Sterling finds its feet

The Federal Reserve’s dovish stance was confirmed in their meeting minutes. That came as no surprise, but it did stem the tide of strength in the US Dollar. The Sterling – US Dollar rate has had a turbulent week, testing $1.39 on Monday and dropping to nearly $1.37 yesterday. It sits at USD 1.3727 this morning after a healthy rise in the RICS house price index. In that, a balance of 59% of surveyors saw house price rises in the UK in March.

USD direction hinges on employment report and Fed Talk

We will get the UK construction sector PMI later this morning and the US jobless claims numbers this afternoon, so the volatility isn’t over.

The other big mover of the week has been the GBPEUR exchange rate. The Pound’s weakness against the EUR was testing EUR 1.18 on Monday before tumbling to EUR 1.1540 yesterday. There has been a little correction this morning, following the RICS report, and I can see EUR 1.1587 on-screen as I write. German factory orders grew as expected; 1.2% on the month in February. We will see the German construction sector PMI this morning, and that is forecast to be positive. We are also awaiting the ECB’s monetary Policy Statement at 12.30GMT, so it could be a lively day for this pair. The upper and lower levels mentioned above create the new range to watch.

Dollar rally runs out of steam

That US Dollar correction also manifested itself in a spike in the EURUSD rate to $1.1915 yesterday, the highest level since 23rd March. The rate is half a cent down on that this morning after some profit-taking, but there appears to be some upward momentum, so don’t be surprised if we see another crack at that 16 day high.

And on this day in 1820, a peasant on the island of Milos, found her in the ancient ruins of Milos town. Finding her is clever but who could lose a 6ft 7 inch white statue. That takes some doing.

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