Market Report

Good morning all, after last nights meeting The Federal Reserve Bank of New York (FED) raised the interest rate by one quarter of one percent. This was widely predicted and had already been written into the rate. What was more important was the tone of the meeting, the FED seemed to be saying they may not be putting rates up again until September, and if they do it could be the last for some time. The markets reacted badly against the Dollar which has now fallen back to 1.8310 this morning compared to yesterdays high of 1.8090. This may see the start of a reversal in the Dollars fortunes.

Sterling has recovered some ground against the Dollar but still sees itself suffering against the Euro. This morning we see the Sterling rate against the Euro at 1.4405 this seems to be testing the 1.44 mark and we could see the rate as low as 1.43 before to long.

Have a great weekend and let's hope we are looking forward to a semi final place for England next week.

VC

All eyes will be fixed on the announcement this evening from the Federal Reserve Bank of New York (FED). The markets have already priced in a quarter percent rise which is widely expected to be the case. Should we see any variation in this we may see some sharp movement for the Dollar. We also expect the language in the statement to strongly favour another rate rise in August. This all seems to point to the Dollar gaining in strength.

The only important data from the Euro zone today see's the German unemployment figures released which are predicted to show a slight improvement. Sterling of late has been squeezed by both the Dollar and Euro seeing this mornings rates stand at 1.8160 and 1.4480 respectively. With interest rates set to rise again before to long in both the United States and the Euro zone sterling may continue to suffer.

Have a nice day.

VC

Good morning all today sees very little data released from the United States. The dollar seems to be going from strength to strength. On the first of June we saw the dollar standing at 1.8714 this morning sees it at 1.8172 this all appears to be because the interest rate hikes in the United States seem set to continue.

Sterling on the other hand has suffered against the Dollar and the Euro over recent days with a high of 1.4643 on the first of June this morning sees the rate standing at 1.4470. In my humble opinion this trend may well continue with GBP falling as low as 1.43 and beyond. It may be prudent to buy those Euros as soon as possible.

Have a nice day.

VC

Yesterday we saw the EUR continue its gains against GBP and we expect this to continue until Wednesday when the UK CBI Data is release to give us an idea of which way the next move maybe, but I think we may see the GBP EUR move down toward the 1.43 level.

The main highlight in the euro zone for data today is the German IFO survey at 9am. Which may be slightingly positive for GBP but I feel this is common knowledge and has already be calculated into the EUR Price.

GBP USD yesterday didn't move back up as expected and stay around 1.8230 and today we see the release of the Conference Board's measure of consumer confidence which is expected to move up to 104.0 in June from 103.2 in May. This may contribute to a slightly stronger dollar this afternoon.

Have a good day.

DH

Friday we saw our thoughts confirmed GBP weaken against both the Dollar and the EUR.

The Dollar at lunchtime Friday was trading at two month low of 1.8127 but has moved back up to 1.8227 this morning. The FED this week it is widely expected to move there interest rates up to 5.25%. Therefore we with this move already worked into the rate we could see GBP gain against the Dollar and possibly move back up to the 1.8350 level.

With regards to GBP EUR we continue to see slight EUR strengthen. It's slim pickings this week for UK data, with only the CBI Distributive Trades on Wednesday. The number is expected to be a positive and will continue to ease concerns regarding inflation and rate hikes.

DH