The Australian dollar started the week on a strong note, with an upbeat market mood supporting the risk-sensitive ‘Aussie’. Recent strong data from China also gave AUD a boost, as the ‘Aussie’ often trades as a proxy for the Chinese economy.
The euro weakened towards the end of the week, however, after European Central Bank (ECB) President Mario Draghi commented that interest rates need to remain low despite the Eurozone’s fairly steady economic recovery.
It appears the ECB won’t make any changes to policy in the near future despite rising consumer price pressures. Last week’s reports showed that German inflation stagnated on the month (not a great result, but better than the -0.1% decline predicted) while year-on-year price growth hit 2%, above the ECB’s target range. Eurozone inflation rose from 1.5% to 1.9%, beating forecasts by 0.1%, while core price growth climbed from 0.8% to 1.2%.
The second and final round of the French Presidential Election takes place this Sunday, so shifts in EUR exchange rates are likely to be the result of poll results ahead of the ballot. Further suggestions Macron will enjoy a strong majority will likely strengthen the euro, but any indication that Le Pen’s popularity is rising may send the common currency reeling.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)