In a turnaround of events, the GBP was reported on 2 July 2013 to have strengthened against the rival Euro after the release of a report that indicated an expansion of the British construction. Analysts also note that the GBP began its comeback against the the Euro following additional signs of economic recovery among which included a report showing growth in the manufacturing sector.
Analysts advise investors to remember that while the UK economy is currently expressing signals of positive movement, it is likely to continue to be a gradual growth process. As such, it is unlikely that there will be significant jumps in the value of the Sterling in the near future. Additionally, the upcoming announcement by the BoE regarding its policy intentions for purchasing of bonds tomorrow 4 July at 1100 UTC is unlikely to cause any major changes in the markets as the current rates are expected to remain constant.
USD Outpaces CAD As US Economy Rebounds
The Canadian dollar is reported on 3 July 2013 to have suffered against the US dollar at the close of yesterday’s trading.
Analysts believe that the drop in value for the CAD in its pairing with the USD comes in reaction to the increased rates of growth by the US economy over the past two to three months, It should also be noted that uncertainty regarding the future of the Keystone pipeline, a potential boon for the Canadian economy, is believed to have played a role in the loonie’s troubles, even as unemployment numbers have dropped.
Analysts assess that traders can expect to see continued growth of the USD against the CAD over the next few months as the US economy continues to expand.
ECB to Announce Decision for Interest Rates
The European Central Bank is expected to declare its intentions on interest rates for the coming month tomorrow at 1145 UTC on Thursday 4 July 2013. Analysts note that at present time, forecasts predict that the current rate of 0.50% are likely to remain constant. This is likely due to concerns by the ECB regarding rates of growth in the Eurozone along with general issues of stability.
While the decision over interest rates is unlikely to have a considerable effect on the trading of the Euro, other factors such as the increased rates of growth in the US and UK are likely to influence its value in trading.