International Foreign Exchange – Market Report for April
GBP USD advanced to an overnight high of 1.5936 as market participants increased their appetite for risk. A reversal on recent downward trends could be imminent if sterling can break and close above 1.6065 this week.
On a trade-weighted index, the pound rose as high as 82.3, its strongest since mid-February 2011, before easing to 82.2. If it rises to 82.4, the index would have risen to its highest level since August 2010.
GBPEUR traded as low as 1.2099 yesterday but found strong support around 1.21 and this morning has already found a new high of 1.2152. This is now less than 0.2% away from a three-month high.
The UK Goods Trade deficit widened to £8.772bn in February from £7.883bn in January after analysts expected the deficit to narrow to £7.700bn.
EURUSD advanced to a week high of 1.3156 as European Central Bank board member Benoit Coeure floated the idea of resuming the bond purchase program. He also suggested that the high sovereign borrowing costs for Spain do not reflect the fundamentals of its economy.
Yesterday, during the German bund auction, EURUSD fell to a low of 1.3090 before immediately rebounding to the day’s high of 1.3153.
The number of mortgage applications filed in the US last week fell 2.4% from the prior week even as interest rates slid across the board.
US import prices climbed by 1.3% from the month before. It was the largest monthly gain since April 2011.
The US economic recovery continues to gain momentum according to the Federal Reserve’s latest Beige Book released yesterday. The report said the economy grew in all twelve of its regions as manufacturing, employment and retail sales showed signs of strength despite higher fuel prices.
The US dollar still weakened against the majority of its peers though after Federal Reserve Vice Chairman Janet Yellen endorsed the central bank’s “highly accommodative” policy.
More Australian jobs were added in March than expected, with the unemployment rate kept steady, taking the heat out of calls for deep cuts to interest rates but not ruling out a May cut entirely.
The yen extended declines to a second day against all of its 16 major counterparts after Bank of Japan Governor Masaaki Shirakawa said he will continue pursuing monetary easing.
Thinking of buying a house somewhere in Florida?
Request more information on Florida homes or submit a Custom Property Search Request
The BRITISH HOMES GROUP Florida
2960 Vineland Road | Info@britishhomesgroup.com or (+1) 407 396 9914