Uncertainty in the eurozone and anticipation in the US

Greek crisis dominates eurozone agenda

A quiet day yesterday on the data front, with no major releases from any of the world’s leading economies. GBP/EUR rates remained very close to a 7 year high for the pound, moving between €1.3410 and €1.3489 throughout the day. Better than expected trade balance figures from Germany – the eurozone’s largest economy – couldn’t even help the single currency claw back any ground against sterling.

Uncertainty continues to surround Greece, as it emerged yesterday that David Cameron had chaired a meeting to discuss the potential effect on the UK if the trouble nation were to leave the euro. The eurozone remains our largest trading partner and Cameron is looking to come up with a plan to protect companies and banks in the UK should the Greek crisis worsen. Nothing has ben announced yet, but it is worth keeping a close eye on how things develop.






GBP/USD rates moved within a half-cent range throughout the course of the day, hitting lows and highs of $1.5203 and $1.5265 respectively – with no data of note coming from either the UK or US, it wasn’t expected to be a very volatile day. All focus now will be on when the US will look to raise interest rates. With the economic recovery in the US accelerating and jobs figures booming an interest rate hike could really now be just around the corner.

Stay in touch

If you’ve been following the markets you’ll know there has been heightened volatility recently. With the uncertainty in the eurozone and anticipation in the US you would expect this to continue in the coming weeks. Here at Foremost Currency we aim to be your eyes and ears on the markets. One of our dedicated, knowledgeable currency specialists can be on hand to talk you through our various contract options and find a plan that suits your needs.

Today’s data releases

This morning from the UK we have industrial and manufacturing production figures released. With both of these expected to drop from the previous reading there is potential for sterling weakness. We also have a NIESR GDP estimate out this afternoon.

A very quiet day in the eurozone today with no data releases of note. Just a couple of low key data releases from both France and Italy in the form of industrial output figures.

Across the pond in the US there’s a raft of data out, but it’s all very low key. These include a four-week and three-year bill auction plus Redbook index figures. The release with the most potential to move the markets will be wholesale inventories figures, which are expected to come in slightly lower than the previous figures.


Alistair Ryan

Currency Broker

+44 (0)1442 892061

[email protected]