Central Bank Announcements
Traders have retreated to the side lines today as a barrage of information starts to come through from central banks. The biggest being the FOCM statement coming out of the US, albeit after the European close markets will be trying to interpret the likely outcome.
Sterling has come off a little against the USD for the fourth day as US corporate earnings continued to top estimates. Investors also await the Bank of England’s latest policy decision tomorrow, the second under new Governor Mark Carney.
Meanwhile, the number of unemployed people in Germany fell by 7,000 in June, after a 13,000 decline the previous month. These figures exceeded analyst’s expectations and we are seeing the Euro strengthen against GBP, currently trading around 1.1450.
In fact the Pound is down at its lowest in more than four months against the Euro. Much of this may also be concern over the Bank of England’s likely hood to cap rates at their present level for the foreseeable.
GBP/EUR trading at 1.140 GBP/USD down to 1.5190 and EUR/USD now standing at 1.3260.