Yesterday was a very volatile day with ECB president Mario Draghi surprising the markets by cutting interest rates. EUR plunged 100 pips against the USD in a matter of minutes with Sterling advancing against the single currency up to its highest level in recent weeks. The EUR was volatile for most of the day with speculation on the near collapse of the Greek Government. After the EUR retraced down to the 1.3670 level it advanced later on in the afternoon recovering all of the last ground with Papandreou calling off the referendum. So, Greece is now back to being ‘firmly committed’ to the Euro. I think Merkel and Sarkozy simply issued an ultimatum to the Greeks so they had to play ball. Everything is rumour and counter rumour at present. Even if Papandreou win’s the confidence he may resign. Should a vote of no confidence be returned then uncertainty again creeps back into the market.
Today we have non farm payrolls out of the US, with a continuation of positive numbers likely. Expectations vary from 70k to the more optimistic number of 125k being posted. I think we’ll come in toward the lower end of these expectations as although the labor market is growing again in the US, it is very marginal. The NFP figure would normally be the focus of the day however the Greek saga looks set to be the headline act for today.
GBP is largely out of the headlines at the moment. I’d say the outlook for GBP is bearish however with the EUR trading volatile on intraday basis I think we could see GBP/EUR push a little higher. Contact to discuss market orders and how you can utilise these to catch the high’s of the market.
We’ve had EMU PPI out this morning coming in better than expected at 0.3%. The big figure out today is as mentioned above, the NFP figure. Expect volatility on the USD this afternoon.
Halo Financial are located at:
11 Ivory House, Plantation Wharf, , Greater London, SW11 3TN, United Kingdom
All Rights Reserved: Copyright 2006 - 2017 Compare Money Transfer Limited