26 Nov 2015
EUR and GBP in the highlight - Investec
FXStreet (Delhi) – Research Team at Investec, suggests that there were two main points of interest from yesterday's London session, a sharp Euro fall against a consolidating US Dollar, and a slight lift for the Pound after UK Chancellor Osborne's Autumn Statement and Spending Review.
Key Quotes
“First in the morning, the Euro moved below 1.06 against the US Dollar, helped by the ECB announcing front loaded asset purchases leading to a drop in euro area bond yields; 2year German bund yields hit a record low -0.41%. The single currency lost around a cent in total and continued the recent underlying theme of Euro weakness and of broader USD consolidation. 1.05 looks a key barrier for the pair in front of previous lows in the upper 1.04 handle, with a daily close down there opening up a potential move to parity. For such moves to occur, a lot will depend on the double header next week of the ECB monetary policy meeting and the US Non-Farm Payroll report.”
“Second in the afternoon, the Pound saw some mild strength after UK Chancellor Osborne laid out a financial path for the UK that leads us back into fiscal surplus, with solid GDP projections from the OBR, certain departments seeing protected budgets with 'real terms' increases, and projected lower borrowing costs for the Government going forward.”
Key Quotes
“First in the morning, the Euro moved below 1.06 against the US Dollar, helped by the ECB announcing front loaded asset purchases leading to a drop in euro area bond yields; 2year German bund yields hit a record low -0.41%. The single currency lost around a cent in total and continued the recent underlying theme of Euro weakness and of broader USD consolidation. 1.05 looks a key barrier for the pair in front of previous lows in the upper 1.04 handle, with a daily close down there opening up a potential move to parity. For such moves to occur, a lot will depend on the double header next week of the ECB monetary policy meeting and the US Non-Farm Payroll report.”
“Second in the afternoon, the Pound saw some mild strength after UK Chancellor Osborne laid out a financial path for the UK that leads us back into fiscal surplus, with solid GDP projections from the OBR, certain departments seeing protected budgets with 'real terms' increases, and projected lower borrowing costs for the Government going forward.”