United States, so all focus will be directed towards tomorrows Housing data. With the US economy currently performing fairly well judging by some recent manufacturing surveys, the housing market remains a concern. The data looks as if it will be bad news for the Dollar and may give us the next indication of the Dollars direction. We are currently seeing a rate of 1.8425 after a low reached on Friday of 1.8561.

Sterling against the Euro seems very stagnant at the moment having touched 1.4656 this morning sees the rate at 1.4639. With the release today of a survey from the Bank of England inflation seems less of a problem than expected meaning we may not now see a rise in the interest rate. This could put the pressure firmly back on Sterling.

Have a nice day.

VC