Pound to euro just can't get back to that special place as we head for a second consecutive weekly decline
- Details
- Category: Exchange Rates
- Published on Friday, 03 August 2012 12:00
- Written by Will Peters
Economists are targeting an increase of 100,000 jobs on last month. The unemployment rate is expected to remain unchanged at 8.2 pct.
Bad news for the pound euro exchange rate - unless we witness an olympian-style comeback we are looking at a second consecutive week of declines.
The pound to euro exchange rate is 0.33 pct in the red at 12697 at 12:47 AM in London. However, the pound to dollar exchange rate is seeing some relief, advancing 0.33 pct to reach 1.5564.
Today the euro is finding the positive market vibe to its liking - the ultimate expression of this positivity has been expressed via the yield on the Spanish 10-year government bond which is dropping back from this morning's highs.
The yield on the Italian 10-year is at 6.17 pct.
It appears that a catalyst for this morning's positivity came from news that retail sales in the eurozone rose 0.1 pct in June, after a 0.8 pct rise in May. Economists had wildly differing forecasts of what would happen, from a 0.3 pct increase to a 0.8 pct fall, with a consensus that sales would remain flat.
No doubt the positive news would have triggered some position covering - investors reducing their short-euro positions which ultimately assists the euro higher.
Looking ahead we have the non-farm payrolls out of the US, but some question how important these figures will ultimately be.
"Despite this week’s coordinated central bank inaction, the markets are in more constructive mood again so far today. We’ll see how long that lasts but if there is disappointment, it will probably be related to Europe, rather than the US data," says Shaun Osborne at TD Securities.
Economists are targeting an increase of 100,000 jobs on last month. The unemployment rate is expected to remain unchanged at 8.2 pct.
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