We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.

August 2015

Daily Currency Insight

Published: Thursday 27 August 2015

I found myself wishing a car had been stolen this morning and that's a first. The car in question cut me up quite dangerously and then, for the next 5 miles, was in the wrong lane, indicated when there was no need, changed lanes without any indication, did at least 60mph in a 30 zone before getting stuck at the next queue and then, the moment when I hoped it was stolen arrived as I drew up alongside him at a roundabout and the big sign on the side of the car read 'Advanced Driving Instruction'. OMG is an acronym made for such occasions.

But I made it to the office in one piece and have decided not to get advanced driving training just in case I have completely misunderstood the nature of that training. The markets are still here but there is some odd trading going on. There must be a punny link I could add there; 'training and trading' but it is just too early for that kind of thinking.

Aaaanyway, China's impact on the world is still playing out. A bounce of 4% didn't do much to offset recent falls in the Chinese stock market but it did allay some fears. Markets around the world are dancing like marionettes to the tune of Chinese share changes and the announcements from the People's Bank of China.  We saw the US markets gain at their fastest pace in 4 years yesterday but they had suffered significant losses in the previous few days so some level of recovery was inevitable.

There was a smattering of other data though; UK house prices are rising at the slowest pace since June 2013. That is weakening the Pound which has surrendered the gains it made on Monday to a large degree. The lack of UK data today is likely to leave the Pound vulnerable to further correction, so please beware.  Tomorrow brings the 2nd estimate of UK economic growth and, given the recent upward revisions in forecasts by the CBI and others, there is plenty of room for improvement on that 1st estimate of an annualise 2.6%. Sterling buyers might have a very helpful window of opportunity between now and then.

The most significant data yesterday and today is American in nature. US durable goods orders surged last month and that really did take traders by surprise. It also prompted the bounce in the US share market. US GDP growth data, due for release at 12.30GMT, is expected to show a very substantial upward revision, so there is plenty of scope for USD strength in later trade if those forecasts are accurate.

And the Metro is running a picture of a sign at an Indian airport which has been handily translated into English as 'Eating Carpet Strictly Prohibited. One of the great joys of travelling is to see transactions into English done with such aplomb. I have seen a menu offering Beings on Toast before and have been asked not to 'wash my children in the toilet' although I have no idea what that really meant. We'd love to hear your examples of odd translation.