Weekly Financial Notes 26/02/2016

by Admin on February 26, 2016

UK
Break for the pound
Yesterday evening saw the pound sigh a breath of relief as the sell-off seemed to take a hiatus, finishing the day unchanged against the dollar and the euro. The morning saw the UK confirm that growth had hit 0.5% for the final three months of 2015. While this figure may seem paltry, it does mean that the UK grew quicker than Germany, France and the USA. The GDP report showed that it was household spending and business investment that buoyed the economy while the country’s trade deficit dragged.

Bank of England Governor, Mark Carney, was also speaking last night in Shanghai. The main message of his speech, delivered to various G-20 central banks, was to warn them against pushing interest rates too low and targeting weak exchange rates. His remarks against negative rates echoed his comments to Parliament’s Treasury Committee when he said that he had no intention or interest to implement them.

EUROPE

All quiet on the Western Front

The volatility we have seen of late took a sharp fall with very little movement across the major currencies throughout the day yesterday, seeing the euro close within 0.1% of where it opened versus the pound and US dollar. This was largely due to the absence of any political speech and all economic data releasing close to expectations.

The early morning saw European core CPI release as expected at 1% and final CPI release at 0.3% versus an expectation of 0.4%. Italian retail sales posted at -0.1% versus an expectation of 0.5%, however, due to the fact that this data is viewed as lower-tier, the effect on the markets was minimal.

This morning saw the release French consumer spending as expected at 0.6% and French monthly CPI at 0.2% versus a previous figure of -1%. This improvement on last month has boosted the euro, seeing it open 0.14% up against the pound.

 

Please note all speculative data is opinion based and gathered from some of the market leaders in currency exchange. R&R Ibiza will not be held responsible for any losses incurred as a result of the opinions stated or following the advice given.

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