- Chinese intervention levels off share prices
- Canadian industrial production may further weaken CAD
- USD still strengthening on Asian fears and energy price drops
Poor US manufacturing data helped the US Dollar to pause but really hasn't stopped its’ appreciation. The fall in commodity prices and fears over China and the Asian markets are all incentivising the purchase of US Dollars for those seeking safety. Interestingly though, the GBPUSD rate is approaching what I think will be the bottom of the market for now. That is at 1.4550 to 1.46 or thereabouts, and the Euro – USD rate is being supported at $1.08 and has been for the last month. In fact, this has been both a support and a resistance level since last May. The Dollar is though, being supported by comments from the President of the San Francisco fed who said that this year would see a steady campaign of interest rate rises. However, John Williams did throw in the caveats that this depends on job gains, inflation rising and further growth. So nothing we didn't know then.
Sterling continues to look vulnerable but it has stopped falling for now. We will see what happens in today's market where there is very little data of note. From the UK, we get the construction sector Purchasing Managers’ Index and we think that will be quite upbeat. Whether that is enough to boost the Pound is a moot point, especially as we have Eurozone inflation and German unemployment data on its way first thing.
This afternoon brings Canadian industrial production and that has been a poor set of data of late. The Canadian dollar has reacted poorly to the fall in commodity and energy prices which has harmed Canada's income from these crucial exports. In fact, the Sterling – Canadian Dollar exchange rate is back to 2008 levels and that is fantastic news for those importing from or moving to Canada. For further information on emigrating to Canada, why not check out our free guide to emigrating to Canada. Download your free guide here.
And if you thought the number of credit cards in your wallet or purse was too many, bow down and salute Walter Cavanagh. This man has amassed 1,497 credit cards with a combined limit of over £1.1 million pounds. What started as a bet has spiralled to the point where Walter has to keep the bulk of his cards in a safety deposit box because they weigh 17 kg when they are all together. One thing doesn't change though; he still has to pay them off when they have been used.
The front door was being knocked at the Flanagan's house. Mary opened the door to find Sean O'Malley standing there.
"I have some terrible news Mary", said Sean. "Your husband Patrick will not be coming home. He died this morning in a freak accident."
Mary was stunned and started to weep. "What happened?" she said to Sean
"Well he was digging a trench near the O'Shaunessy farm. He had climbed in to check the depth was 8 foot when a tanker from the brewery lost control overturned and filled the trench with Guinness."
There was a long pause during which Mary wailed and wept. Eventually she said, "Oh Sean, please tell me it was all over quickly?"
"Not really", said Sean. "He got out four times to use the portaloo."
FX Research by David Johnson