FX Market Overview

The pressure on Andy Murray is building as he begins his quest for the prize that has eluded British tennis players since the great Fred Perry won Wimbledon in 1934. The amazing thing about Fred is that he is the last Brit to win any tennis grand slam, having won 1 Australian Open title, 3 US Open titles and 1 French Open title to go with his 3 Wimbledon wins.

I do like Fred and his clothing range, but if Andy finally takes the misery off British tennis fan’s faces I can guarantee I will be prepared to pay a large sum for a tight fitting Andy Murray polo shirt as thanks.

It’s already been a busy morning in the markets with the release of three European figures prior to 9:00am giving traders little time to wipe the cornflakes off their chins.

The forward looking German GfK consumer confidence index rose to a 1-year high as consumers feel more confident the worst is over and the economy is stabilising. Results of the Eurozone Purchasing Managers Index or PMI were mixed in June. Eurozone services fell below expectations to 44.5, while the manufacturing component rose to 42.4. Number of new manufacturing orders rose and inventories of stocks held by manufacturers fell to new lows, a healthy sign for factory output however until PMI rises above 50, manufacturing is still in contraction.

The focus in the foreign exchange markets is on the stock markets at present as they are dictating the direction of safe haven flows into the US dollar and Japanese Yen and away from riskier currencies like the South African rand, Kiwi, Canadian and Aussie dollars. This is better news for migrants to these far shores so don’t miss out as the negativity in the stock markets can turn on a dime and today may be no different.

Negative stock markets have also spilled over into commodities which are struggling as fewer and fewer investors believe the economic recovery story. The recovery story also relies on a bounce in Chinese demand for commodity exports and signals are starting to emerge suggesting this demand is waning.

The debate will continue on whether the global economy is showing signs of green roots, green shoots or yellow weeds. The implication for the FX markets is significant so like Marty Feldman, you need to keep one eye on the stock market and the other on the FX market. Easier still, get your Halo Financial dealer to keep two eyes on the two markets for you.

This afternoon the only figure of note left today is US May existing home sales which are expected to improve to 4.80m units from 4.68m in April.

A British Royal Navy captain has banned Brussels sprouts from his warship because he hates them. Commanding Officer Wayne Keble, OBE, of HMS Bulwark, says sprouts are the "devil's vegetable". He denied a rumour he introduced the ban because they make his crew suffer from flatulence.
 
Quotes
 
Ladies, here's a hint. If you're up against a girl with big boobs, bring her to the net and make her hit backhand volleys. That's the hardest shot for the well-endowed. Billie Jean King

But that won't give me a free hand to hold the beer. Billy Carter while being taught the two-handed backhand

It's one-on-one out there, man. There ain't no hiding. I can't pass the ball. Pete Sampras

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