FXstreet.com (Barcelona) - The two banks have released their trade recommendations for the day. The Copenhagen based bank, Danske Bank, suggests in its daily technical report to "raise buy at 1.5660 for 1.5805 objective, stop 1.5581", while Commerzbank says "attempt longs 1.5600, 1.5550, stop 1.5515. Cover 1.5750."
The UK's CPI will be released today at 8:30 GMT and forecasts point to a YoY increase of 3%. The DCLG housing price index should be announced shortly afterwards and it is expected to reach 0.3% YoY on April. On the other side of the Atlantic, housing starts and building permits in the US will be be due later this afternoon.
The pair is currently trading at 1.5690, rising by 0.15%.
Forex Flash: Sharp decline in bank deposits should diminish - Wells Fargo - NASDAQ
FXstreet.com (Barcelona) - Wells Fargo's John E. Silvia, Chief Economist and Jay H. Bryson, Global Economist's forecasts for Europe are as follows: "We expect that the ECB will reduce its main policy rate by 25 bps in the next month or two, and spreads in Italy and Spain should recede over time as the risk of a near-term Eurozone collapse is diminished (…)"
"These movements will take time but as the risk of Eurozone collapse begin to fall, market distributions of expectations will lead to more moderate yield spreads on sovereign debt. The sharp decline in bank deposits that began in Spain in mid-March should diminish as well as the decline in Greek bank deposits that started in late 2009." They conclude.
Forex: GBP/USD drops to 1.5640 ahead of UK CPI - FXStreet.com
Rate alert: best-buy savings accounts - Daily Telegraph
This is an online account, and no withdrawals are permitted before the bond matures, on June 30 2014. The minimum opening is £1,000 up to a maximum balance of £250,000.
Verdict Anna Bowes of Savings Champion said that for those who can afford to lock their money away for this period of time, this is the most competitive rate. (The previous best buy was BM Savings two-year fixed rate bond at 3.75pc). But she adds that clearly the lack of access may put some savers off. For more slightly more flexible terms and only a fractionally lower rate the AA bond (below) might prove a better alternative for some.
Postal winner
The AA has also improved the terms of its two-year savings bond. It is now paying a rate of 3.7pc – slightly lower than the Nottingham BS, but still an improvement on its previous offer.
However withdrawals are allowed within the term, although savers should be aware they will be hit with a significant penalty if they do need to access their savings (180 days' loss of interest). This is a postal account, and can be opened with just a minimum of £1. The maximum deposit is £5m.
Verdict As a postal account, this will appeal to those who don't have internet access, or prefer to deal with more traditional paper statements. The lower opening balance will mean it will appeal to those who haven't got £1,000 to lock away. Ms Bowes said these fixed-year bonds should only be used by those that are confident they can lock their money away for the full term. However the most flexible terms mean that in a genuine emergency (for example redundancy) it is possible to access these fund, albeit with a hefty penalty.
Rate rise
The Co-operative bank has increased the rates on its one-, two- and three-year fixed-rate bond by up to 0.7pc. But while new customers can take advantage of these new deals, those who have already invested in previous issues won't see any rate rise.
The biggest increase is on the one-year bond, which has risen from 2.5pc to 3.21pc. The two year deal is now paying 3.5pc (previously 3pc) while those who can afford to lock their money away for three years can get a rate of 3.75pc (previously 3.31).
All these bonds can be opened either in a branch, by phone or by post. The minimum deposit is £2,000, and interest is paid on maturity, or savers can opt to get this interest paid into a separate account on a monthly basis. However, not withdrawals of capital are allowed during the term.
Verdict Although the rate rise is to be welcomed, Kevin Mountford, the head of banking at Moneysupermarket.com pointed out that these rates can be bettered on the high street. Those looking for just a one-year account can get a return of 3.45pc from United National Bank, while BM Savings is paying 4pc on its three-year fixed rate account. Both of these savings account are fully covered by the Financial Services Compensation Scheme, although those saving with BM should remember it is part of HBOS so total deposits across the group (Halifax, Bank of Scotland, AA Financial Services, BM Savings, Intelligent Finance and Saga) should not exceed £85,000 for full protection.
However, despite the fact that these rates are market-beaters they remain fairly competitively priced, particularly for a branch-based account, and the option of getting monthly interest paid into a separate account, which can be used to subsidise a pension or day-to-day living expenses, will be appealing for many older savers.
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