Yellen Comments Supports Dollar
In level terms, the EUR/USD pair, which had traded up near $1.13 at one point, fell back to around the mid $1.11 mark. Cable (GBP/ USD) edged down closer towards $1.52. Meanwhile, the EUR/GBP pair was broadly unchanged on the day, trading in the lower half of the 73-74p range.
Janet Yellen comments support Dollar
In overnight moves, some hawkish sounding comments from the Fed Chair, Janet Yellen, have seen the dollar regain the upper hand. She reaffirmed the view that it will still likely be appropriate to start hiking interest rates later this year. She also downplayed the potential impact that uncertainty over developments abroad may have on Fed policy saying it was “not large enough to have a significant effect”.
US Dollar Rates
Today the Dollar trades at €0.89699 which is nearly levels reached on Tuesday. With one dollar you will receive £0.6568 which has risen from £0.64687 at the start of the week.
Italy’s Debt – GDP epidemic
Italy’s Prime Minister, Matteo Renzi is a brave man as he opposes the growth forecasts of the OECD and IMF for 2015. Renzi is predicting growth of 1.6% which he believes would help reduce the debt to GDP figure which is at 132.6%.
Renzi is following his predecessors as he attempts to reduce Italy’s debt levels. While also pressing the EU for more flexibility regarding the budget deficit and cutting tax on first home purchases. Matteo Renzi is facing a vicious cycle of increasing debt which began in late 1940’s. Read more
Euro Rates
The Euro this morning at 10:14 AM Irish time will buy you £0.73264 and $1.11571.
British Government Lloyd’s stake below 12%
This week the British government sold a further lot of shares held in Lloyd’s Banking Group plc just above the threshold at which they were bought. In 2008 bailout, the government assigned a price of 73.6 pence per share. After this weeks sale, the government still holds a staggering 8.55 billion shares. Read more
Brexit can have long term benefits
A study published this outlined that over the long term a Brexit from Europe would benefit as Britain could create further bilateral trade agreements with emerging nations. These agreements would thus makeup of the initial lose in exporting revenue but with a greater potential for growth.
Additionally the report suggested that London one mile financial district could see a drastic benefit from Brexit as it can offering its services to emerging markets. Read more
Great British Pound rates
The Great British Pound this morning will buy $1.5229 which is at the lower end of the past months ranges ($1.51690 - $1.56957) and €1.36504 which is also at the lower range of the past month (€1.35467 - €1.38573).
Today’s Events:
Looking to the day ahead we have: Eurozone M3 money supply (August), final US Q2 GDP and final Michigan consumer sentiment (September).
Stay up to date with the latest exchange rates in real-time on our Live Exchange Rates page or talk to one of our foreign exchange specialists on how we can help protect your business from large fluctuations in the currency markets.