The euro slid against a well-supported US dollar falling to a three week low of 1.0666 from opening levels of 1.0784, even as data earlier showed that German industrial production rose 0.2% in February against expectations of a 0.1% gain as the production of energy and capital goods increased. Another report showed that German exports rose 1.5% in February, pointing to growth in the region’s largest economy.
Afternoon figures from the US signalled underlying strength in the labour market giving USD a boost in late afternoon trade, Fewer Americans applied for unemployment benefits over the past four weeks than at any time in almost 15 years.
Greece has met the deadline for paying its loan to the International Monetary Fund due in April, a senior finance ministry official said Thursday, as the country's cash reserves continue to dry up. The instalment, which was dueThursday, was worth some €460m. Finance Minister Yanis Varoufakis said that his government would meet "all obligations to all its creditors," in an effort to end speculation. It has another €779m debt repayment due to the IMF on 12th May and later on 20th July, it has to pay €3.5bn euros to the European Central Bank (ECB)
The Australian dollar was steady against its US counterpart on Thursday and traded with strength against GBP, with Australian markets closed for a national holiday. GBP/AUD losing 1.19% in early trade to 1.9168 from an opening high of 1.9396.
The Russian ruble continued its advance in early trade Thursday, hitting levels last seen in late December. The ruble has been in recovery mode for more than two months but its strengthening accelerated recently as demand waned for dollars and euros needed to repay debt. GBP/RUB losing 0.89% on the day to close at 77.51
UK News
Industry data showed yesterday morning that UK house prices rose 0.4% last month, exceeding expectations for a 0.2% gain. Despite this, the pound dropped after data showed the UK trade deficit widened to £10.34 billion in February from £9.17 billion in January and as investors eyed the Bank of England's policy statement due later in the trading session.
Economic data throughout March led few to believe there would be any alterations to the BoE’s monetary policy and the subsequent release at 12.00pm confirmed this with interest rates remaining at 0.5% and the asset purchase facility staying on hold at £375bn.
GBP/USD fell to morning lows of 1.4760 during European morning trade, the pair's lowest since 1st April, the pair consolidated at 1.4784, a 0.56% fall. Following the BoE unchanged rate decision, the pound lost further ground in afternoon trade as positive US jobless claims pushed the pair to the low of 1.4723 last seen 20th March.
Sterling also lost ground against the euro with GBP/EUR falling to 1.3741 from an opening level of 1.3819 following the disappointing UK trade data and positive German imports and exports data. The pair retraced throughout the afternoon to close out at opening levels of 1.3810.
