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Today's Rates & Market News

Published: 15 Sep 2021

Markets

GBP

The pound is well bid against most majors overnight. The UK’s process of buying military equipment has been hampered by a desire for “110% perfection” but the increasing reliance of weapon systems on electronics and software could help solve the problem, according to Britain’s defence procurement minister. Jeremy Quin said the long-running problem was a result of an attitude in the armed forces that new equipment had to have “every single mod com that is going to be needed in 10 years’ time” in an attempt to ensure it is future-proof. Quin’s remarks underline the UK’s poor record on military procurement, which is littered with projects running late and over budget. The latest is a £5.5bn programme to procure a family of armoured vehicles for the army, known as Ajax, equipped with the latest digital sensors.

 

EUR

The euro is higher than the dollar and lower than the pound in the early morning trade. The leader of Germany’s liberal Free Democrats has set strict conditions for joining a possible coalition with the Social Democrats and Greens after next week’s national election, demanding tax cuts, curbs on new borrowing and a return to pre-pandemic spending rules. “The prerequisite for us joining any coalition is that we can’t have tax increases and we respect the constitutional debt brake,” said Christian Lindner, leader of the FDP. With 11 days to go until an election that will decide who succeeds Angela Merkel as chancellor, polls suggest power could potentially pass from her centre-right CDU/CSU bloc to a three-party coalition made up of the SPD, Greens and FDP.

 

USD

The dollar is weaker than most majors this morning. US consumer prices rose at a more moderate pace in August, in a sign that inflationary pressures associated with the economic reopening from Covid-19 lockdowns are easing slightly after reaching a 13-year high. The consumer price index published by the Bureau of Labor Statistics on Tuesday rose 5.3% in August from a year ago — just below the 5.4% level reported previously, which is the highest since 2008 and in line with the 5.3% forecast by economists. Month-over-month price gains slowed to 0.3% from July. That is markedly lower than the 0.9% jump reported between May and June and a drop-off from the most recent 0.5% rise from June to July.

Ballinger & Co. Morning Report–15th September 2021

 

Today’s Rates

GBP>EUR – 1.1706

GBP>USD – 1.3835

EUR>USD – 1.1818

GBP>CAD – 1.7541

GBP>AUD – 1.8881

GBP>SEK – 11.885

GBP>AED – 5.0795

GBP>HKD – 10.759

GBP>ZAR – 19.786

GBP>CHF – 1.2713

 

  Today’s Calendar           

·       CAD      BoC Consumer Price Index Core (YoY)(Aug)

·       NZD      Gross Domestic Product (YoY)(Q2)

·       NZD      Gross Domestic Product (QoQ)(Q2)

  

Today’s Highlights

·       Forex Today: Dollar shrugs off weak inflation, China worries mount, cryptos rise

·       GBP/USD Forecast: Sterling fails to break higher, fundamentals fight back, levels to watch

·       EUR/GBP remains pressured below 0.8550 ahead of UK critical data

·       USD/CAD: Loonie trades cheap, rallies to 1.28 an opportunity to sell – TDS

 (https://frank-exchange.com/)

 

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

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John Hall

Firm: Frank eXchange
Country: United Kingdom - England - England

Practice Area: Foreign Exchange

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