Eurozone “flash” HICP was up 0.3% to 4.0% in June. This fuelled speculation of a rate hike and the euro remains firm ahead of the week’s announcement. The post meeting conference should continue to support the common currency and point to rising inflationary pressure due to on going strength in commodities and high energy costs.

 The dollar is still under pressure after Friday’s poor data. The market will be edgy in anticipation of this month’s non- farm payrolls. The headline number is expected slightly worse than last month at -55k vs. -49k previous. However, some analysts are expecting an above consensus of about -30k. This should help the dollar given the losses it has seen in the last two days.    

 UK nationwide housing prices fell 6.3% yr/yr against 6.4% expected. This offered little support on the open but the euro remains the dominant force. 

Today will focus on manufacturing data from the US, UK and E15. 

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 Please feel free to contact me (jeremy.cook@worldfirst.com) if you have any questions or thoughts regarding these updates or if you are interested in a particular event in the calendar. If you would like to discuss your foreign exchange requirements, please contact our:Corporate Foreign Exchange Team on 020 7801 9050 or our Private Client Currency Exchange Team on 020 7801 9080.   

Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms.