UK pound falls against then dollar

Pound Falls Against the Dollar

The pound has fallen to a two week low against the United States dollar, and the GBP/USD relationship is currently $1.44, only 24 hours after reaching $1.452.

Fears over an vote to leave the European Union (EU) has not helped the cause of sterling, latest polls have indicated that the EU referendum will be a close call.

A YouGov opinion poll for ITV television, revealed that the “In” campaign leading by 42% to 40% for the “Out” camp, but the tight opinion polling has left traders anxious over the future of the UK economy.

On Thursday this week, the Ban of England will reveal in a statement their latest decision over interest rates, there is not expected to be any change over the 0.5% rate, and the amount of quantitative easing, with the current allocation £375 billion.

Influential building society the Halifax group, has revealed in a study that house prices have eased in the UK, with growth slowing to 9.2% in April  from  10.1% in March.

House prices last month actually declined month on month according to the group, falling by 0.8% when compared to March.

March was a positive month for house sales, as a record 165,400 properties were sold ahead of changes to the tax system, according to the HM Revenue and Customs department.

Monex Europe in the daily report said that sterling was on a steady downwards path last week, and has opened this morning in a similar vein, weakening further to USD and EUR.

They also pointed to Prime Minister David Cameron on the news wires this morning, reinforcing the government’s argument against Brexit. He also is  backing up comments from Chancellor George Osborne over the weekend,  that house prices would be adversely affected by Britain leaving the European Union.

The EUR/USD rate is stable, with the euro now buying $1.14, the euro has been forced back by the dollar over the past two weeks, the greenback has been boosted by the 160,000 increase in non farm payrolls, released last Friday.

Manufacturing Orders Up in Germany

New orders in manufacturing in Germany has risen by a month on month 1.9% in March compared to February.

This was an increase from the monthly figures for February from January, where the escalation of orders was 0.8%.

Price-adjusted new orders, without major orders in manufacturing had decreased in March 2016, a seasonally and working-day adjusted 0.6% on February 2016.

Domestic orders in March decreased by 1.2%, but the volume of foreign trade eclipsed any losses, as it rose by 4.3% month on month. For consumer goods, an increase in new orders of 1.6% was recorded.

Meanwhile in Spain, the annual rate of the industrial production Index stands at 2.8% in the series adjusted for the seasonal and calendar effects, and at minus 1.7% in the original series.

Euro Area Meeting Today

Greece President Alex Tsipras has said that today’s meeting of euro area finance ministers is a very important one for Greece, as the nations’ debt relief was on the agenda.

There does not appear to be many options on the table though for Greece, as they have already been given a lengthy period of time to pay off their debts, in a low interest rate environment.