Foreign Exchange Forcast for March 14 2009
USD
The US dollar fell yesterday as the possible bankruptcy of General Motors and upcoming US bank earnings reports weighed on US stocks. “On a day like today, with really no economic news, people are paying a little more attention to U.S. stocks,” Jeff Sakamoto, an interbank trader with Union Bank of California said on Monday. But he said traders were being cautious about taking large positions ahead of the earning reports from US banks today. These reports could be crucial on the view that inventors take and could greatly affect the value of the dollar. If you have an upcoming currency requirement, don’t hesitate to pick up the phone today. At Foreign Currency Direct, our brokers have access to live prices and therefore are able to achieve you the best rates. In the current climate, where we are seeing large daily swings in the currency markets, it is more important than ever to secure the best rate possible. You can even lock your rate for up to two years in advance with our forward contracts. Call us on 0800 328 5884.
Euro
With European markets remaining closed for the Easter holidays, investors showed some signs of risk appetite, reflected in the Euro gaining against most major currencies yesterday. If this risk appetite continues, we could see some of the higher yielding currencies appreciate. What we have found however is that market confidence is as quick to appear as it is to disappear and this writer wouldn’t be surprised if the gains we have seen could be wiped out by a negative news release or a worse than expected data release. It seems negative news releases are appearing left, right and centre for a lot of countries at the moment, with no currency being safe. You can rest assured however that in these troubled times Foreign Currency Direct is on hand to help and by opening an account with us today, you are under no obligation to trade, but do have the ability to secure a rate when the time is right for you.
The Week Ahead
US releases - For those of you that have an interest in the US dollar, there is a fair amount of US data releases in the next few days. Today we have the producer price index and retail sales (excluding the automobile sector) for March at 12:30 GMT as well as a consumer confidence report released later in the day at 21:00 GMT. Tomorrow sees a range of US data releases, namely CPI for March, NY empire state manufacturing index, TIC Flows (shows in and out flows of financial resources in the United States) all released at 12.30 GMT and the Fed’s Beige Book which reports on the current US economic situation released later at 18:00 GMT. Then Thursday we have the year on year housing starts and the Philadelphia Fed’s manufacturing survey.
Eurozone releases - CPI data for March for the Eurozone is released at 09:00 GMT on Thursday, as well as industrial production for February.
Other releases - Swiss producer and import prices data for March is released on Thursday at 07:15 GMT and consumer confidence for Japan and the Bank of Japan’s monthly economic survey released early Friday morning.
As you may know, if the actual values differ from the expected values then expect volatility in the respective currency. Keep in contact with our dealer team; Call us today on +44 1480.458400
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