The euro has continued to strengthen over night against sterling and the US dollar ahead of tomorrow’s interest rate decision. The 25bps hike is completely priced in as of this morning but euro could strengthen further should the post decision press conference be hawkish and if further rate increases are alluded to.

The dollar was hurt yesterday despite a strong manufacturing ISM reading. High oil prices alongside the view that the US economy is just too risky for substantial inward investment. Such is the outcry over fuel prices in the US that promotional giveaways on US television no longer promise a new car or a holiday for you and the kids but $1000 worth of petrol. US data watchers should be mindful of today’s ADP employment figure which should prove to narrow expectations of tomorrow’s Non-Farm Payrolls report.

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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.

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