A 3 month low on the Oil markets and increased optimism over the prospects of the US economy saw the dollar strengthen against its major crosses. Oil fell off its highs amid comments from BP CEO Tony Hayward that the demand for petrol in developed economies was down as consumers cut expenditure and resorted to more cost effective means of transportation. Yesterday’s US Consumer Confidence was also stronger than expected; the measure published at 51.9 against a consensus view of 51.0.

Sterling was done no favours by the latest publication of Bank of England mortgage approvals. The figure, already resting at an all-time low, fell further pointing towards further sharp falls in house prices over the coming months. Talk of a recession has increased as a result. Sterling was able to secure gains against the euro however.

Today is another data filled day with highlights from both the US and EU. Mortgage applications stateside are expected to go the way ours did yesterday while the ADP employment change release will be invaluable as to gaining an insight into the US jobs market and as an indication of where Friday’s volatile Non-Farms number will land. Consumer confidence from the EU, due at 10.00, will follow the recent trend and fall we believe.

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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.