Euro strengthens further expecially vs USD
The Euro has found strength again as sentiment improves and fears on sovereign debt wane. The Euro saw a 1 month high against the USD in the early hours of this morning at 1.3130 and GBP/EUR is struggling to get back up toward the 1.20 mark.
Yesterdays retail figures for the UK came in at a very disappointing -0.5% after last month’s shock rise of 0.8%. Markets expected a modest 0.3% rise, food sales were down 0.5% and non-food was down 0.7%. It looks as though consumers are coming under pressure from the fiscal tightening and as the summer draws to an end.
The US Dollar has also had a bit of a bad run the last few days falling against most currencies other than the Yen letting sterling hit a 1 month high against it climbing above 1.57 overnight. Some of this weakness came from the batch of poor manufacturing data we have had from the US which was compounded by yesterdays Philadelphia Fed Manufacturing Survey which came in at a shocking -0.7 when market expected +0.5. The survey is a spread index of manufacturing conditions and is a good indicator of manufacturing trends.
The Swiss Franc fell sharply yesterday after it cut its inflation forecast for 2010 from 0.9% to 0.7%. CHF has been doing well recently as a safe haven currency managing to get back to parity against the USD although it is sat slightly above this today.
There is little out today in the way of data so markets will need to look elsewhere for guidance but it appears that going into the weekend the USD will be on the back foot but the Euro should at least be able to holds its own with most currencies trading in a reasonably narrow range.
What does this all mean for me? Well buying your EUR, USD, AUD or any other currency at the wrong time could cost you a fortune. There is no crystal ball but Currency UK can give you the information you need to make an informed decision.