While sterling hit a two month high to the dollar in yesterday’s early morning trading, it again failed to hold a break above the $1.52 level and saw renewed weakness against the generally stronger euro which continues to correct itself against a number of its counterparts. Although many analysts viewed this as simply a corrective pullback against the majors and positive risk sentiment, the Euro continues to retrace its losses with a test of 1.2700 (High) with the EUR/USD pair.
It is advised however that buyers proceed with caution, as the …

Interest rate decisions from the European Central Bank and the Bank of England headline the economic calendar. While any significant changes in the key elements of monetary policy are unlikely in both cases, the outcomes may still prove to stoke significant volatility around currency markets.
The BOE is expected to deliver the first policy announcement since the government unveiled an ambitious emergency budget that promised to slash the deficit by 6.3 percent of GDP by 2014-15. The central bank’s statement (or lack thereof) will be closely scrutinized for its take on …

The Euro and British Pound are among the global currencies making great strides against the slumping US dollar. One Euro is currently worth $1.2554 after reaching as high as $1.2613 in earlier Friday (July 2) trade, while a British Pound is fetching an even $1.52 after peaking at $1.5234 earlier in the day.

The dollar has quietly slipped against the yen in this week’s currency trade while remaining mostly flat against other major counterparts including the Euro and British Pound. A less than stellar round of economic reports Monday, Tuesday and Wednesday (June 30) morning have cast a dark cloud over optimism for economic recovery.

A slew of mixed economic reports Thursday (June 24) morning reinforced the economic uncertainty of the Federal Reserve’s post-meeting announcements Wednesday in which statements were somewhat pessimistic about the pace of economic recovery.

The Euro appears to be relatively stable this week, with a current rate of $1.2304. It actually reached a Wednesday morning (June 16) high of $1.2355 before receding a bit in the mid morning trade.

With the currenct sharp bounce on the Euro and British Pound we have to now be asking the question, will we get better rates of exchange this year compared these recent low levels? Or is there further weakness to come?