🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Pound, Euro Struggle Vs. Dollar, While DAX Hits Fresh Record High

Published 27/10/2017, 08:35
EUR/USD
-
GBP/USD
-
EUR/GBP
-
UK100
-
FCHI
-
DE40
-
ES35
-

Neither the pound nor the euro was in a good place this Friday, both currencies continuing to shed value against the dollar.

There are myriad reasons for the current forex landscape. The greenback is benefiting from the (gradual) progress of Donald Trump’s tax plans, alongside the relative certainty of a December rate hike from the Federal Reserve. This meant the currency was ready to pounce on the pound and the euro after both were softened up on Thursday.

Sterling’s problems can arguably be traced back to yesterday’s retail sales survey from the CBI, which showed that, in October, high street sales plunged at their fastest rate since 2009 (i.e. the peak of the recession). That wiped out all of cable’s post-UK Q3 GDP reading gains on Thursday, and has sent the pound another half a percent lower this Friday, the currency now desperately trying to keep its head above $1.31.

As for the euro, its losses stem from Thursday’s ECB meeting. Mario Draghi made sure that the central bank’s latest QE taper – cutting the monthly bond buying programme in half to €30 billion – was still read as dovish by stating the timeframe for stimulus was ‘open-ended’. This sent the euro to a 3 week nadir against the dollar, a low that has been further exacerbated by this morning’s 0.3% fall.

Overall the pound seems to be having the worse time of it, not only dropping against the greenback but shedding 0.2% against the euro (admittedly having risen towards €1.13 on Thursday). This meant the FTSE was able to cross 7500 after the bell, having fallen as low as 7425 following Wednesday’s GDP reading.

The DAX, meanwhile, finds itself at a fresh all-time high, surging past 13200 with a half a percent rise; so too the CAC, which rose 0.6% to hit a record peak of 5480. Of the eurozone indices only the Spanish IBEX fell this Friday, and even that has to be put in the context of Thursday’s 2% surge.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.

Original post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.