Quiet day in the market. Market primed for fresh sanctions on Russia.

Claire Hogarth22/Jul/2014Currency Updates


London closed with sterling flat against the euro and slipping slightly against the dollar.

Eyes swung to Westminster over lunch, in a speech on the Ukraine conflict David Cameron proclaimed fresh sanctions against Russia and warned the city that effects will surely be felt within the square mile.

Overall this week is unlikely to see any proper shifts in sterling price prior to the release of GDP figures on Friday. As we build towards Friday, sterling will mostly wait on the side-lines playing second fiddle to EUR + USD news.

Odds are a good preliminary GDP figure on Friday should lend sterling support to the upside, any further shifts against the USD will be tricky – it’s worth noting that it was only 2 weeks back that cable futures hit an all-time high.

No data today apart from public borrowing figures.


London closed with the euro flat against sterling and down a touch against the dollar. German PPI was in line with expectations and failed to shift the euro price.

The Banco Espírito Santo situation continues to be closely followed but appears to be slightly better than initially feared; protection from creditors has been pretty much guaranteed giving cover to the many Portuguese retail investors who have exposure to the bank.

No data out of the Eurozone today.


London closed with the dollar ticking up across the board.

The USD has gained from hot money tipping into perceived safe havens over the past fortnight as traders become increasingly concerned over the deteriorating situation in Ukraine and Gaza.

Russian/American relations are in a terrible state with fresh sanctions imposed by both sides. Yesterday Goldman changed Russian stocks from a buy to sell rating; naturally the MICEX had a tough time as did the ruble. Implied short term volatility is called to the downside for the ruble, the market will remain focused on the situation but it appears to be far from over.

US CPI figures and home sales are set for release today.


Written by Claire Hogarth

Marketing Executive at Ebury. English Literature graduate from the University of York and a motivated professional.