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Forex News from AC Markets
After adding a further 50 billion GBP quantitative easing by the BOE the main focus of yesterday was the sell off in sterling across the board as the market looked as this as a negative for the currency. New York trading was subdued ahead of today’s NFP data which will give further direction for the currency. We did not expect major changes in yesterday's ECBs rate decision, and so it proved to be. The Governing Council does not yet seem ready to buy wholesale into our view that there will be positive euro area growth during H209: Mr Trichet several times warned that the stance should be one of "prudence and caution", not least since the data flow could be volatile and since there was concern that the pace of unemployment increases may remain high and thereby affect the chance of recovery. A fairly quiet session flow wise for the currencies a few buyers taking profits in EUR/USD and GBP/USD at the Tokyo open. Offers are now seen in GBP/USD just above 1.6800 and in EUR/USD ahead of 1.4400. AUD/USD rose on the back of hawkish statements from the RBA to a high of 0.8423 hitting a session low at 0.8367. USD/JPY was a non event with no real activity and fairly directionless. Main focus today will be the July US Non-Farm Payrolls data and US Unemployment Rate.
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