Sterling/Dollar Pair Sees Huge Swing After Carney's Forward Guidance

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Financial Spreads: Spread Betting and CFD Trading

Forex Trading

: 09 August 2013

The euro continues to edge higher against the dollar, just as it has done for the last month.

German export data provided the main fuel for the rise by beating expectations and so the pair gained 0.4% to $1.3393.

Forex Trading

: 08 August 2013

The euro edged higher against the dollar on Wednesday, closing at $1.3335, in what was a fairly uneventful day for the currency pair.

Attention was diverted by a 300 point swing in the sterling/dollar pair, which had a very strong day following the statement by Mark Carney from the Bank of England.

Forex Trading

: 07 August 2013

The euro continued on its surge against the dollar on Tuesday as better-than-expected German factory orders provided the impetus.

In addition, a comment from the International Monetary Fund, which revised growth forecasts for the German economy, added to the rally.

As a result, the currency spread trading pair closed up nearly 50 points at $1.3305.

Forex Trading

: 06 August 2013

With data thin on the ground, EUR/USD volatility was fairly low on Monday.

The better-than-expected US data strengthened the dollar on expectations that Fed stimulus would reduce sooner than planned.

As a result, the currency pair fell 25 points to end up at $1.3255.

Forex Trading

: 05 August 2013

Friday's poor US jobs data weakened the dollar against the euro, with the pair falling by around 75 points to $1.3275.

Despite a wealth of opinions over how the number might affect QE tapering, it seems that there was little other news to move the currency pair.

Forex Trading

: 02 August 2013

European Central Bank President Mario Draghi said that the worst may be behind us but pledged to keep the interest rate unchanged at a record low of 0.5%.

At the same time, ECB monetary policy will stay accommodative as long as the risk continues to be on the downside.

Investors weighed his comments and decided that the dollar is the safer option for now, sending the EUR/USD pair 92 points lower to $1.3207.

Forex Trading

: 01 August 2013

Amid ongoing signs that the European economy is finally emerging from a nasty recession, the Eurozone unemployment rate remained unchanged at 12.1%.

At the same time, inflation held steady at 1.6% after accelerating in the previous month.

Investors found some encouragement in the data and pushed the euro 37 points higher against the dollar to $1.3301.

Later today, the ECB is anticipated to keep its benchmark rate unchanged at 0.5%.

Forex Trading

: 31 July 2013

Sitting on the sidelines or booking profits/losses very quickly seems to have been the name of the game during the last few sessions.

Almost mirroring the display in US equities, the EUR/USD pair closed unchanged at $1.3262 after swinging within a tight intraday range.

A European report indicated that economic confidence in the region improved for the third consecutive month in July.

This demonstrates that signs of recovery are ongoing but the issue of addressing the unemployment rate remains a challenge.

Forex Trading

: 30 July 2013

Ahead of the Federal Reserve Open Market Committee meeting starting later today, we have seen a slight drop in the EUR/USD pair. The pair dropped 16 points to $1.3262.

It could imply the market expects US officials to reiterate their tapering plans if the economy keeps improving.

With the European Central Bank also set to reveal its hand a day later, investors should have plenty of extra clues by the weekend.

Forex Trading

: 29 July 2013

The euro held onto its gains made earlier in the week against the dollar, closing at $1.3280 in a rather tight daily range.

Although the Fed looks set to start tapering before the ECB, given that the US recovery is well ahead of the Eurozone's, there is also some concern that the currency market has gotten ahead of itself.

Therefore, any sign that the stimulus will be maintained is being seen as dollar negative.

By Jonathan Sudaria, 9 August 2013

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