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Sterling Bulls Back in Town

Sterling Bulls Back in Town

Good morning. The forex markets constantly move and what was the case last week is never necessarily the same the week after. As data is constantly released so is the positioning of the major currencies and people’s confidence in them.

 

Coming off the rails to be the current favourite is Sterling.  We have seen better than expected construction and manufacturing PMI out of the UK in recent days and if the Services PMI also comes in positively then we could well see the market move on this cheery news. The difference between the UK and the Eurozone could not be more noted. The British Chambers of Commerce has also got in on the act, saying that Britain looks on course to expand at a strong pace in 2015 and warns against a rate hike due to the sensitivity of the UK economy to interest rates as we are dependent on consumer spending and mortgages.

 

In today’s daily Greek report, it appears that Greece have prepared a debt restructuring plan which unsurprisingly does not include a debt write-off. Today, Greek PM Tsipras and EU Commission President Juncker will meet, no doubt to discuss these terms. There is also a meeting between Mario Draghi and Greek Finance Minister Varoufakis. However, there does appear to be an obstacle to all this new-found calmness and willingness to compromise in Angela Merkel who has commented on how negotiations will last for months.

 

After a long session of weakening, the New Zealand Dollar was the major mover overnight after RBNZ Governor Graeme Wheeler said that he expects to keep interest rates on hold for some time. He also added that the NZD is overvalued and its current level is unsustainable and we should expect it to weaken further.

 

Major news out today are the Greek-Eurozone meetings, UK Services PMI, Eurozone retail sales, US mortgage applications and PMI.

 

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