All eyes will be on the potential Grexit, and the potential impact of a sovereign state defaulting on their loans and the capital outflows from the region. It is the uncertainty that impacts on the market not the decision, which would give direction to the currency markets. The Bank of England has advised that interest rates will be held longer than initially anticipated to ensure the UK recovery is firmly established. In the US all data is as expected, thus allowing traders to really focus on the Euro situation.
Archive | June, 2015
The Euro continues to be over shadowed by lack of resolution of the Greek problem, and potentially if resolution is found we could see significant gains in this currency. Sterling, after initial rallies against the US$ after the election, has fallen back rapidly to its pre-election level. The CBI is forecasting strong growth in the UK for quarter 2 of 2015, despite the slowdown experienced in quarter one, which might give the pound a boost. The interest rate question is still forefront in the UK, and although not imminent, is getting closer.