Market Report

Morning dedicated readers! A win for Essex in the cricket last night might not interest most of you, but it keeps me smiling this morning!!

Yesterday saw both the European Central Bank and the Bank of England decide to keep interest rates on hold for the time being. Despite this, ECB president Trichet heavily hinted at a rate hike next month. This saw GBP/EUR fall from just above 1.44 to reach a low of 1.4370.

The GBP/USD rate stayed quiet yesterday trading around the 1.84 level. Today sees the release of the US non farm payroll figures, which is expected to come out at around 215k, up from 75k in May. Any big difference to the expected figure could see GBP/USD become volatile.

The only thing to keep our eyes on today is the non farm payroll, and to look forward to the world cup final on Sunday. Enjoy!

DE

Good morning all, today sees the Dollar having recouped some of the losses of recent days standing at 1.8348 after reaching a low of 1.8487 yesterday. Not much in the way of interesting data to be released today so all eyes will be firmly fixed on Europe.

The Bank of England will today announce its next move on interest rates. This is widely expected to remain unchanged. More interesting will be the European Central Banks decision and more importantly the wording of the meeting. A rise in interest rates by one quarter of one percent in August is almost certain, but most people will be hanging on every word to see if there is room for more increases in the future. The Sterling rate against the Euro this morning stands at 1.4405. In my opinion today's announcement will see the Euro strengthen across the board with the Sterling starting to fall to around the 1.43 mark against the Euro.

Have a nice day

VC

As predicted the Dollar has been stagnant over the last 24hours, currently standing at 1.8421 after opening yesterday at 1.8428. There are very few figures released today from the United States, the U.S factory orders for May will be released at 3pm but we do not believe this will have any real effect on the rate.

Sterling is still showing signs of weakness against the Euro, on a number of occasions we have seen the rate break down through the 1.44 level only to recover and return to its present rate of 1.4438. Today sees the release of the Euroland and United Kingdom services PMI with both these set to show elevated levels for June. This would imply both economies are looking healthy at present. All eyes will now turn to tomorrows European Central Banks rate decision which looks as if there will be another rate rise possibly in August. Bad news for Sterling I am afraid.

VC

Good morning all today sees the United States celebrating the 4th of July holiday. With the markets closed there is little to suggest any real movement in the Dollar today. This morning the Dollar opened at 1.8429 after opening at 1.8426 yesterday. This may well be the low for the Dollar for a while with some experts predicting the Federal Bank of New York may well return to the point of view that there is more room for interest rate rises after all.

Sterling is still suffering against the Euro with the rate currently standing at 1.4411 this seems to be driven by the fact the Euro zone look likely to carry on with their interest rate hikes, where as the UK seem happy with the current rate. Some good news for the UK saw the manufacturing productivity rise to its highest level for over 18 months. This may prove to help Sterling in the short term but in my opinion this will be short lived and we could see the rate as low as 1.43 before to long.

VC

Good morning all, today sees the Dollar opening at1.8439 after touching a high on Wednesday last week of 1.8141. This seems almost entirely due to the raise in the interest rates in the United States being only a quarter of one percent with the possibility that there may not be too many more. There are no important data releases from the United States today and we may have to wait for some more to give us an indication of the next move in the Dollar.

This week the main focus will be on the European Central Bank (ECB) and the Bank of England (BoE) monetary policy to be announced on Thursday. Both look set to leave interest rates unchanged. Having said this, the BoE are a lot clearer in their policy to leave rates unchanged for the foreseeable future. The ECB on the other hand look much more likely to raise there rate over the next few months. With this said I believe the Euro looks set to continue to gain in strength against Sterling.

Have a good day.

VC