Important Notice:
The Pound has hit its highest level against the US dollar
since August 2009. If you would like to get a live quote please call the
dealing desk.

GBP
Sterling gained some strength yesterday as Senior Bank of England officials
lined up to suggest that the interest rate hike is going to come sooner

Important Notice:
The Pound has hit its highest level against the US dollar
since August 2009. If you would like to get a live quote please call the
dealing desk.

GBP
Sterling gained some strength yesterday as Senior Bank of England officials
lined up to suggest that the interest rate hike is going to come sooner
than expected. This is attributed to the fast economic growth and sharp drops
in the unemployment rate for the UK, despite the low inflation that we are
experiencing.  

Traders will be trading the fundamentals in such an uncertain international
market, so expect flow into GBP and to see a slight strengthening in the
currency. Currently we are trading at levels not seen since April 2009.

The strong pound should also keep inflation lower as imports will be relatively
cheaper. 
 
USD
The USD slid to its weakest this month against all major peers as the Fed
signalled that they are ready to keep interest rate near Zero as the Central
bank ends its bond purchases, this has seen a dampening demand for the US
currency. The decision to seize interest rates near zero, was made due to the
fact the US economy remains relatively weak.
 
EUR
With Euro-zone construction output beating forecast, hitting 8%, a whole 3%
improvement on last year’s figures we saw the Euro gain throughout trading.
Despite the good news from the euro-zone it was only able to claw back a minor
amount of the ground lost. The outlook for the Euro remains weak given record
low interest rates and low inflation.
 
Today
Overnight there was strong GDP growth  in New Zealand with he
economy growing 3.8% in the first quarter of 2014. This was largely due to
strong construction figures for the  rebuild in Christchurch
after the 2011 earthquake.
. 
We have UK retail sales released at 09.30 expected  to come in slightly
lower than last month. Later in the afternoon we have Jobless claims in the US
expected to show some improvement from last month.

Key Announcements:
09.30 – Retail Sales Figures  for may expected to contract to -.5%
13.30 – USD Continuing jobless claims expected to fall 14,000 
13.30 – USD Initial jobless claims expected to fall to 314,000

Our dealers are available via e-mail ([email protected]) or by phone (020 3051 1226).