The Pound finished yesterday a touch lower against the Euro, and marginally higher against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate fell from the mornings open at 1.1663, to trade at 1.1656 by the UK market close. The GBP/USD exchange rate though closed at 1.6077; higher than the open at 1.6062, with the rate also breaking 1.6100 during mid-afternoon. Economic data released from the UK yesterday showed that industrial production rose annually, but fell monthly for September, and manufacturing production showed a positive increase both annually and month-on-month. The latest NIESR GDP estimate for October produced a reading of 0.5%, which was exactly in line with the market forecast, and is exactly the same as the last quarter’s actual reading.
This morning will see the UK’s visible trade balance numbers cross the wires, with the expectation to see a further increase in the UK’s trade deficit, highlighting a lack of export activity despite the fact that the Pound is still quite weak overall.
The Euro closed higher against the Pound and the US Dollar in the currency exchange market yesterday; this was despite the news that Italian Prime Minister Silvio Berlusconi is set to step down after losing a vote of confidence, and that bond yields in Italy are reaching dangerous levels. The EUR/USD exchange rate closed higher on the day, up from the morning’s open at 1.3770, closing at 1.3792. There was some positive news from the Euro-zone; with Germany’s trade balance showing a further increase in the nation’s trade surplus, up from €11.8billion to €17.4billion.
There are no significant data events scheduled for the Euro-zone today; but the market will be watching closely for any comment or developments in regards to Greece and Italy, which could well give the Euro currency some direction.
The US Dollar lost some ground versus the Pound and the Euro yesterday. Despite the increasing turmoil in Europe, the currency has been steadily reversing last week’s gains. There was no significant data released form the US yesterday, with market movements being attributed to shifts in risk sentiment.
Today will see Federal Reserve Chairman Ben Bernanke speak at a Fed conference on small business. The market will watch closely for any indication from the central bank chief in regards to business conditions, and also credit conditions for companies.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
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Wednesday 9 November 2011
Tuesday 8 November 2011
Foreign Exchange Daily Market Update 08/11/11
The Pound finished yesterday slightly lower against the Euro but a touch higher versus the US Dollar in the foreign exchange market. The GBP/EUR exchange rate fell from the morning’s open at 1.1669 to trade at 1.1655 by the close of the UK business day, with the GBP/USD exchange rate opening at 1.6003, and closing at 1.6022 following some choppy trading. There was no economic data of not released form the UK yesterday.
This morning will see the release of September’s industrial and manufacturing production figures, with the market forecast for an annual increase in manufacturing production, but industrial production is forecast to fall both annually and monthly. Later on today will also see the latest NIESR GDP estimate for October cross the wires. Any sharp downward revision could be damaging for the Pound, but considering the Bank of England’s addition of an extra £75billion towards monetary stimulus, the likelihood is for a reading around 0.50%, which should be positive for the market.
The Euro gained a touch against the Pound and the US Dollar yesterday in the currency exchange market, with the EUR/USD exchange rate rising throughout the day, up to 1.3745 at the day’s close, from the morning’s open at 1.3714. Economic data released from the Euro-zone yesterday was largely disappointing though. Euro-zone Sentix investor confidence fell for November, from -18.5 to -21.2, with Euro-zone retail sales also falling; both annually and month-on month, from -0.1% to -1.5% and from 0.1% to -0.7% respectively. German industrial production figures also showed a sharp decline for the month of September, dropping from -0.4% to -2.7% annually.
This morning has already seen some positive data from Europe, with the German trade balance showing an increase in the nations trade surplus from €11.8billion to €17.4billion, which is beneficial for the country, and may be one positive result of a weakening Euro currency, which enables other countries to buy goods from the nation at a cheaper price.
The US Dollar fell against the Euro and the Pound yesterday, losing some of the previous weeks gains based on shifts in risk sentiment. The overall outlook for the US is not great, with the Federal Reserve clearly worried about the possible effect of European default on its own shores. There has been a small improvement in the labour market over the past month, and figures released yesterday showed that consumer credit increased for the month of September, which should see more money flowing through the economy.
There are no significant figures set for release from the US today, so movements will come from shifts in risk sentiment, and possible unfolding of the situation in Europe. There has been talk of an expansion to the EFSF in the coming days, and also there are rumours of Italian PM Silvio Berlusconi stepping down. There is also set to be an announcement made very soon on Greece’s new Prime Minister, and then there will be further discussion to try and resolve the funding situation for the country before it runs out of cash.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning will see the release of September’s industrial and manufacturing production figures, with the market forecast for an annual increase in manufacturing production, but industrial production is forecast to fall both annually and monthly. Later on today will also see the latest NIESR GDP estimate for October cross the wires. Any sharp downward revision could be damaging for the Pound, but considering the Bank of England’s addition of an extra £75billion towards monetary stimulus, the likelihood is for a reading around 0.50%, which should be positive for the market.
The Euro gained a touch against the Pound and the US Dollar yesterday in the currency exchange market, with the EUR/USD exchange rate rising throughout the day, up to 1.3745 at the day’s close, from the morning’s open at 1.3714. Economic data released from the Euro-zone yesterday was largely disappointing though. Euro-zone Sentix investor confidence fell for November, from -18.5 to -21.2, with Euro-zone retail sales also falling; both annually and month-on month, from -0.1% to -1.5% and from 0.1% to -0.7% respectively. German industrial production figures also showed a sharp decline for the month of September, dropping from -0.4% to -2.7% annually.
This morning has already seen some positive data from Europe, with the German trade balance showing an increase in the nations trade surplus from €11.8billion to €17.4billion, which is beneficial for the country, and may be one positive result of a weakening Euro currency, which enables other countries to buy goods from the nation at a cheaper price.
The US Dollar fell against the Euro and the Pound yesterday, losing some of the previous weeks gains based on shifts in risk sentiment. The overall outlook for the US is not great, with the Federal Reserve clearly worried about the possible effect of European default on its own shores. There has been a small improvement in the labour market over the past month, and figures released yesterday showed that consumer credit increased for the month of September, which should see more money flowing through the economy.
There are no significant figures set for release from the US today, so movements will come from shifts in risk sentiment, and possible unfolding of the situation in Europe. There has been talk of an expansion to the EFSF in the coming days, and also there are rumours of Italian PM Silvio Berlusconi stepping down. There is also set to be an announcement made very soon on Greece’s new Prime Minister, and then there will be further discussion to try and resolve the funding situation for the country before it runs out of cash.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Monday 7 November 2011
Foreign Exchange Daily Market Update 07/11/11
The Pound closed out last week much higher against the Euro, but barely unchanged against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate which opened on Monday at 1.1353 rose steadily throughout the week to close on Friday up at 1.1641. The GBP/USD exchange rate however, following some very choppy trading; opened the week at 1.6088 and after some rangy movements closed slightly lower at 1.6050. The big economic news for the week from the UK was the reading of 3rd quarter GDP, which showed that the UK economy grew at a rate of 0.5% through the 3rd quarter, a sharp advance from the previous quarter. The annual growth rate was also recorded at 0.5%, which was positive considering the market expectation was for levels at around 0.3%.
The week ahead will see some high-level market data, particularly Thursday’s Bank of England interest rate decision. Despite the ECB making a surprise rate-cut last week, there is no expectation for the UK to follow suit. Following the addition of an extra £75billion in monetary stimulus it will be interesting to see if there is any change of rhetoric from the MPC, but it is more than likely that market participants will have to wait for the release of the meeting’s minutes to gain any in-depth understanding of views and policy over the coming months. Aside from the rate meeting, Tuesday’s NIESR GDP estimate for October will be closely watched by the market for future growth expectations, along with industrial and manufacturing production numbers that are set for release on the same day. Wednesday’s trade balance numbers are more than likely to show the continual increase in the UK’s negative trade deficit, despite a previous months increase in export activity.
The Euro suffered heavily against both the Pound and the US Dollar across the past week in the currency exchange market. The EUR/USD exchange rate fell from 1.4170 at the week’s open, to trade down at 1.3786 by the week’s close. The currency was not helped by indecision and turmoil within the Euro-zone, focused heavily on the drawn-out decision of EU leaders in regards to a solution to the Greek bail-out situation. With Greek Prime Minister George Papandreou narrowly surviving a vote of confidence following a turbulent week fro the country, it was announced that he has now stepped down, and a unity government will be formed. It is crucial for any confidence in the Euro to remain that a structured plan is put in place to prevent the nation defaulting. Aside from the Greek debt situation, at his first European Central Bank rate decision as President, Mario Draghi confirmed the decision by the central bank to reduce the base interest rate in the Euro-zone from 1.50% to 1.25% citing deteriorating conditions across the euro-economy and the possibility of recession.
The week ahead has started with rumors that Italian President Silvio Berlusconi may be set to step-down; with his country deep in recession, and further austerity measure to be implemented, his leadership has been heavily called into question over the past few weeks. Political unrest may serve to undermine the currency further, so the Euro will face a tough week. Economic data set for release this week will include Tuesday’s German trade balance numbers; which will be watched closely to ensure that German exports are still thriving, which is key to growth in the country. Thursday will be a potential market-moving day, with the release of November’s ECB monthly report; which is sure to spark interest in the central bank’s outlook for growth and lending conditions. Also there may be comment passed on the involvement of the ECB in regards to bank-funding and also sovereign bond purchasing. German CPI (inflation) figures will also cross the wires on Thursday, with the market forecast for price-growth to hold steady – any increase would be worrying for the ECB, especially considering the reduction in the base interest rate this month.
The US Dollar benefitted from its ‘safe-haven’ currency status again last week, gaining rapidly against the Euro, and also pulling back slightly versus the Pound. Despite the Federal Reserve holding the base interest rate at their latest meeting, Fed Chairman Ben Bernanke’s post-decision press conference cast some gloom on the market, confirming that the outlook for economic growth has slowed rapidly, and that the European debt crisis is weighing heavily on the US’s prospects, with the ‘significant downside risks’ to economic growth. Bernanke stated "Unfortunately we can't disassociate ourselves from Europe," he said. "The things that happen there do affect us." There was some slightly positive news form the US last week, with the overall unemployment rate falling to 9.0% down from 9.1% following an upward revision to the previous month’s non-farm payroll numbers.
This week will see Fed Chairman Ben Bernanke speaking at the Fed Conference on small business this week, with the market sure to take any comments from the Chairman in regards to business conditions as direction from the central bank. The currency may well again benefit from shifts in risk sentiment, as the ongoing issues in Europe increase. Towards the end of the week the US Dollar may take direction from Thursday’s trade balance numbers, and Friday’s market-moving University of Michigan confidence index numbers.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The week ahead will see some high-level market data, particularly Thursday’s Bank of England interest rate decision. Despite the ECB making a surprise rate-cut last week, there is no expectation for the UK to follow suit. Following the addition of an extra £75billion in monetary stimulus it will be interesting to see if there is any change of rhetoric from the MPC, but it is more than likely that market participants will have to wait for the release of the meeting’s minutes to gain any in-depth understanding of views and policy over the coming months. Aside from the rate meeting, Tuesday’s NIESR GDP estimate for October will be closely watched by the market for future growth expectations, along with industrial and manufacturing production numbers that are set for release on the same day. Wednesday’s trade balance numbers are more than likely to show the continual increase in the UK’s negative trade deficit, despite a previous months increase in export activity.
The Euro suffered heavily against both the Pound and the US Dollar across the past week in the currency exchange market. The EUR/USD exchange rate fell from 1.4170 at the week’s open, to trade down at 1.3786 by the week’s close. The currency was not helped by indecision and turmoil within the Euro-zone, focused heavily on the drawn-out decision of EU leaders in regards to a solution to the Greek bail-out situation. With Greek Prime Minister George Papandreou narrowly surviving a vote of confidence following a turbulent week fro the country, it was announced that he has now stepped down, and a unity government will be formed. It is crucial for any confidence in the Euro to remain that a structured plan is put in place to prevent the nation defaulting. Aside from the Greek debt situation, at his first European Central Bank rate decision as President, Mario Draghi confirmed the decision by the central bank to reduce the base interest rate in the Euro-zone from 1.50% to 1.25% citing deteriorating conditions across the euro-economy and the possibility of recession.
The week ahead has started with rumors that Italian President Silvio Berlusconi may be set to step-down; with his country deep in recession, and further austerity measure to be implemented, his leadership has been heavily called into question over the past few weeks. Political unrest may serve to undermine the currency further, so the Euro will face a tough week. Economic data set for release this week will include Tuesday’s German trade balance numbers; which will be watched closely to ensure that German exports are still thriving, which is key to growth in the country. Thursday will be a potential market-moving day, with the release of November’s ECB monthly report; which is sure to spark interest in the central bank’s outlook for growth and lending conditions. Also there may be comment passed on the involvement of the ECB in regards to bank-funding and also sovereign bond purchasing. German CPI (inflation) figures will also cross the wires on Thursday, with the market forecast for price-growth to hold steady – any increase would be worrying for the ECB, especially considering the reduction in the base interest rate this month.
The US Dollar benefitted from its ‘safe-haven’ currency status again last week, gaining rapidly against the Euro, and also pulling back slightly versus the Pound. Despite the Federal Reserve holding the base interest rate at their latest meeting, Fed Chairman Ben Bernanke’s post-decision press conference cast some gloom on the market, confirming that the outlook for economic growth has slowed rapidly, and that the European debt crisis is weighing heavily on the US’s prospects, with the ‘significant downside risks’ to economic growth. Bernanke stated "Unfortunately we can't disassociate ourselves from Europe," he said. "The things that happen there do affect us." There was some slightly positive news form the US last week, with the overall unemployment rate falling to 9.0% down from 9.1% following an upward revision to the previous month’s non-farm payroll numbers.
This week will see Fed Chairman Ben Bernanke speaking at the Fed Conference on small business this week, with the market sure to take any comments from the Chairman in regards to business conditions as direction from the central bank. The currency may well again benefit from shifts in risk sentiment, as the ongoing issues in Europe increase. Towards the end of the week the US Dollar may take direction from Thursday’s trade balance numbers, and Friday’s market-moving University of Michigan confidence index numbers.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Thursday 27 October 2011
Foreign Exchange Daily Market Update 27/10/11
The Pound finished marginally higher against the Euro, but fell just over a cent against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate picked up from the morning’s open at 1.1490 to trade at 1.1495 by the close of the UK business day. The GBP/USD exchange rate however; fell across the course of the day; falling from 1.6011 at the morning’s open, to trade down at 1.5907 by the market close. There was no significant economic data released from the UK yesterday, with the depreciation against the US Dollar possibly being attributed to shifts in risk sentiment in regards the on-going woes in Europe.
Today will see the release of October’s CBI reported sales numbers; with the market forecast for a decline to around -16, lower than the previous month’s reading of -15, which could put a small amount of pressure on the Pound.
The Euro declined slightly against the Pound, but fell more heavily against the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate fell throughout the day, from the market open at 1.3933 to trade down at 1.3837 by the close of the European trading session. The European Central Bank (ECB) released its bank lending survey yesterday; showing that demand for year-long loans from the ECB was weaker than analyst’s initially forecast. The central bank announced it will lend banks 56.9 billion euros for 12 months; less than the median forecast of 70 billion euros in a Bloomberg News survey, and will also lend 44.6 billion euros for three months tomorrow, when 85 billion euros in three-month loans mature. The 3-month figure is also less than the 50 billion euros predicted in the Bloomberg survey.
One of the bigger events in focus for Europe yesterday was the EU leaders’ summit; which had slightly spooked markets with the cancellation of the finance ministers meeting – indicating that a detailed solution to the current debt woes was still far off. There was some resolution last night however, with the announcement that EU leaders have agreed to extend the EFSF fund to around €1 trillion, and will force banks across the region to increase their capital reserves. In regards to Greece specifically; the nation will have to reduce its public debt to 120% of GDP by 2020, with private investors agreeing to a voluntary bond swap that will wipe away 50% of the country’s obligations. Euro Zone member states will contribute up to €30 billion in additional capital while the “official sector” – presumably the EU – will provide additional financing up to €100 billion, for a total of €130 billion in new aid. This may bring some comfort to the market; but as many market experts have indicated, this is not a complete resolution, and may only serve to extend the problem.
In regards to economic data from Europe today; we will see the release of German CPI (inflation) figures for October, which are expected to show a slight slowdown in inflation which would be welcomed by the region. The Euro-zone business climate indicator figure for October will also cross the wires today, with the expectation for a fall in the level, which would not be positive for the single-currency.
The US Dollar did benefit from the European worries yesterday; gaining nearly a cent against both the Pound and the Euro. There was disappointing economic data released from the US though; with September’s durable goods orders showing a sharp drop from -0.1% to 0.8%.
Today will see the release of pending home sales numbers for September, which are expected to fall, but are unlikely to influence the market too much as the main focus will be on the reading of 3rd quarter (annualized) GDP this afternoon. The market forecast is for an increase in growth to around 2.5% which could see the Dollar gain some further strength in the market.
This Daily Market Update is brought to you by The Market Team @ KBRFX
– Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Today will see the release of October’s CBI reported sales numbers; with the market forecast for a decline to around -16, lower than the previous month’s reading of -15, which could put a small amount of pressure on the Pound.
The Euro declined slightly against the Pound, but fell more heavily against the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate fell throughout the day, from the market open at 1.3933 to trade down at 1.3837 by the close of the European trading session. The European Central Bank (ECB) released its bank lending survey yesterday; showing that demand for year-long loans from the ECB was weaker than analyst’s initially forecast. The central bank announced it will lend banks 56.9 billion euros for 12 months; less than the median forecast of 70 billion euros in a Bloomberg News survey, and will also lend 44.6 billion euros for three months tomorrow, when 85 billion euros in three-month loans mature. The 3-month figure is also less than the 50 billion euros predicted in the Bloomberg survey.
One of the bigger events in focus for Europe yesterday was the EU leaders’ summit; which had slightly spooked markets with the cancellation of the finance ministers meeting – indicating that a detailed solution to the current debt woes was still far off. There was some resolution last night however, with the announcement that EU leaders have agreed to extend the EFSF fund to around €1 trillion, and will force banks across the region to increase their capital reserves. In regards to Greece specifically; the nation will have to reduce its public debt to 120% of GDP by 2020, with private investors agreeing to a voluntary bond swap that will wipe away 50% of the country’s obligations. Euro Zone member states will contribute up to €30 billion in additional capital while the “official sector” – presumably the EU – will provide additional financing up to €100 billion, for a total of €130 billion in new aid. This may bring some comfort to the market; but as many market experts have indicated, this is not a complete resolution, and may only serve to extend the problem.
In regards to economic data from Europe today; we will see the release of German CPI (inflation) figures for October, which are expected to show a slight slowdown in inflation which would be welcomed by the region. The Euro-zone business climate indicator figure for October will also cross the wires today, with the expectation for a fall in the level, which would not be positive for the single-currency.
The US Dollar did benefit from the European worries yesterday; gaining nearly a cent against both the Pound and the Euro. There was disappointing economic data released from the US though; with September’s durable goods orders showing a sharp drop from -0.1% to 0.8%.
Today will see the release of pending home sales numbers for September, which are expected to fall, but are unlikely to influence the market too much as the main focus will be on the reading of 3rd quarter (annualized) GDP this afternoon. The market forecast is for an increase in growth to around 2.5% which could see the Dollar gain some further strength in the market.
This Daily Market Update is brought to you by The Market Team @ KBRFX
– Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Wednesday 26 October 2011
Daily Foreign Exchange Market Update 26/10/11
The Pound finished yesterday slightly higher against the Euro, but a touch lower against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate which opened at 1.1491 finished the UK business day trading at 1.1501 with the GBP/USD exchange rate closing at 1.5994, down from the morning’s open at 1.6007 following a very choppy trading session. There was a small disappointment in terms of UK economic data yesterday as September’s BBA loans for house purchase numbers showed a decline from 35,009 to 33,130 amid market forecasts for a sharp increase.
There is no significant market-moving data scheduled for the UK today; leaving the currency open to shifts in risk sentiment and news from the world’s other major economies.
The Euro ended the day marginally lower versus both the Pound and the US Dollar in the currency exchange market. The EUR/USD fell across the day from the morning’s open at 1.3927, to trade at 1.3906 by the market close. There was some positive data release form the Euro-zone, with November’s German GfK consumer confidence survey showing a small increase to 5.3, up from the previous month’s reading of 5.2.
Today is likely to be a very high-pressure day for the Euro. This morning will see the European Central Bank (ECB) release its latest bank lending survey; which will give some insight into how much extra capital Euro region financial institutions have been seeking; in what are turbulent times for banks trying to reduce their risk levels and steady their balance sheets. The main focus though will be on the EU summit in Brussels; with the market expecting European leaders to announce an increase in the size of the European Financial Stability Facility (EFSF) to around €1 trillion, a commitment to a further Greek bail-out and also an injection of further capital into European banks Despite the market feeling that resolution may be nearing; there has been a shock in the cancellation of the EU finance ministers meeting that was scheduled for today; which would suggest that a detailed solution is unlikely to be produced this evening. There are huge political connotations to any sort of resolution, with many European nations most notably Germany facing the possibility of political rebellion as many parties feel that the risk being imposed to support other member states will prove to be the beginning of the end.
The US Dollar, which would traditionally benefit from turmoil in world markets failed to make any significant gain against the Pound yesterday, and only rose marginally against the Euro. The currency was hit by a hefty drop in consumer confidence levels for October, the headline number falling from 46.4 to 39.8 amid a progressively worsening outlook across the nation.
Today will see the release of September’s durable goods orders figures, with the market forecast for a fall in orders, from 0.1% to around 0.9%, which could see the Dollar weaken further.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
There is no significant market-moving data scheduled for the UK today; leaving the currency open to shifts in risk sentiment and news from the world’s other major economies.
The Euro ended the day marginally lower versus both the Pound and the US Dollar in the currency exchange market. The EUR/USD fell across the day from the morning’s open at 1.3927, to trade at 1.3906 by the market close. There was some positive data release form the Euro-zone, with November’s German GfK consumer confidence survey showing a small increase to 5.3, up from the previous month’s reading of 5.2.
Today is likely to be a very high-pressure day for the Euro. This morning will see the European Central Bank (ECB) release its latest bank lending survey; which will give some insight into how much extra capital Euro region financial institutions have been seeking; in what are turbulent times for banks trying to reduce their risk levels and steady their balance sheets. The main focus though will be on the EU summit in Brussels; with the market expecting European leaders to announce an increase in the size of the European Financial Stability Facility (EFSF) to around €1 trillion, a commitment to a further Greek bail-out and also an injection of further capital into European banks Despite the market feeling that resolution may be nearing; there has been a shock in the cancellation of the EU finance ministers meeting that was scheduled for today; which would suggest that a detailed solution is unlikely to be produced this evening. There are huge political connotations to any sort of resolution, with many European nations most notably Germany facing the possibility of political rebellion as many parties feel that the risk being imposed to support other member states will prove to be the beginning of the end.
The US Dollar, which would traditionally benefit from turmoil in world markets failed to make any significant gain against the Pound yesterday, and only rose marginally against the Euro. The currency was hit by a hefty drop in consumer confidence levels for October, the headline number falling from 46.4 to 39.8 amid a progressively worsening outlook across the nation.
Today will see the release of September’s durable goods orders figures, with the market forecast for a fall in orders, from 0.1% to around 0.9%, which could see the Dollar weaken further.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Tuesday 25 October 2011
Daily Foreign Exchange Market Update 25/10/11
The Pound closed out the day slightly lower against the Euro, but higher versus the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate fell from the morning’s open at 1.1485 to trade down at 1.1477 by the UK market close. The GBP/USD exchange rate however picked up from 1.5952 to trade up at 1.5983 by the market close, with the rate breaking 1.60 in the early hours of this morning; before pulling back slightly. There were no significant data releases from the UK yesterday, with the currency market responding to shifts in risk sentiment and news from the world’s other major economies.
This morning will see the release of September’s BBA loans for house purchase figures, with the market forecast for there to be an increase in the overall number; from 35,226 in the previous month to around 36,000; which could be positive for the Pound as it would indicate an improvement in a small part of the credit market.
The Euro lost ground against the Pound, put pulled back against the US Dollar yesterday in the currency exchange market. Despite ongoing issues in regards to the regions debt woes, the currency managed to regain nearly half a cent against the Dollar, the EUR/USD exchange rate rising from 1.3889 to trade up at 1.3925 by the market close. The overall view of yesterday’s economic data released from Europe was negative, with Euro-zone PMI manufacturing and services indices both falling in October, as well as German PMI manufacturing falling for the same period. There was a small increase in German PMI services data for October, but it was not enough to change the negative outlook.
This morning has already seen the release of German GfK consumer confidence numbers for November, and there was a surprise pick-up in the overall level, from 5.2 to 5.3 for the month. The news had hardly any effect on the market though, with the Euro still facing the potential of some very choppy movements in the coming days.
The US Dollar weakened against both the Euro and the Pound in yesterday’s trading, and the currency was not helped by negative data released; with the Chicago Fed National Activity Index for September showing a decline from the previous month’s level of 0.59, down to 0.22.
The currency is likely to take direction from today’s key release of consumer confidence numbers for October, with the market forecast for an increase in positivity, which could help the Dollar regain a foothold in the market, following almost a full week of declines against the Pound. Augusts’ house price index figures will also cross the wires; with the expectation to see a decline overall; which while negative is likely to be overshadowed by the consumer confidence figure.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning will see the release of September’s BBA loans for house purchase figures, with the market forecast for there to be an increase in the overall number; from 35,226 in the previous month to around 36,000; which could be positive for the Pound as it would indicate an improvement in a small part of the credit market.
The Euro lost ground against the Pound, put pulled back against the US Dollar yesterday in the currency exchange market. Despite ongoing issues in regards to the regions debt woes, the currency managed to regain nearly half a cent against the Dollar, the EUR/USD exchange rate rising from 1.3889 to trade up at 1.3925 by the market close. The overall view of yesterday’s economic data released from Europe was negative, with Euro-zone PMI manufacturing and services indices both falling in October, as well as German PMI manufacturing falling for the same period. There was a small increase in German PMI services data for October, but it was not enough to change the negative outlook.
This morning has already seen the release of German GfK consumer confidence numbers for November, and there was a surprise pick-up in the overall level, from 5.2 to 5.3 for the month. The news had hardly any effect on the market though, with the Euro still facing the potential of some very choppy movements in the coming days.
The US Dollar weakened against both the Euro and the Pound in yesterday’s trading, and the currency was not helped by negative data released; with the Chicago Fed National Activity Index for September showing a decline from the previous month’s level of 0.59, down to 0.22.
The currency is likely to take direction from today’s key release of consumer confidence numbers for October, with the market forecast for an increase in positivity, which could help the Dollar regain a foothold in the market, following almost a full week of declines against the Pound. Augusts’ house price index figures will also cross the wires; with the expectation to see a decline overall; which while negative is likely to be overshadowed by the consumer confidence figure.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Monday 24 October 2011
Foreign Exchange Daily Market Update 24/10/11
The Pound closed out last week higher against both the Euro and the US Dollar in the foreign exchange market. The GBP/EUR exchange rate picked up across the course of the week, from Monday’s open at 1.1384 to trade up at 1.1489 by the close of the UK business day on Friday. The GBP/USD exchange rate also followed a similar pattern, with the rate opening on Monday at 1.5814, and closing on Friday up at 1.5942. This was despite a worrying inflation outlook from the UK, with the latest CPI figures released showing that the annual rate of price-growth rose to 5.2% from 4.9%, way above the Bank of England’s 2.0% target. The main market focus for the UK though was on the release of the Bank of England’s minutes from its last policy meeting; with the minutes showing that policy-makers voted unanimously (9-0) to inject a further £75billion into the economy over the coming months, and also discussed the possibility of the amount being as much as £100billion. The central bank was also united in its decision to keep interest rates at a record-low of 0.5%, despite inflation being at record levels; the latest figures showing price-growth standing at 5.2%. Governor Mervyn King warned that Britain was in the grip of the world’s worst ever financial crisis, and that the British economy would stall without the combination of further quantitative easing and ‘ultra-low’ interest rates. Despite UK government cutbacks, public sector net borrowing figures for September released last week showed an increase, from the previous month’s level of £10.9billion to £11.4billion. Public finance figures also showed an increase in the amount of money financed to the UK government, from £11.8billion to £19.9billion.
The week ahead will be much lighter in terms of economic data for the UK. Tuesday will see the release of the latest BBA loans for house purchase figures, with the market forecast for an increase in the figure for September. Friday morning could well see the main data release of the day affect the Pound’s standing in the market, with the release of GfK consumer confidence numbers for October released in the early hours. The market expectation is for no change in the index, but with increasing inflation, and a worsening jobs market in the UK, there is potential for a downturn in the figure.
The Euro finished last week lower against the Pound and the US Dollar in the currency exchange market. The currency has been coming under fierce pressure as EU leaders are still trying to reach a solution for the debt issues across the region, with a number of market participants seeing potential ongoing problems for the Euro-zone even if a solution is agreed upon; with European banks needing to strengthen their balance sheets, and the possible involvement of the ECB being brought into question. The EUR/USD exchange rate fell across the course of the week, from Monday’s open at 1.3890, down to 1.3659 by the close of the UK business day on Friday. Economic data released form Europe last week was pretty negative, with Euro-zone consumer confidence falling once again for October; down to -19.9 from -19.1, and also ZEW economic sentiment figures showing a decline from -43.3 to -48.3 for the same period.
This week will see some high-level market events, with Tuesday’s release of German GfK consumer confidence numbers, as well as Thursday’s German CPI (inflation) figures, and the latest Euro-zone business climate survey. The main market focus though is more than likely to be Wednesday’s market events, which will see the ECB release the results of a bank lending survey, and will also see EU leaders meeting at a debt summit, to try and come to agreement on an ongoing plan top try and restore some market credibility and financial stability to the region. The Euro could face even more pressure if there is no sign of a positive progression from this summit, with the market primed to punish any lack of tangible solution.
The US Dollar certainly benefitted from the debt woes in Europe last week by gaining against the single-currency across the week. The US Dollar however lost ground against the Pound, trading nearly a cent and a half lower against the Pound from Monday through to Friday. Data released from the US was fairly mixed, with CPI (inflation) rising annually in September, from 3.8% to 3.9%. Producer prices though held firm at 2.5% for September. The release of the Federal Reserve’s beige book economic survey showed a mixed outlook for the nation; with overall economic activity continuing to grow in September, albeit slowly, but with businesses expecting this to be ‘modest’ over the coming months.
There will be plenty of economic data crossing the wires form the US this week. Tuesday will see headline US consumer confidence figures released, with the market forecast to see an increase in positivity. Wednesday will see the release of durable goods orders figures for September; which are expected to show a sharp downturn. Thursday will be data-heavy for the US with 3rd quarter GDP figures, pending home sales and personal consumption numbers crossing the wires. The week will round off with Friday’s release of personal income and spending figures along with October’s University of Michigan confidence index, which is projected to show an increase for the month.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The week ahead will be much lighter in terms of economic data for the UK. Tuesday will see the release of the latest BBA loans for house purchase figures, with the market forecast for an increase in the figure for September. Friday morning could well see the main data release of the day affect the Pound’s standing in the market, with the release of GfK consumer confidence numbers for October released in the early hours. The market expectation is for no change in the index, but with increasing inflation, and a worsening jobs market in the UK, there is potential for a downturn in the figure.
The Euro finished last week lower against the Pound and the US Dollar in the currency exchange market. The currency has been coming under fierce pressure as EU leaders are still trying to reach a solution for the debt issues across the region, with a number of market participants seeing potential ongoing problems for the Euro-zone even if a solution is agreed upon; with European banks needing to strengthen their balance sheets, and the possible involvement of the ECB being brought into question. The EUR/USD exchange rate fell across the course of the week, from Monday’s open at 1.3890, down to 1.3659 by the close of the UK business day on Friday. Economic data released form Europe last week was pretty negative, with Euro-zone consumer confidence falling once again for October; down to -19.9 from -19.1, and also ZEW economic sentiment figures showing a decline from -43.3 to -48.3 for the same period.
This week will see some high-level market events, with Tuesday’s release of German GfK consumer confidence numbers, as well as Thursday’s German CPI (inflation) figures, and the latest Euro-zone business climate survey. The main market focus though is more than likely to be Wednesday’s market events, which will see the ECB release the results of a bank lending survey, and will also see EU leaders meeting at a debt summit, to try and come to agreement on an ongoing plan top try and restore some market credibility and financial stability to the region. The Euro could face even more pressure if there is no sign of a positive progression from this summit, with the market primed to punish any lack of tangible solution.
The US Dollar certainly benefitted from the debt woes in Europe last week by gaining against the single-currency across the week. The US Dollar however lost ground against the Pound, trading nearly a cent and a half lower against the Pound from Monday through to Friday. Data released from the US was fairly mixed, with CPI (inflation) rising annually in September, from 3.8% to 3.9%. Producer prices though held firm at 2.5% for September. The release of the Federal Reserve’s beige book economic survey showed a mixed outlook for the nation; with overall economic activity continuing to grow in September, albeit slowly, but with businesses expecting this to be ‘modest’ over the coming months.
There will be plenty of economic data crossing the wires form the US this week. Tuesday will see headline US consumer confidence figures released, with the market forecast to see an increase in positivity. Wednesday will see the release of durable goods orders figures for September; which are expected to show a sharp downturn. Thursday will be data-heavy for the US with 3rd quarter GDP figures, pending home sales and personal consumption numbers crossing the wires. The week will round off with Friday’s release of personal income and spending figures along with October’s University of Michigan confidence index, which is projected to show an increase for the month.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Thursday 20 October 2011
Foreign Exchange Daily Market Update 20/10/11
The Pound closed out yesterday higher against both the Euro and the US Dollar in the foreign exchange market. The GBP/EUR exchange rate finished the day at 1.1465, up from the morning’s open at 1.1407, with the GBP/USD exchange rate also closing higher, up from the morning’s open at 1.5756 to 1.5803 by the close of the UK business day. The main market focus for the UK yesterday was on the release of the Bank of England’s minutes from its last policy meeting; with the minutes showing that policy-makers voted unanimously (9-0) to inject a further £75billion into the economy over the coming months, and also discussed the possibility of the amount being as much as £100billion. The central bank was also united in its decision to keep interest rates at a record-low of 0.5%, despite inflation being at record levels; the latest figures showing price-growth standing at 5.2%. Governor Mervyn King warned that Britain was in the grip of the world’s worst ever financial crisis, and that the British economy would stall without the combination of further quantitative easing and ‘ultra-low’ interest rates.
This morning will see the release of September’s retail sales figures, with the market forecast for an increase in both the annual and monthly levels. This result would be positive for the Pound, as it would show that despite problems across Europe and a supposed lack of consumer confidence; that people are still spending, which is essential for any form of economic stability/growth.
The Euro fell against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate fell from the morning’s open at 1.3812, to trade at 1.3780 by the market close, as news agencies worldwide reported on violent clashes between striking protestors and police in Greece. The country, which has, and is still employing deep austerity measures to ensure ongoing funding to prevent a default is seeing a 48 hour walkout by workers across the nation, in protest at the effect that searing government cuts are having on their wages, pensions, and quality of life. Ahead of crucial G20 talks this week, there is worry within the market that increasing the European Financial Stability Facility (EFSF) to help Greece could be misguided as it would create a circular problem; using a fund backed by Euro-zone countries to insure against default of the very same economies. It has been mooted that the ECB could increase its government bond buying activity, but there are worries that it would compromise its independence, and the fact that it is already carrying around €590billion worth of Portuguese, Irish, Italian, Greek and Spanish debt. With no clear solution easily viewable, the Euro could face firm pressure within the market over the coming days.
Today we have already seen the release of German PPI figures for September, which showed no change in the annual level of 5.5%, but an increase month-on-month from -0.3% to +0.3%. Later on today we will see the release of the German Economic Ministry’s GDP forecast, which will hopefully give some insight into the projected growth levels for one of the Euro-zone’s stronger nations; amid a current European debt situation which has the potential to send shockwaves across the globe. European consumer confidence numbers will cross the wires this afternoon, with the expectation to see yet another drop in the reading, which could add more pressure onto the European currency.
The US Dollar lost ground against the Pound, but took advantage of increased negative sentiment in the market towards Europe to gain against the single-currency (Euro) yesterday. There was also some positive news from the US, with housing starts for September showing an increase from the previous month, up to 658,000 from 572,000. CPI (inflation) figures showed a small increase in price-growth annually, from 3.8% to 3.9%, but inflation fell monthly, from 0.4% to 0.3%, which will ease some pressure on both US consumers and the Federal Reserve. The release of the Federal Reserve’s ‘beige-book’ economic survey showed a mixed outlook for the nation; with overall economic activity continuing to grow in September, albeit slowly, but with businesses expecting this to be ‘modest’ over the coming months.
The US economic docket for today will see the release of September’s existing home sales numbers, which are expected to see a downturn from the previous months reading of 5.03million to around 4.90million. The Philadelphia Fed Index will also report this afternoon, with the market forecast for an increase in positivity, but the figure to still remain at a negative level overall. The Dollar will be more likely to take direction from developing events across Europe today, as opposed to key data from home.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning will see the release of September’s retail sales figures, with the market forecast for an increase in both the annual and monthly levels. This result would be positive for the Pound, as it would show that despite problems across Europe and a supposed lack of consumer confidence; that people are still spending, which is essential for any form of economic stability/growth.
The Euro fell against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate fell from the morning’s open at 1.3812, to trade at 1.3780 by the market close, as news agencies worldwide reported on violent clashes between striking protestors and police in Greece. The country, which has, and is still employing deep austerity measures to ensure ongoing funding to prevent a default is seeing a 48 hour walkout by workers across the nation, in protest at the effect that searing government cuts are having on their wages, pensions, and quality of life. Ahead of crucial G20 talks this week, there is worry within the market that increasing the European Financial Stability Facility (EFSF) to help Greece could be misguided as it would create a circular problem; using a fund backed by Euro-zone countries to insure against default of the very same economies. It has been mooted that the ECB could increase its government bond buying activity, but there are worries that it would compromise its independence, and the fact that it is already carrying around €590billion worth of Portuguese, Irish, Italian, Greek and Spanish debt. With no clear solution easily viewable, the Euro could face firm pressure within the market over the coming days.
Today we have already seen the release of German PPI figures for September, which showed no change in the annual level of 5.5%, but an increase month-on-month from -0.3% to +0.3%. Later on today we will see the release of the German Economic Ministry’s GDP forecast, which will hopefully give some insight into the projected growth levels for one of the Euro-zone’s stronger nations; amid a current European debt situation which has the potential to send shockwaves across the globe. European consumer confidence numbers will cross the wires this afternoon, with the expectation to see yet another drop in the reading, which could add more pressure onto the European currency.
The US Dollar lost ground against the Pound, but took advantage of increased negative sentiment in the market towards Europe to gain against the single-currency (Euro) yesterday. There was also some positive news from the US, with housing starts for September showing an increase from the previous month, up to 658,000 from 572,000. CPI (inflation) figures showed a small increase in price-growth annually, from 3.8% to 3.9%, but inflation fell monthly, from 0.4% to 0.3%, which will ease some pressure on both US consumers and the Federal Reserve. The release of the Federal Reserve’s ‘beige-book’ economic survey showed a mixed outlook for the nation; with overall economic activity continuing to grow in September, albeit slowly, but with businesses expecting this to be ‘modest’ over the coming months.
The US economic docket for today will see the release of September’s existing home sales numbers, which are expected to see a downturn from the previous months reading of 5.03million to around 4.90million. The Philadelphia Fed Index will also report this afternoon, with the market forecast for an increase in positivity, but the figure to still remain at a negative level overall. The Dollar will be more likely to take direction from developing events across Europe today, as opposed to key data from home.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Wednesday 19 October 2011
Foreign Exchange Daily Market Update 19/10/11
Yesterday the Pound experienced a choppy trading session against the Euro and the US Dollar. The GBP/EUR exchange rate opened the day at 1.1494 and held a narrow range for much of the morning, but by midday the foreign exchange market saw the pair steadily fall to hit a low of 1.1403. The GBP/USD exchange rate opened at 1.5757 and reached it's peak early into the day at 1.5785, but from then on the rate fell to its low of 1.5629. The Pound's decline seemed to coincide with the news that September's Consumer Price Index (CPI) rose by 5.2% annually exceeding forecasts for CPI to come in at 4.9%.
Today the Minutes to the Bank of England's (BoE) latest policy meeting will be in focus, with many traders looking to the minutes for indications as to whether the recent £75 billion increase in quantitative easing (QE) will be a one-off or if further stimulus may be on the cards. Any such mention of further QE could signal that the BoE is preparing itself for the possibility of a double-dip recession, and as a result the Pound could continue yesterday's decline.
The Euro managed to make gains against the Pound during yesterday's trading session, but against the US Dollar price action was quite volatile with the currency pair closing out slightly higher than when it opened. The currency exchange market saw the EUR/USD exchange rate open the European market at 1.3700 and then preceeded to make minor gains and then slip back with the pair hitting a low of 1.3652 by 15:00 GMT, but managed to climb back and close the day out at 1.3725. A worse than expected result for Germany's ZEW survey on Economic Sentiment for October aided in volatility of the single currency, with the survey producing a figure of -48.3 versus the forecasted outcome of -45.
Today the European economic docket lacks significant data releases, meaning the Euro will be subject to wider implications of risk aversion and news from other major economies.
The US Dollar managed to make gains against the Pound during yesterday's European session but failed to maintain the moment throughout the North American market session and the currency pair retraced earlier loses, while price action remained choppy against the Euro but by the open of the American market saw the Euro strengthen. On the data front, the annualised Producer Price Index (PPI) for September rose from 6.5% to 6.9%, while the core index which excludes food and fuel prices held at 2.5% compared to this time last year.
Meanwhile, Federal Reserve Chairman Ben Bernake delivered the keynote speech at the Boston Fed's 56th annual conference where he stated that the financial crisis of 2008 has "reminded us that the responsibility of central banks to protect financial stability is at least as important as the responsibility to use monetary policy effectively in the pursuit of macroeconomic objectives." However Bernanke failed to comment on the health of the US economy, but fellow Federal Open Market Committee members have stated that the Fed has done all it can to provide support for the US economy and that further accomadation could cause runaway inflation.
Looking ahead, the US will see the release of September's CPI reading with forecasts calling for inflation to reach 3.8% annually and the core index to rise from 2.0% to 2.1%. Building permit and housing start figures for September will also make an appearance with forecasts calling for increases in both figures, a result which could bolster the US Dollar.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Today the Minutes to the Bank of England's (BoE) latest policy meeting will be in focus, with many traders looking to the minutes for indications as to whether the recent £75 billion increase in quantitative easing (QE) will be a one-off or if further stimulus may be on the cards. Any such mention of further QE could signal that the BoE is preparing itself for the possibility of a double-dip recession, and as a result the Pound could continue yesterday's decline.
The Euro managed to make gains against the Pound during yesterday's trading session, but against the US Dollar price action was quite volatile with the currency pair closing out slightly higher than when it opened. The currency exchange market saw the EUR/USD exchange rate open the European market at 1.3700 and then preceeded to make minor gains and then slip back with the pair hitting a low of 1.3652 by 15:00 GMT, but managed to climb back and close the day out at 1.3725. A worse than expected result for Germany's ZEW survey on Economic Sentiment for October aided in volatility of the single currency, with the survey producing a figure of -48.3 versus the forecasted outcome of -45.
Today the European economic docket lacks significant data releases, meaning the Euro will be subject to wider implications of risk aversion and news from other major economies.
The US Dollar managed to make gains against the Pound during yesterday's European session but failed to maintain the moment throughout the North American market session and the currency pair retraced earlier loses, while price action remained choppy against the Euro but by the open of the American market saw the Euro strengthen. On the data front, the annualised Producer Price Index (PPI) for September rose from 6.5% to 6.9%, while the core index which excludes food and fuel prices held at 2.5% compared to this time last year.
Meanwhile, Federal Reserve Chairman Ben Bernake delivered the keynote speech at the Boston Fed's 56th annual conference where he stated that the financial crisis of 2008 has "reminded us that the responsibility of central banks to protect financial stability is at least as important as the responsibility to use monetary policy effectively in the pursuit of macroeconomic objectives." However Bernanke failed to comment on the health of the US economy, but fellow Federal Open Market Committee members have stated that the Fed has done all it can to provide support for the US economy and that further accomadation could cause runaway inflation.
Looking ahead, the US will see the release of September's CPI reading with forecasts calling for inflation to reach 3.8% annually and the core index to rise from 2.0% to 2.1%. Building permit and housing start figures for September will also make an appearance with forecasts calling for increases in both figures, a result which could bolster the US Dollar.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Tuesday 18 October 2011
Foreign Exchange Daily Market Update 18/10/11
The Pound finished yesterday’s trading session lower against the US Dollar but managed to regain some lost ground against the Euro. The foreign exchange market saw the GBP/EUR exchange pick up form an early morning low of 1.1365 and advance to a high of 1.1473 near the close of the European market. The GBP/USD exchange rate move in exact opposition with the currency pair peaking at high of 1.5847 at the session’s open, then falling sharply to the day’s low of 1.5733 before recovering to levels of around 1.5770. Yesterday’s docket was devoid of UK economic figures meaning the Pound’s strength was subject to events in the wider world.
This morning the UK has seen its Consumer Price Index (CPI) for September come in above expectations with the month-on-month reading rising to 0.6% instead of 0.4% as predicted. The year-on-year reading also rose above the consensus of 4.9% to 5.2%. The immediate market reaction was for a drop in the GBP/USD exchange rate from 1.5772 to 1.5741, the GBP/EUR rate fell from 1.15 to 1.1485. However given that the Bank of England has initiated another round monetary stimulus, the rise in inflation is unlikely to spur the central bank into raising the interest rate meaning this initial reaction will probably be short lived.
The Euro weakend against both the Pound and the US Dollar over the course of yesterday’s trading session. The single currency was not helped by news that both German Chancellor Angela Merkel and the country’s Finance Minister Schaeuble could not see a solution to the European debt problem being revealed by the weekend. This meant that EUR/USD exchange rate slipped from an early high of 1.3914 down to 1.3740 before the close of the market.
On the docket today, the currency exchange market will see the release of Germany’s ZEW survey on economic sentiment for the month of October. Forecasts call for the sentiment index to worsen from September’s reading of -43.3 to -45. Should the survey results fall in-line with the market concensus, then the Euro will most likely continue its downward journey against the other major currencies, as the economic outlook for Europe’s biggest eocnomic contributor worsens.
The US Dollar gathered strength against both the Euro and the British Pound through yesterday’s markets. News of Europe’s struggle to solve its debt crisis aided the Dollar’s advance, but domestic news also provided the currency with an opportunity to strengthen when September’s industrial production figures came in-line with expectations at 0.2%.
Looking forward to today’s economic calendar, September’s Producer Price Index (PPI) is scheduled for release with expectations calling for the core PPI to slow from to 2.5% to 2.4% annual growth, while the total PPI follows suit by slowing to 6.45 form 6.5%. Elsewhere Federal Reserve Chairman Ben Bernanke will be speaking in Boston this afternoon. The Chairman’s words may sway the market should he speak of confidence in the US economy, which will result in an appreciation in the Dollar, whereas should he speak of weakness in the US economy then the reverse could be true.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning the UK has seen its Consumer Price Index (CPI) for September come in above expectations with the month-on-month reading rising to 0.6% instead of 0.4% as predicted. The year-on-year reading also rose above the consensus of 4.9% to 5.2%. The immediate market reaction was for a drop in the GBP/USD exchange rate from 1.5772 to 1.5741, the GBP/EUR rate fell from 1.15 to 1.1485. However given that the Bank of England has initiated another round monetary stimulus, the rise in inflation is unlikely to spur the central bank into raising the interest rate meaning this initial reaction will probably be short lived.
The Euro weakend against both the Pound and the US Dollar over the course of yesterday’s trading session. The single currency was not helped by news that both German Chancellor Angela Merkel and the country’s Finance Minister Schaeuble could not see a solution to the European debt problem being revealed by the weekend. This meant that EUR/USD exchange rate slipped from an early high of 1.3914 down to 1.3740 before the close of the market.
On the docket today, the currency exchange market will see the release of Germany’s ZEW survey on economic sentiment for the month of October. Forecasts call for the sentiment index to worsen from September’s reading of -43.3 to -45. Should the survey results fall in-line with the market concensus, then the Euro will most likely continue its downward journey against the other major currencies, as the economic outlook for Europe’s biggest eocnomic contributor worsens.
The US Dollar gathered strength against both the Euro and the British Pound through yesterday’s markets. News of Europe’s struggle to solve its debt crisis aided the Dollar’s advance, but domestic news also provided the currency with an opportunity to strengthen when September’s industrial production figures came in-line with expectations at 0.2%.
Looking forward to today’s economic calendar, September’s Producer Price Index (PPI) is scheduled for release with expectations calling for the core PPI to slow from to 2.5% to 2.4% annual growth, while the total PPI follows suit by slowing to 6.45 form 6.5%. Elsewhere Federal Reserve Chairman Ben Bernanke will be speaking in Boston this afternoon. The Chairman’s words may sway the market should he speak of confidence in the US economy, which will result in an appreciation in the Dollar, whereas should he speak of weakness in the US economy then the reverse could be true.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Monday 17 October 2011
Foreign Exchange Daily Market Update 17/10/11
The Pound finished last week lower against the Euro; but much higher against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate closed out the week at 1.1410, well down from the week’s open at 1.1544. The GBP/USD exchange rate however, picked up across the course of the week; from Monday’s open at 1.5620, to trade up at 1.5799 by the close of the UK business day on Friday. Overall, the economic news released from the UK last week was negative, with industrial production and manufacturing production both falling annually. The UK’s labour market saw signs of further negativity; with the claimant count rate increasing from 4.9% to 5.0%, and the ILO unemployment rate also rising; from 7.9% to 8.1%, the highest level since 1996. The UK’s trade balance did decrease slightly, the trade deficit narrowed slightly in August, from -£8,156 million to -£7,768 million, but still shows the UK’s heavy over-reliance on imported goods, and minimal export activity.
The main focus of the week ahead is probably the release of the Bank of England’s minutes from its last policy meeting on Wednesday. With the central bank adding an extra £75billion to its asset purchasing programme, it will be important to see the voting majorities in terms of the additional stimulus; and also the maintaining of the current base interest rate. The minutes should also give some insight into the overall stance from the Bank of England in regards to future policy, and also expectations for both economic and price-growth over the coming months. Aside from that, we will see the release of CPI (inflation) figures for September on Tuesday, with the expectation for the annual inflation to rate to have reached nearly 5.0%, which would be a hug concern for the central bank; with some market participants mooting a possible rate-cut in the UK to combat burgeoning price-growth. Thursday will see the latest retail sales figures cross the wires, and then on Friday we will see the release of the latest Nationwide consumer confidence figures, along with public finance numbers for September.
The Euro closed out last week having gained against both the Pound and the US Dollar in the currency exchange market. The EUR/USD exchange rate moved up considerably across the week; from Monday’s open at 1.3531, to trade up at 1.3844 by the UK market close on Friday. Economic data released from the Euro-zone was mostly positive; with Euro-zone industrial production showing good gains, both annually and month-on-month. German trade balance figures showed an increase in the nation’s trade surplus, a positive sign of its huge export market, the level increasing from €10.5billion to €11.8billion. There was a small worry with Euro-zone CPI figures, which showed a pick up in inflation annually from 2.5% to 3.0%, and monthly from 0.2% to 0.8%, which will worry the European central Bank slightly, as they seek to combat high inflation. The main focus was on the ECB’s monthly report though, which was in no way positive for the Euro-zone. The report stated that growth in the Euro region would remain ‘moderate’ for the rest of the year, that there are ‘increasing downside risks’ and also that inflation will remain ‘clearly above 2.0%’ for the time being.
This week will again contain plenty of high-level market data from Europe. Tuesday will see the release of German and Euro-zone ZEW economic sentiment figures for October, which could put pressure on the currency if they report lower; which is highly likely. Thursday will be a data-heavy day, with German producer prices, Euro-zone consumer confidence, and German economic ministry GDP forecasts all crossing the wires. The week will round off on Friday with the release of German IFO figures for business climate, current assessment, and expectations, and also Euro-zone government debt to GDP ratio figures for 2010. The currency could be affected by these, with the level set to report at around 85.1%, and could well push higher throughout this year.
The US Dollar fell against both the Pound and the Euro last week, and the currency was definitely not helped by very dovish commentary from the Federal Reserve. Minutes released from the Federal Reserve’s last policy meeting, showed that 2 policy-makers voted for extra monetary stimulus as they felt that the weak economy justified the addition of more funding. The minutes also showed that 3 policy-makers voted against the shifting of $400 billion towards extending the maturity date of the central bank’s security holdings, the largest dissenting majority seen by an FOMC voting board in over 20 years. In terms of growth, the minutes stated that the Fed sees a ‘bleak economic outlook’ and there are ‘significant downside risks’ to future growth. There was some positivity in advance retail sales numbers for September, which showed a pick-up from 0.3% to 1.1%. The week closed out on a dour not though, with the University of Michigan confidence survey showing a downturn in October; from 59.4 to 57.5, completely opposite to the market forecast.
The US economic docket is data-heavy this week, and will kick-off today with the release of industrial production figures for September. Tuesday will see the release of PPI figures, along with Net long-term TIC flows, and will also see Federal reserve Chairman Ben Bernanke speaking in Boston; with market experts poised for any commentary from the bank chief. CPI (inflation) figures for September will cross the wires on Wednesday, along with housing starts and the beige book economic survey. The week will round off on Thursday with the release of existing home sales numbers, which are poised for a slight rebound, and the Philadelphia Fed index which is expected to show a positive upturn.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The main focus of the week ahead is probably the release of the Bank of England’s minutes from its last policy meeting on Wednesday. With the central bank adding an extra £75billion to its asset purchasing programme, it will be important to see the voting majorities in terms of the additional stimulus; and also the maintaining of the current base interest rate. The minutes should also give some insight into the overall stance from the Bank of England in regards to future policy, and also expectations for both economic and price-growth over the coming months. Aside from that, we will see the release of CPI (inflation) figures for September on Tuesday, with the expectation for the annual inflation to rate to have reached nearly 5.0%, which would be a hug concern for the central bank; with some market participants mooting a possible rate-cut in the UK to combat burgeoning price-growth. Thursday will see the latest retail sales figures cross the wires, and then on Friday we will see the release of the latest Nationwide consumer confidence figures, along with public finance numbers for September.
The Euro closed out last week having gained against both the Pound and the US Dollar in the currency exchange market. The EUR/USD exchange rate moved up considerably across the week; from Monday’s open at 1.3531, to trade up at 1.3844 by the UK market close on Friday. Economic data released from the Euro-zone was mostly positive; with Euro-zone industrial production showing good gains, both annually and month-on-month. German trade balance figures showed an increase in the nation’s trade surplus, a positive sign of its huge export market, the level increasing from €10.5billion to €11.8billion. There was a small worry with Euro-zone CPI figures, which showed a pick up in inflation annually from 2.5% to 3.0%, and monthly from 0.2% to 0.8%, which will worry the European central Bank slightly, as they seek to combat high inflation. The main focus was on the ECB’s monthly report though, which was in no way positive for the Euro-zone. The report stated that growth in the Euro region would remain ‘moderate’ for the rest of the year, that there are ‘increasing downside risks’ and also that inflation will remain ‘clearly above 2.0%’ for the time being.
This week will again contain plenty of high-level market data from Europe. Tuesday will see the release of German and Euro-zone ZEW economic sentiment figures for October, which could put pressure on the currency if they report lower; which is highly likely. Thursday will be a data-heavy day, with German producer prices, Euro-zone consumer confidence, and German economic ministry GDP forecasts all crossing the wires. The week will round off on Friday with the release of German IFO figures for business climate, current assessment, and expectations, and also Euro-zone government debt to GDP ratio figures for 2010. The currency could be affected by these, with the level set to report at around 85.1%, and could well push higher throughout this year.
The US Dollar fell against both the Pound and the Euro last week, and the currency was definitely not helped by very dovish commentary from the Federal Reserve. Minutes released from the Federal Reserve’s last policy meeting, showed that 2 policy-makers voted for extra monetary stimulus as they felt that the weak economy justified the addition of more funding. The minutes also showed that 3 policy-makers voted against the shifting of $400 billion towards extending the maturity date of the central bank’s security holdings, the largest dissenting majority seen by an FOMC voting board in over 20 years. In terms of growth, the minutes stated that the Fed sees a ‘bleak economic outlook’ and there are ‘significant downside risks’ to future growth. There was some positivity in advance retail sales numbers for September, which showed a pick-up from 0.3% to 1.1%. The week closed out on a dour not though, with the University of Michigan confidence survey showing a downturn in October; from 59.4 to 57.5, completely opposite to the market forecast.
The US economic docket is data-heavy this week, and will kick-off today with the release of industrial production figures for September. Tuesday will see the release of PPI figures, along with Net long-term TIC flows, and will also see Federal reserve Chairman Ben Bernanke speaking in Boston; with market experts poised for any commentary from the bank chief. CPI (inflation) figures for September will cross the wires on Wednesday, along with housing starts and the beige book economic survey. The week will round off on Thursday with the release of existing home sales numbers, which are poised for a slight rebound, and the Philadelphia Fed index which is expected to show a positive upturn.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Thursday 13 October 2011
Daily Foreign Exchange Market Update 13/10/11
The Pound finished the day almost unchanged against the Euro, but higher against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate which opened at 1.1413, closed the day out at 1.1413; with the GBP/USD exchange rate picking up from 1.5623 at the morning’s open, to trade up at 1.5761 by the end of the UK business day. Economic data released from the UK yesterday was negative overall, and fully-focused on the labour market. Figures showed that the claimant count rate for September increased from 4.9% to 5.0%, and that the overall unemployment rate in the UK for the 3 months to August rose from 7.9% to 8.1%; the worst level seen in the UK since 1996.
This morning will see the release of the UK’s trade balance figure for August; which is expected to reinforce the UK’s huge trade deficit; as a result of the massive difference between the volumes of imported goods as compared to the volume of exported goods.
The Euro gained against the US Dollar yesterday, but finished about the same against the Pound in the currency exchange market. The EUR/USD exchange rate picked up across the day, from 1.3688 at the morning’s open, to trade up at 1.3809 by the market close. There was some unexpected positive data released form Europe, with Augusts’ Euro-zone industrial production figures showing an upturn in both the annual and monthly levels; from 4.4% to 5.3%, and from 1.1% to 1.2% respectively. This did help the Euro currency, as the stronger European member states such as Germany are reliant on industry for economic stability and growth.
Today has already seen the release of the ECB’s monthly report for October; which was in no way positive for the Euro-zone. The report stated that growth in the Euro region would remain ‘moderate’ for the rest of the year, that there are ‘increasing downside risks’ and also that inflation will remain ‘clearly above 2.0%’ for the time being.
The US Dollar fell against both the Euro and the Pound yesterday, and the currency was probably not helped by release of the minutes from the Federal Reserve’s last policy meeting, which showed that 2 policy-makers voted for extra monetary stimulus as they felt that the weak economy justified the addition of more funding. The minutes also showed that 3 policy-makers voted against the shifting of $400 billion towards extending the maturity date of the central bank’s security holdings, the largest dissent majority seen by an FOMC voting board in over 20 years. In terms of growth, the minutes stated that the Fed sees a ‘bleak economic outlook’ and there are ‘significant downside risks’ to future growth.
This afternoon will see the release of the latest trade balance numbers from the US. Like the UK, the US has a fairly large trade deficit; and the market forecast is for the latest reading to show a bigger increase in the gap between import and export activity.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning will see the release of the UK’s trade balance figure for August; which is expected to reinforce the UK’s huge trade deficit; as a result of the massive difference between the volumes of imported goods as compared to the volume of exported goods.
The Euro gained against the US Dollar yesterday, but finished about the same against the Pound in the currency exchange market. The EUR/USD exchange rate picked up across the day, from 1.3688 at the morning’s open, to trade up at 1.3809 by the market close. There was some unexpected positive data released form Europe, with Augusts’ Euro-zone industrial production figures showing an upturn in both the annual and monthly levels; from 4.4% to 5.3%, and from 1.1% to 1.2% respectively. This did help the Euro currency, as the stronger European member states such as Germany are reliant on industry for economic stability and growth.
Today has already seen the release of the ECB’s monthly report for October; which was in no way positive for the Euro-zone. The report stated that growth in the Euro region would remain ‘moderate’ for the rest of the year, that there are ‘increasing downside risks’ and also that inflation will remain ‘clearly above 2.0%’ for the time being.
The US Dollar fell against both the Euro and the Pound yesterday, and the currency was probably not helped by release of the minutes from the Federal Reserve’s last policy meeting, which showed that 2 policy-makers voted for extra monetary stimulus as they felt that the weak economy justified the addition of more funding. The minutes also showed that 3 policy-makers voted against the shifting of $400 billion towards extending the maturity date of the central bank’s security holdings, the largest dissent majority seen by an FOMC voting board in over 20 years. In terms of growth, the minutes stated that the Fed sees a ‘bleak economic outlook’ and there are ‘significant downside risks’ to future growth.
This afternoon will see the release of the latest trade balance numbers from the US. Like the UK, the US has a fairly large trade deficit; and the market forecast is for the latest reading to show a bigger increase in the gap between import and export activity.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Wednesday 12 October 2011
Foreign Exchange Daily Market Update 12/10/11
The Pound fell lower against both the Euro and the US Dollar in the foreign exchange market yesterday following some fairly disappointing economic data, and an anticipation of further negative new today. The GBP/EUR exchange rate fell from the morning’s open at 1.1472 down to 1.1416 by the market close. The GBP/USD exchange rate also came lower across the day, dropping from 1.5644 in the morning, to trade at 1.5597 by the close of the UK business day. Figures released from the UK yesterday showed that manufacturing production fell both annually and monthly, from 2.6% to 1.5% and from 0.2% to -0.3% respectively. Industrial production also dropped annually; from -0.9% to -1.0%, but there was a slight increase month-on-month from -0.4% to +0.2%. The latest NIESR GDP estimate for September did little to inspire any confidence in the currency despite a reading of 0.5%, up from the previous reading at 0.2%.
Today will focus solely on the UK’s labour market, with the expectation to see an increase in both the jobless claims number and claimant count rate for August; which could see the Pound lose further ground. More worrying though is the market forecast for an increase in the ILO unemployment rate for the 3 months to August, from 7.9% to 8.0%. With the prospect of further government cutbacks to come in the UK, a weakening jobs market could hinder any prospects of an increase in overall economic growth over the coming months.
The Euro gained against the Pound, and also advanced slightly against the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate finished the day trading at 1.3658, a slight improvement on the morning’s open at 1.3636. There was no significant economic data released from Europe yesterday, which may account for the fairly narrow trading range against the Dollar. There was some positive news for Greece though; with an agreement reached which will see the debt-stricken nation receive a further round of funding to try and enable it to find its feet once again.
Today will see the release of Augusts’ Euro-zone industrial production figures, with the expectation for a drop in both the annual and monthly level, which could see the Euro trade slightly lower, as the stronger nations within Europe such as Germany, do rely heavily on their industrial sector.
The US Dollar advanced against the Pound, but came slightly lower against the Euro yesterday. With no economic data of note released form the US yesterday; the slight drop against the Euro could be attributed to a small increase in market confidence towards Europe with Greece receiving access to further refunding, and the gain against the Pound due to poor economic data released from the UK.
The Dollar could well take direction from the release of the minutes from the Federal Reserve’s last policy meeting later on today. The minutes should show the central bank’s reasoning behind diverting $400 billion to extending the maturity date of the securities it holds, and also should give some insight into the FOMC’s view in regards to economic growth and inflation over the coming months.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Today will focus solely on the UK’s labour market, with the expectation to see an increase in both the jobless claims number and claimant count rate for August; which could see the Pound lose further ground. More worrying though is the market forecast for an increase in the ILO unemployment rate for the 3 months to August, from 7.9% to 8.0%. With the prospect of further government cutbacks to come in the UK, a weakening jobs market could hinder any prospects of an increase in overall economic growth over the coming months.
The Euro gained against the Pound, and also advanced slightly against the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate finished the day trading at 1.3658, a slight improvement on the morning’s open at 1.3636. There was no significant economic data released from Europe yesterday, which may account for the fairly narrow trading range against the Dollar. There was some positive news for Greece though; with an agreement reached which will see the debt-stricken nation receive a further round of funding to try and enable it to find its feet once again.
Today will see the release of Augusts’ Euro-zone industrial production figures, with the expectation for a drop in both the annual and monthly level, which could see the Euro trade slightly lower, as the stronger nations within Europe such as Germany, do rely heavily on their industrial sector.
The US Dollar advanced against the Pound, but came slightly lower against the Euro yesterday. With no economic data of note released form the US yesterday; the slight drop against the Euro could be attributed to a small increase in market confidence towards Europe with Greece receiving access to further refunding, and the gain against the Pound due to poor economic data released from the UK.
The Dollar could well take direction from the release of the minutes from the Federal Reserve’s last policy meeting later on today. The minutes should show the central bank’s reasoning behind diverting $400 billion to extending the maturity date of the securities it holds, and also should give some insight into the FOMC’s view in regards to economic growth and inflation over the coming months.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Tuesday 11 October 2011
Foreign Exchange Daily Market Update 11/10/11
The Pound finished yesterday lower against the Euro; but higher against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate fell across the day, from 1.1544 at the morning’s open down to 1.1459 by the day’s close. The GBP/USD exchange rate however, picked up from 1.5620 at the market open to trade up at 1.5682 by the close of the UK business day. There were no significant releases in terms of economic data from the UK yesterday, with market movement being based on shifts in risk sentiment, and also news from the worlds other major economies.
The early hours of this morning has seen the release of September’s RICS house price balance figure, which held steady at -23%. Later on today will see Augusts’ industrial and manufacturing production figures cross the wires, with the market forecast for a slight drop in both readings; which is not a positive sign for the overall UK economy, but should not affect the currency too heavily. This afternoon’s release of the latest GDP estimate from the NIESR may affect the Pound. With the market expecting a reading of around 0.2% for September, any downward revision to this could see the Pound come under fierce pressure.
The Euro gained against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate moved up throughout the day, from the morning’s open at 1.3531 to trade up at 1.3684 by the day’s close. This was despite disappointing Euro-zone Sentix investor confidence figures for October, which showed an increase in negative sentiment, the reading dropping from -15.4 down to -18.5.
There are no scheduled data events of note for Europe today, leaving the currency open to data from the UK and the US, and any potential developments in regards to Euro-zone debt and re-financing.
The US Dollar lost ground against the Pound and the Euro yesterday. There was no economic data released from the US due to it being a non-trading day (Columbus Day).
Today will see the release of the minutes from the Federal Reserve’s last policy meeting on the 20th September. The market will look to gain some sense of direction and overall sentiment from the central bank in terms of future policy, and also the prospects for economic growth and inflation. The Dollar could take direction from this release, with market participants eager to understand the Federal Reserve’s thinking behind adding an additional $400 billion to extend the maturity dates of all it’s security holdings, and also how the central bank plans to combat a weak housing and labour market.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The early hours of this morning has seen the release of September’s RICS house price balance figure, which held steady at -23%. Later on today will see Augusts’ industrial and manufacturing production figures cross the wires, with the market forecast for a slight drop in both readings; which is not a positive sign for the overall UK economy, but should not affect the currency too heavily. This afternoon’s release of the latest GDP estimate from the NIESR may affect the Pound. With the market expecting a reading of around 0.2% for September, any downward revision to this could see the Pound come under fierce pressure.
The Euro gained against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate moved up throughout the day, from the morning’s open at 1.3531 to trade up at 1.3684 by the day’s close. This was despite disappointing Euro-zone Sentix investor confidence figures for October, which showed an increase in negative sentiment, the reading dropping from -15.4 down to -18.5.
There are no scheduled data events of note for Europe today, leaving the currency open to data from the UK and the US, and any potential developments in regards to Euro-zone debt and re-financing.
The US Dollar lost ground against the Pound and the Euro yesterday. There was no economic data released from the US due to it being a non-trading day (Columbus Day).
Today will see the release of the minutes from the Federal Reserve’s last policy meeting on the 20th September. The market will look to gain some sense of direction and overall sentiment from the central bank in terms of future policy, and also the prospects for economic growth and inflation. The Dollar could take direction from this release, with market participants eager to understand the Federal Reserve’s thinking behind adding an additional $400 billion to extend the maturity dates of all it’s security holdings, and also how the central bank plans to combat a weak housing and labour market.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Thursday 6 October 2011
Foreign Exchange Daily Market Update 06/10/11
The Pound finished a touch lower against the Euro, but slightly higher against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate did pick up early on from the morning’s open at 1.1597, breaking through 1.1600 only to fall back to 1.1589 by the end of the UK business day. The GBP/USD exchange rate finished the day at 1.5434, up from the morning’s open at 1.5421. Despite positive PMI services figures for September, which saw the index reading pick up to 52.9 from 51.1; the overall feeling from the UK was negative, with the release of the final reading of 2nd quarter GDP figures. The final reading showed the quarterly growth rate as 0.1%, down from 0.2%, and the annual growth rate revised down to 0.6%; lower than the previous reading at 0.7% This is not positive news for the UK economy, but may have some positive connotations as it will increase pressure on the Bank of England to add further monetary stimulus to try and increase growth prospects.
The main focus today for the UK will be on the Bank of England’s policy meeting. Despite the market forecast being for no change in either the interest rate or asset purchasing target; there is increasing pressure on the central bank to add some further stimulus, particularly after yesterday’s GDP figures. It may well be though, that the currency will take better direction from the minutes release on Wednesday, 2 weeks after today’s decision; as the minutes from the meeting will give insight into the voting majorities, and the Monetary Policy Committee’s current stance towards growth and inflation.
The Euro ended the day slightly higher against the Pound, and also against the US Dollar in the currency exchange market. The EUR/USD exchange rate moved up slightly throughout the day, from the morning’s open at 1.3296, to trade at 1.3317 by the day’s close. All the economic data released from Europe yesterday however was negative, with German and Euro-zone PMI services figures for September all reporting declines, as well as a downturn in the composite figure fro Euro-zone PMI. The negative feeling was compounded with very disappointing Euro-zone retail sales figures, showing a drop annually from -0.4 to -0.1%, and month-on-month from +0.2% to -0.3%.
Today will see the release of German factory orders for August, with the market expectation for a sharp decline in the annual level, but a marked improvement in the monthly figure. However, the main focus is most certainly the European Central Bank’s rate decision; with many market experts having conflicting expectations in terms of what decision will be reached. The majority of analysts are forecasting no change in the base interest rate; but with the overnight-index swaps market pricing in rate cuts before the end of the year, and also many banks and countries hoping for a reduction in borrowing costs, there may well be a surprise cut.
The US Dollar did fall slightly against the Euro and the Pound yesterday; but there was some buoyant news released from the US. September’s ADP employment change figures showed that 91,000 jobs were added throughout the month, up from the previous month’s level of 89,000 – which was a huge increase amid market forecast for a sharp decline in the reading.
There are no scheduled economic figures of note for the US today, and with two big potential risk-events in the UK and Europe, the currency could well see some choppy trading.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The main focus today for the UK will be on the Bank of England’s policy meeting. Despite the market forecast being for no change in either the interest rate or asset purchasing target; there is increasing pressure on the central bank to add some further stimulus, particularly after yesterday’s GDP figures. It may well be though, that the currency will take better direction from the minutes release on Wednesday, 2 weeks after today’s decision; as the minutes from the meeting will give insight into the voting majorities, and the Monetary Policy Committee’s current stance towards growth and inflation.
The Euro ended the day slightly higher against the Pound, and also against the US Dollar in the currency exchange market. The EUR/USD exchange rate moved up slightly throughout the day, from the morning’s open at 1.3296, to trade at 1.3317 by the day’s close. All the economic data released from Europe yesterday however was negative, with German and Euro-zone PMI services figures for September all reporting declines, as well as a downturn in the composite figure fro Euro-zone PMI. The negative feeling was compounded with very disappointing Euro-zone retail sales figures, showing a drop annually from -0.4 to -0.1%, and month-on-month from +0.2% to -0.3%.
Today will see the release of German factory orders for August, with the market expectation for a sharp decline in the annual level, but a marked improvement in the monthly figure. However, the main focus is most certainly the European Central Bank’s rate decision; with many market experts having conflicting expectations in terms of what decision will be reached. The majority of analysts are forecasting no change in the base interest rate; but with the overnight-index swaps market pricing in rate cuts before the end of the year, and also many banks and countries hoping for a reduction in borrowing costs, there may well be a surprise cut.
The US Dollar did fall slightly against the Euro and the Pound yesterday; but there was some buoyant news released from the US. September’s ADP employment change figures showed that 91,000 jobs were added throughout the month, up from the previous month’s level of 89,000 – which was a huge increase amid market forecast for a sharp decline in the reading.
There are no scheduled economic figures of note for the US today, and with two big potential risk-events in the UK and Europe, the currency could well see some choppy trading.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Wednesday 5 October 2011
Foreign Exchange Daily Market Update 05/10/11
The Pound fell against the Euro; but ended yesterday almost unchanged against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate fell across the day from the mornings open at 1.1711, down to 1.1577 by the end of the UK business day. The GBP/USD exchange rate however, closed at 1.5411, almost exactly at the market open rate of 1.5409, following a day of choppy trading. The sole piece of economic data released from the UK yesterday saw PMI construction figures for September report a drop; from 52.6 down to 50.1.
This morning has seen the release of PMI services figures for September which saw a positive gain; from 51.1 to 52.9, but more importantly was the release of the final reading of 2nd quarter GDP for the UK. The result was a downward revision, with the quarterly growth rate at 0.1%, down from 0.2%, and the annual growth rate falling from the previous reading at 0.7% down to 0.6%. This is not positive news for the UK economy, but may have some positive connotations as it will increase pressure on the Bank of England to add further monetary stimulus to try an increase growth prospects.
The Euro gained against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate moved up across the course of the day from 1.3157 at the mornings open, to trade at 1.3311 by the day’s close. The European economic docket yesterday focused on euro-zone producer prices, with the PPI index showing a drop in prices, annually from 6.15 to 5.89%, and month-on-month from 0.5% to -0.1%. This may be positive for Europe, as lower producer prices may indicate lower costs passed on to consumers, which may go some way to keep inflation subdued.
Today has already seen German and Euro-zone PMI figures report lower for September, but the figures seem to have had little effect on the market. Later on this morning, Euro-zone retail sales for August will cross the wires, with the market forecast for a drop in both the annual and monthly levels, which could put pressure on the Euro; as lower retail sales is an indicator of slowing economic growth and lower consumer spending.
The US Dollar ended almost unchanged against the pound yesterday, but lost ground against the Euro. The currency was not helped by disappointing factory orders figures for August, which showed a sharp drop from 2.1% down to -0.2%. This figure was overshadowed by Federal Reserve Chairman Ben Bernanke’s appearance in front of the joint economic committee, during which he stated that The Federal Reserve is prepared to take further steps to help an economy that is "close to faltering," Fed chairman Ben Bernanke said on Tuesday in his bleakest assessment yet of the fragile U.S. recovery. Citing anaemic employment, depressed confidence, and financial risks from Europe, Bernanke urged lawmakers not to cut spending too quickly in the short term even as they grapple with trimming the long-run budget deficit. Bernanke said "The Committee will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in the context of price stability,".
Today will see the release of Septembers’ ADP employment change figures, which are expected to show less jobs added than the previous month, and also the latest ISM non-manufacturing numbers for September; with the market forecast for a decrease in the index level; which would not be positive for the Dollar.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning has seen the release of PMI services figures for September which saw a positive gain; from 51.1 to 52.9, but more importantly was the release of the final reading of 2nd quarter GDP for the UK. The result was a downward revision, with the quarterly growth rate at 0.1%, down from 0.2%, and the annual growth rate falling from the previous reading at 0.7% down to 0.6%. This is not positive news for the UK economy, but may have some positive connotations as it will increase pressure on the Bank of England to add further monetary stimulus to try an increase growth prospects.
The Euro gained against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate moved up across the course of the day from 1.3157 at the mornings open, to trade at 1.3311 by the day’s close. The European economic docket yesterday focused on euro-zone producer prices, with the PPI index showing a drop in prices, annually from 6.15 to 5.89%, and month-on-month from 0.5% to -0.1%. This may be positive for Europe, as lower producer prices may indicate lower costs passed on to consumers, which may go some way to keep inflation subdued.
Today has already seen German and Euro-zone PMI figures report lower for September, but the figures seem to have had little effect on the market. Later on this morning, Euro-zone retail sales for August will cross the wires, with the market forecast for a drop in both the annual and monthly levels, which could put pressure on the Euro; as lower retail sales is an indicator of slowing economic growth and lower consumer spending.
The US Dollar ended almost unchanged against the pound yesterday, but lost ground against the Euro. The currency was not helped by disappointing factory orders figures for August, which showed a sharp drop from 2.1% down to -0.2%. This figure was overshadowed by Federal Reserve Chairman Ben Bernanke’s appearance in front of the joint economic committee, during which he stated that The Federal Reserve is prepared to take further steps to help an economy that is "close to faltering," Fed chairman Ben Bernanke said on Tuesday in his bleakest assessment yet of the fragile U.S. recovery. Citing anaemic employment, depressed confidence, and financial risks from Europe, Bernanke urged lawmakers not to cut spending too quickly in the short term even as they grapple with trimming the long-run budget deficit. Bernanke said "The Committee will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in the context of price stability,".
Today will see the release of Septembers’ ADP employment change figures, which are expected to show less jobs added than the previous month, and also the latest ISM non-manufacturing numbers for September; with the market forecast for a decrease in the index level; which would not be positive for the Dollar.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Tuesday 4 October 2011
Foreign Exchange Daily Market Update 04/10/11
The Pound made a small gain against the Euro; but fell against the US dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate picked up from the morning’s open at 1.1639 to trade at 1.1657 by the day’s close. There was further upward movement after the end of the UK business day, with the rate moving up towards 1.1700 territory. The GBP/USD exchange rate however fell across Monday, from 1.5544 at the day’s open, down to 1.5474 by the market close. The sole piece of economic data released from the UK yesterday showed that PMI manufacturing increased in September, up to 51.1 from the previous month’s level of 49.4.
This morning will see the release of September’s PMI construction figure, with the market forecast for a slight drop in the index; but with yesterday’s manufacturing figure coming in above analysts’ estimates; the pound could benefit slightly from another improved figure.
The Euro lost ground against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate slipped from the morning’s open at 1.3355, to trade at 1.3274 by the end of the UK business day, and continued to drop overnight. There was positive news in terms of economic data from Europe yesterday, with German and Euro-zone PMI manufacturing figures both increasing in September, from 50.0 to 50.3 and from 48.4 to 48.5 respectively; but the currency is coming under huge pressure due to the ongoing Greek debt crisis. Greece has already missed its deficit target for 2012, and European officials are still yet to agree terms for Finland’s demand for extra collateral to underpin bailout loans, which would go some way to finding resolution to ensure Greece receives its sixth bailout payment. The knock-on effect of a default is what has the market spooked, and it is being mooted that the ECB will have to become actively involved in security and bond buying to try and protect European banks from any damaging effects.
Today will see the release of Euro-zone PPI figures for August, with the expectation for a drop in both the annual and monthly levels, which would not be positive news for the currency, and could, heap further pressure onto the Euro; which has fallen rapidly across the market in the last 24 hours.
The US Dollar once again has returned to form, and benefits from its ‘safe-haven’ status with the increased woes across Europe. As the market is starting to expect some from of European recession, the Dollar gained across the board; and this could well be attributed to a shift in risk sentiment towards the currency. As well as the Euro-zone and the UK reporting manufacturing figures yesterday, the US released September’s ISM manufacturing figures, which showed a positive gain, from 50.6 to 51.6.
The US will release Augusts’ factory orders figures later today; and despite a good gain in yesterday’s manufacturing index, the market forecast is for a rapid drop in factory orders. Even if this is the case, the figure is likely to be overshadowed by Federal Reserve Chairman Ben Bernanke’s appearance in front of the joint Economic Committee today. Chairman Bernanke will be grilled on the ‘economic outlook’ for the US, and is likely to face questions on growth prospects, ‘Operation Twist’ and the US’s bank exposure to Europe; with the currency primed to take direction from the Chairman’s comments.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning will see the release of September’s PMI construction figure, with the market forecast for a slight drop in the index; but with yesterday’s manufacturing figure coming in above analysts’ estimates; the pound could benefit slightly from another improved figure.
The Euro lost ground against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate slipped from the morning’s open at 1.3355, to trade at 1.3274 by the end of the UK business day, and continued to drop overnight. There was positive news in terms of economic data from Europe yesterday, with German and Euro-zone PMI manufacturing figures both increasing in September, from 50.0 to 50.3 and from 48.4 to 48.5 respectively; but the currency is coming under huge pressure due to the ongoing Greek debt crisis. Greece has already missed its deficit target for 2012, and European officials are still yet to agree terms for Finland’s demand for extra collateral to underpin bailout loans, which would go some way to finding resolution to ensure Greece receives its sixth bailout payment. The knock-on effect of a default is what has the market spooked, and it is being mooted that the ECB will have to become actively involved in security and bond buying to try and protect European banks from any damaging effects.
Today will see the release of Euro-zone PPI figures for August, with the expectation for a drop in both the annual and monthly levels, which would not be positive news for the currency, and could, heap further pressure onto the Euro; which has fallen rapidly across the market in the last 24 hours.
The US Dollar once again has returned to form, and benefits from its ‘safe-haven’ status with the increased woes across Europe. As the market is starting to expect some from of European recession, the Dollar gained across the board; and this could well be attributed to a shift in risk sentiment towards the currency. As well as the Euro-zone and the UK reporting manufacturing figures yesterday, the US released September’s ISM manufacturing figures, which showed a positive gain, from 50.6 to 51.6.
The US will release Augusts’ factory orders figures later today; and despite a good gain in yesterday’s manufacturing index, the market forecast is for a rapid drop in factory orders. Even if this is the case, the figure is likely to be overshadowed by Federal Reserve Chairman Ben Bernanke’s appearance in front of the joint Economic Committee today. Chairman Bernanke will be grilled on the ‘economic outlook’ for the US, and is likely to face questions on growth prospects, ‘Operation Twist’ and the US’s bank exposure to Europe; with the currency primed to take direction from the Chairman’s comments.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Monday 3 October 2011
Foreign Exchange Daily Market Update 03/10/11
The Pound ended last week higher against the Euro in the foreign exchange market; and also reversed some of the previous week’s losses against the US Dollar. The GBP/EUR exchange rate moved up throughout the week, from Monday’s open at 1.1506 to trade at 1.1623 by the close of the UK business day on Friday. The GBP/USD exchange rate followed a similar patter, advancing from 1.5451 at the open on Monday, hitting a high of 1.5713 on Thursday before falling slightly to end the week at 1.5637 by Friday’s close. There was not much in terms of economic data from the UK last week, with the highlights being a drop in CBI reported sales for September, from -14 to -15; Augusts’ mortgage approvals showing a good gain from 49,600 to 52,400, and net consumer credit increasing from 0.3 billion pounds to 0.5 billion pounds.
The week ahead is also fairly light in terms of data releases; but does contain some high-level figures. September’s PMI figures for manufacturing, construction, and services will be released on Monday, Tuesday, and Wednesday respectively. Wednesday will also see the release of the final reading of 2nd quarter Gross Domestic Product (GDP) from the UK. The market expectation is for the quarterly growth rate to remain at 0.2%, and annually at 0.7%; which is not hugely impressive, but it will be crucial for the figure to not see any downward revisions to help the Pound maintain its position within the market. Thursday will see the Bank of England announce this month’s interest rate and asset purchase target, with the market forecast for no change in either level. More key will be the minutes release on Wednesday, 2 weeks after the rate decision; which will give insight into the voting majorities, and the current stance towards growth and inflation from the central bank. The week will close out on Friday with September’s PPI figures, which are expected to show little change, and shouldn’t have too much effect on the market.
The Euro fell against both the Pound and the US Dollar last week in the currency exchange market. The EUR/USD exchange rate fell from Monday’s open at 1.3516, to trade at 1.3452 by Friday’s close; despite hitting a high of 1.3689 on Wednesday. Economic data released form Europe last week did little to inject positive sentiment towards the currency, with Septembers German IFO figures for business climate, current assessment and expectations all coming lower. October’s German GfK consumer confidence survey showed no change, with the figure holding at 5.2. There was some more positive news on Thursday, with the German unemployment rate falling from 7.0% to 6.9%, and the unemployment change figures showing a reduction from -9,000 to -26,000 claims. Any increased positivity though was countered with a host of negative data in terms of Euro-zone consumer, industrial, services and economic confidence indices, which all reported drops for September. The European Central Bank (ECB) may also face additional pressure, with Friday’s release of September’s Euro-zone CPI (inflation) figure showing a predicated increase in price growth from 2.5% to 3.0%.
Like the UK, the early week figures from Europe will focus on PMI, with German and Euro-zone manufacturing index figures set for release on Monday, then German and Euro-zone PMI services and the Euro-zone composite figure being released on Wednesday. Sandwiched in between these release on Tuesday will be Euro-zone PPI figures for August, with the market forecast for drops in both the annual and monthly level; which could benefit the Euro as lower producer prices usually translate to lower retail prices, which will ease pressure on cash-strapped consumers throughout the Euro-zone. Thursday’s German factory order figures will be somewhat over-shadowed by the ECB’s interest rate decision. The bank are under pressure to divert extra funds toward bond purchasing to prevent default and try to stimulate growth in some of the economically weak member nations, and with many analysts expecting a rate cut from the ECB before the end of the year; the post-decision press conference will be key for the market to gain a sense of the direction the central bank is considering taking over the coming months. The week will round off with Friday’s release of German industrial production figures for August. With Germany relying heavily on its manufacturing industry for economic growth; any sharp declines in this figure could prove problematic for the Euro.
The US Dollar lost ground against the Pound, but did advance slightly against the Euro across the course of last week. The Dollar had been benefitting in past weeks from its safe-haven status, and with increased turmoil in Europe it had been gaining rapidly across the board. This was reversed across the past week, particularly against the Pound. The US economic docket produced a fairly mixed picture; with the Chicago Fed national activity index declining, from 0.06 to 0.43, but with US consumer confidence for September showing a slight increase from 45.2 to 45.4. Durable goods orders numbers fell heavily, from 4.1% to -0.1% for August, but the 2nd quarter GDP figures showed an increase in economic growth. The annual rate rose from 1.0% to 1.3%, with personal consumption also increasing from 0.4% to 0.7%. The week rounded off on a positive note; with Septembers University of Michigan confidence index showing a good gain, from 57.8 to 59.4, which did see the Dollar make appositive move in the market.
This week is fairly data heavy for the US. Monday will see ISM manufacturing and construction spending figures for September cross the wires. Tuesday will see Augusts’ factory orders numbers released, along with the main data event of the week; Federal Reserve Chairman Ben Bernanke testifying in front of the Joint Economic Committee. Wednesday see the release of September’s ADP employment change figures, along with ISM non-manufacturing figures, and the week will round off on Friday with Augusts’ consumer credit numbers, employment rate figures, and the potentially market-moving non-farm payroll figures. No-farm payroll numbers are renowned for being notoriously hard to predict accurately, hence upon release the market could well see sharp movement against the US Dollar.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The week ahead is also fairly light in terms of data releases; but does contain some high-level figures. September’s PMI figures for manufacturing, construction, and services will be released on Monday, Tuesday, and Wednesday respectively. Wednesday will also see the release of the final reading of 2nd quarter Gross Domestic Product (GDP) from the UK. The market expectation is for the quarterly growth rate to remain at 0.2%, and annually at 0.7%; which is not hugely impressive, but it will be crucial for the figure to not see any downward revisions to help the Pound maintain its position within the market. Thursday will see the Bank of England announce this month’s interest rate and asset purchase target, with the market forecast for no change in either level. More key will be the minutes release on Wednesday, 2 weeks after the rate decision; which will give insight into the voting majorities, and the current stance towards growth and inflation from the central bank. The week will close out on Friday with September’s PPI figures, which are expected to show little change, and shouldn’t have too much effect on the market.
The Euro fell against both the Pound and the US Dollar last week in the currency exchange market. The EUR/USD exchange rate fell from Monday’s open at 1.3516, to trade at 1.3452 by Friday’s close; despite hitting a high of 1.3689 on Wednesday. Economic data released form Europe last week did little to inject positive sentiment towards the currency, with Septembers German IFO figures for business climate, current assessment and expectations all coming lower. October’s German GfK consumer confidence survey showed no change, with the figure holding at 5.2. There was some more positive news on Thursday, with the German unemployment rate falling from 7.0% to 6.9%, and the unemployment change figures showing a reduction from -9,000 to -26,000 claims. Any increased positivity though was countered with a host of negative data in terms of Euro-zone consumer, industrial, services and economic confidence indices, which all reported drops for September. The European Central Bank (ECB) may also face additional pressure, with Friday’s release of September’s Euro-zone CPI (inflation) figure showing a predicated increase in price growth from 2.5% to 3.0%.
Like the UK, the early week figures from Europe will focus on PMI, with German and Euro-zone manufacturing index figures set for release on Monday, then German and Euro-zone PMI services and the Euro-zone composite figure being released on Wednesday. Sandwiched in between these release on Tuesday will be Euro-zone PPI figures for August, with the market forecast for drops in both the annual and monthly level; which could benefit the Euro as lower producer prices usually translate to lower retail prices, which will ease pressure on cash-strapped consumers throughout the Euro-zone. Thursday’s German factory order figures will be somewhat over-shadowed by the ECB’s interest rate decision. The bank are under pressure to divert extra funds toward bond purchasing to prevent default and try to stimulate growth in some of the economically weak member nations, and with many analysts expecting a rate cut from the ECB before the end of the year; the post-decision press conference will be key for the market to gain a sense of the direction the central bank is considering taking over the coming months. The week will round off with Friday’s release of German industrial production figures for August. With Germany relying heavily on its manufacturing industry for economic growth; any sharp declines in this figure could prove problematic for the Euro.
The US Dollar lost ground against the Pound, but did advance slightly against the Euro across the course of last week. The Dollar had been benefitting in past weeks from its safe-haven status, and with increased turmoil in Europe it had been gaining rapidly across the board. This was reversed across the past week, particularly against the Pound. The US economic docket produced a fairly mixed picture; with the Chicago Fed national activity index declining, from 0.06 to 0.43, but with US consumer confidence for September showing a slight increase from 45.2 to 45.4. Durable goods orders numbers fell heavily, from 4.1% to -0.1% for August, but the 2nd quarter GDP figures showed an increase in economic growth. The annual rate rose from 1.0% to 1.3%, with personal consumption also increasing from 0.4% to 0.7%. The week rounded off on a positive note; with Septembers University of Michigan confidence index showing a good gain, from 57.8 to 59.4, which did see the Dollar make appositive move in the market.
This week is fairly data heavy for the US. Monday will see ISM manufacturing and construction spending figures for September cross the wires. Tuesday will see Augusts’ factory orders numbers released, along with the main data event of the week; Federal Reserve Chairman Ben Bernanke testifying in front of the Joint Economic Committee. Wednesday see the release of September’s ADP employment change figures, along with ISM non-manufacturing figures, and the week will round off on Friday with Augusts’ consumer credit numbers, employment rate figures, and the potentially market-moving non-farm payroll figures. No-farm payroll numbers are renowned for being notoriously hard to predict accurately, hence upon release the market could well see sharp movement against the US Dollar.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Thursday 29 September 2011
Foreign Exchange Daily Market Update 29/09/11
The Pound finished yesterday slightly higher against the Euro, but a touch lower against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate which opened at 1.1472, moved up to close at 1.1486 following some very choppy price-action. The GBP/USD exchange rate which had shown gains over the past 3 days fell slightly from the morning’s open at 1.5648 to trade at 1.5645 by the end of the UK business day. There was no significant economic data released from the UK yesterday, which may explain the narrow overall change in the markets.
This morning has already sent the release of Augusts’ mortgage approval figures, along with net consumer credit numbers which showed that mortgage approvals increased from 49,600 to 52,400, and net consumer credit rose from 0.3 billion pounds to 0.5 billion pounds.
The Euro lost some ground against both the Pound and the US Dollar in the currency exchange market yesterday; the EUR/USD exchange rate falling from 1.3638, down to 1.3619 throughout the day. Yesterday saw the release of German CPI (inflation) figures for September, with the resulting numbers showing that price-growth increased annually, from 2.4% to 2.6%, and also month-on-month from 0.0% to 0.1%. This will not have been welcome news for the European Central Bank (ECB), who justified interest rate-hikes earlier in the year with the mandate of controlling inflation, but with levels rising still; it will pose a problem to the ECB.
Today has seen the release of German labour market figures, with the unemployment rate for September falling from 8.0% to 7.9%, and the unemployment change figures showing a move from -9,000 to -26,000. Later on this morning will see the release of Euro-zone consumer, economic and industrial confidence numbers, with the market forecast for a minimal change in all three indices; but any sharp changes could affect the Euro currency.
The US Dollar made a small pullback against the Euro and the Pound after 3 days of losses. This was despite very disappointing durable goods orders numbers for August, which showed a huge drop in the index reading, from 4.1% down to -0.1%. The US Dollar may have benefitted from the lack of agreement to a decision for refinancing in Europe, to aid the debt woes in Greece and other struggling nations, its status as a safe-haven currency helping it in times of market panic.
The US economic docket contains some very high-level data today, with the release of 2nd quarter GDP figures, along with personal consumption and pending home sales numbers. The market forecast is for an increase in US annualised growth, from 1.0% up to 1.2%, anything short of this could well put the Dollar under pressure, particularly with the Federal Reserve’s decision to direct $400 billion into bond purchasing to try and ensure economic stability and protect future growth.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning has already sent the release of Augusts’ mortgage approval figures, along with net consumer credit numbers which showed that mortgage approvals increased from 49,600 to 52,400, and net consumer credit rose from 0.3 billion pounds to 0.5 billion pounds.
The Euro lost some ground against both the Pound and the US Dollar in the currency exchange market yesterday; the EUR/USD exchange rate falling from 1.3638, down to 1.3619 throughout the day. Yesterday saw the release of German CPI (inflation) figures for September, with the resulting numbers showing that price-growth increased annually, from 2.4% to 2.6%, and also month-on-month from 0.0% to 0.1%. This will not have been welcome news for the European Central Bank (ECB), who justified interest rate-hikes earlier in the year with the mandate of controlling inflation, but with levels rising still; it will pose a problem to the ECB.
Today has seen the release of German labour market figures, with the unemployment rate for September falling from 8.0% to 7.9%, and the unemployment change figures showing a move from -9,000 to -26,000. Later on this morning will see the release of Euro-zone consumer, economic and industrial confidence numbers, with the market forecast for a minimal change in all three indices; but any sharp changes could affect the Euro currency.
The US Dollar made a small pullback against the Euro and the Pound after 3 days of losses. This was despite very disappointing durable goods orders numbers for August, which showed a huge drop in the index reading, from 4.1% down to -0.1%. The US Dollar may have benefitted from the lack of agreement to a decision for refinancing in Europe, to aid the debt woes in Greece and other struggling nations, its status as a safe-haven currency helping it in times of market panic.
The US economic docket contains some very high-level data today, with the release of 2nd quarter GDP figures, along with personal consumption and pending home sales numbers. The market forecast is for an increase in US annualised growth, from 1.0% up to 1.2%, anything short of this could well put the Dollar under pressure, particularly with the Federal Reserve’s decision to direct $400 billion into bond purchasing to try and ensure economic stability and protect future growth.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Wednesday 28 September 2011
Foreign Exchange Daily Market Update 28/09/11
The Pound closed higher against both the Euro and the US Dollar in the foreign exchange market for the second day running this week. The GBP/EUR exchange rate moved up slightly from the morning’s open at 1.1510 to trade up at 1.1526 by the day’s close following some choppy trading. The GBP/USD exchange rate though showed much better gains, opening at 1.5551, and moving up throughout the day to trade at 1.5687 by the close of the UK business day. The sole piece of economic data released from the UK wasn’t positive however, with September’s CBI reported sales number dropping from -14 to -15; in line with market forecast.
There are no scheduled economic data releases from the UK today; leaving the currency open to risk sentiment and news from the worlds other major economies.
The Euro fell slightly against the Pound, but gained some ground against the US dollar in the currency exchange market yesterday. The EUR/USD exchange rate climbed across the day, from 1.3511 at the market open; trading at 1.3609 by the day’s close. Yesterday’s data release from Europe saw October’s German GfK consumer confidence survey show no change from the previous month, the index reading holding steady at 5.2, which was directly in line with the market forecast, and as such had little effect on the currency market.
Today will see the release of German CPI (inflation) figures, with the market forecast for no change in the annual level of price-growth, but the monthly level is expected to drop slightly, which will ease some pressure on the European Central Bank in regards to inflation.
The US Dollar continued to lose ground against both the Euro and the Pound yesterday, the currency facing headwinds in light of some poor economic data, and also the possibility of a solution for the debt problems in Greece being reached, which has gone some way to ease worried of a crisis in the Euro-zone. Yesterday saw the release of September’s consumer confidence figures; which showed a small increase in positive sentiment from the previous months’ reading of 45.2. The current level was reported as moving up to 45.4; which was below the market forecast for a reading of closer to 46.0.
The US economic docket today will focus on Augusts’ durable goods orders figures, which are expected to have fallen rapidly, indicating that consumers are unwilling to part with their money for large-ticket, long-lasting items such as cars and televisions to focus on spending their money on more essential items. Should this be the case, it would ne an indication of an increase in negative sentiment, and could well weaken the Dollar slightly.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
There are no scheduled economic data releases from the UK today; leaving the currency open to risk sentiment and news from the worlds other major economies.
The Euro fell slightly against the Pound, but gained some ground against the US dollar in the currency exchange market yesterday. The EUR/USD exchange rate climbed across the day, from 1.3511 at the market open; trading at 1.3609 by the day’s close. Yesterday’s data release from Europe saw October’s German GfK consumer confidence survey show no change from the previous month, the index reading holding steady at 5.2, which was directly in line with the market forecast, and as such had little effect on the currency market.
Today will see the release of German CPI (inflation) figures, with the market forecast for no change in the annual level of price-growth, but the monthly level is expected to drop slightly, which will ease some pressure on the European Central Bank in regards to inflation.
The US Dollar continued to lose ground against both the Euro and the Pound yesterday, the currency facing headwinds in light of some poor economic data, and also the possibility of a solution for the debt problems in Greece being reached, which has gone some way to ease worried of a crisis in the Euro-zone. Yesterday saw the release of September’s consumer confidence figures; which showed a small increase in positive sentiment from the previous months’ reading of 45.2. The current level was reported as moving up to 45.4; which was below the market forecast for a reading of closer to 46.0.
The US economic docket today will focus on Augusts’ durable goods orders figures, which are expected to have fallen rapidly, indicating that consumers are unwilling to part with their money for large-ticket, long-lasting items such as cars and televisions to focus on spending their money on more essential items. Should this be the case, it would ne an indication of an increase in negative sentiment, and could well weaken the Dollar slightly.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Tuesday 27 September 2011
Foreign Exchange Daily Market Update 27/09/11
The Pound managed to claw back some ground in the foreign exchange market yesterday, by closing higher against both the Euro and the US Dollar. The GBP/EUR exchange rate which opened at 1.1506 did fall slightly during the day but closed up at 1.1517; with the GBP/USD exchange rate climbing throughout the day from 1.5451 to 1.5542 by the end of the UK trading day. There was no significant economic data released from the UK yesterday, with the currency gaining on further turbulence in Europe, and some weak data released from the US.
The sole piece of economic data to be released from the UK today is the CBI reported sales number for September, with the market forecast for a drop in the index from -14 to -15.
The Euro lost ground against the Pound, but gained on the US Dollar yesterday. The currency exchange market saw the Dollar face some pressure in light of poor economic data released from the nation, with the EUR/USD exchange rate moving up from 1.3416 at the market open; to trade up at 1.3494 by the end of the day. Yesterday saw the release of September’s German IFO figures for business climate, current assessment, and expectation figures; with all the indices showing a slight decrease, but reading better than the market forecast.
This morning has already seen the release of October’s German GfK consumer confidence survey; which showed no change in the reading of 5.2 amid calls for negative sentiment to increase, and the reading to drop down to 5.0. This is positive news for the Euro currency, taking into consideration the current market speculation over the involvement the European Central Bank may have in helping Greece, and the Euro-zone overall in funding it’s debts; which may not be taken positively by residents of the ‘stronger’ European nations.
The US Dollar lost ground against both the Euro and the Pound yesterday; with disappointing results from both the Chicago National Activity Index, which fell in August from -0.06 down to 0.43, and new home sales for August dropping from 302,000 down to 295,000, the month-on-month percentage level falling from -0.3% to -2.3%.
The US currency may face further headwinds today; with the release of September’s consumer confidence figures. The market forecast is for an increase in positive sentiment; but with a weak housing and labour market as well as slight drops in personal spending and retail sales figures; there is the possibility for a surprise in this reading. The figure will be released at 3:00pm UK time, and may cause some very sharp movements in the market.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The sole piece of economic data to be released from the UK today is the CBI reported sales number for September, with the market forecast for a drop in the index from -14 to -15.
The Euro lost ground against the Pound, but gained on the US Dollar yesterday. The currency exchange market saw the Dollar face some pressure in light of poor economic data released from the nation, with the EUR/USD exchange rate moving up from 1.3416 at the market open; to trade up at 1.3494 by the end of the day. Yesterday saw the release of September’s German IFO figures for business climate, current assessment, and expectation figures; with all the indices showing a slight decrease, but reading better than the market forecast.
This morning has already seen the release of October’s German GfK consumer confidence survey; which showed no change in the reading of 5.2 amid calls for negative sentiment to increase, and the reading to drop down to 5.0. This is positive news for the Euro currency, taking into consideration the current market speculation over the involvement the European Central Bank may have in helping Greece, and the Euro-zone overall in funding it’s debts; which may not be taken positively by residents of the ‘stronger’ European nations.
The US Dollar lost ground against both the Euro and the Pound yesterday; with disappointing results from both the Chicago National Activity Index, which fell in August from -0.06 down to 0.43, and new home sales for August dropping from 302,000 down to 295,000, the month-on-month percentage level falling from -0.3% to -2.3%.
The US currency may face further headwinds today; with the release of September’s consumer confidence figures. The market forecast is for an increase in positive sentiment; but with a weak housing and labour market as well as slight drops in personal spending and retail sales figures; there is the possibility for a surprise in this reading. The figure will be released at 3:00pm UK time, and may cause some very sharp movements in the market.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Monday 26 September 2011
Foreign Exchange Daily Market Update 26/09/11
The Pound closed out last week having lost significant ground against the US Dollar, and dropping slightly against the Euro in the foreign exchange market. The GBP/EUR exchange rate opened on Monday at 1.1494, falling to a low of 1.1380 on Wednesday before recovering to trade at 1.1456 by Friday’s close. The GBP/USD exchange rate however, showed no signs of recovery, falling from 1.5729 at Monday’s open down to 1.5471 by the close of the UK trading day on Friday. There was not a great deal of data released from the UK last week, with the most significant event being Wednesday’s release of the minutes from the Bank of England’s last policy meeting; which showed that the vote was unanimous to keep the base interest rate on hold, and the decision to keep the asset purchase target at its current level was by a majority of 8-1. Comment from the policy committee said the decision on whether to expand stimulus was “finely balanced’’ with an indication that weak economic conditions could see additional stimulus being added at some point; with the comment from policy-makers that it is “increasingly probable that further asset purchases to loosen monetary conditions would become warranted at some point’’. There was some slightly more positive news from the UK on Friday, with Augusts’ BBA loans for house purchase figures showing an increase from 33,734 to 35,226.
The UK’s economic docket for the week ahead will kick-off on Tuesday, with the release of September’s Nationwide house price figures which are expected to show a slight decrease annually, but there is the possibility of a rise in the monthly level. Tuesday will also see the release of September’s CBI reported sales figures, with the market forecast for a drop from -14 down to -15. There is nothing scheduled for Wednesday, with mortgage approvals and net consumer credit figures set to cross the wires on Thursday, and GfK consumer confidence figures for September will be released in the early hours of Friday morning, which will round off the week for the UK. The Pound is likely to come under more pressure from worsening sentiment across Europe as opposed to any drastic surprises in terms of economic data, with the US Dollar benefitting hugely from its ‘safe-haven’ status.
The Euro finished last week slightly higher against the Pound but lower against the US Dollar in the currency exchange market. The EUR/USD exchange rate fell from Monday’s open at 1.3684 to a low of 1.3385 on Thursday, before regaining slightly to trade at 1.3503 by the market close on Friday. In terms of economic data, the overall feeling from Europe was negative last week, with both the German and EU ZEW economic sentiment survey’s showing sharp declines, along with French, German, and Euro-zone PMI figures for manufacturing and services all falling drastically for the month of September. Euro-zone consumer confidence also fell for the month of September, from -16.5 to -18.9, to put further pressure on both the currency, and the region. As well as weak data, the currency has not been helped by speculation that the ECB may have to cut interest rates at its next meeting to try and prevent worsening economic conditions, with the EU still trying to come to a suitable plan for Greece’s current debt woes.
This morning has already seen the release of German IFO figures, with the drops in business climate, current assessment and expectation readings all not as bad as initially forecast, which is welcome news for the nation. Tuesday will see the release of German GfK consumer confidence figures for October, with the market forecast for a slight improvement. Wednesday will see German CPI (inflation) figures cross the wires, along with German Import Price index figures. Thursday continues to be dominated by German figures, with the release of the latest unemployment rate and unemployment change figures, as well as Euro-zone consumer, economic, industrial and services confidence readings, which have the potential to heap further downward pressure on the currency if the readings are poor. The European economic docket will round off on Friday with German retail sales figures being released along with the latest Euro-zone unemployment rate and Euro-zone CPI estimate for September.
The US Dollar continued to benefit from worsening conditions across Europe last week, as it showed good gains against both the Pound and the Euro. In terms of economic data, the overall picture was mixed from the US, with building permits showing a slight increase, but housing starts falling for the month of August. There was a marked improvement in existing home sales figures though, with the number shooting up to from 4.67 million to 5.03 million for August. The Dollar was boosted as well, at Wednesday’s Federal; Reserve meeting, when it was announced that the central bank will divert $400 billion to extend the overall maturity date on securities that it holds; with the intention to ‘’support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate’’.
Today will see the release of new home sales figures for August, with the market forecast for a slight decrease in the numbers, and also the release of the latest Chicago Fed national activity index. Tuesday could well se the currency make sharp moves, with the release of the highly-influential consumer confidence figures for September, with the market forecast for an increase in positive sentiment; but with the potential for a surprise, the market may well be on edge. Wednesday will see durable goods orders figures cross the wires, with Thursday seeing the release of US 2nd Quarter GDP figures, along with personal consumption and pending home sales figures. The week will close out with personal income and spending figures, along with the latest University of Michigan confidence survey.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
The UK’s economic docket for the week ahead will kick-off on Tuesday, with the release of September’s Nationwide house price figures which are expected to show a slight decrease annually, but there is the possibility of a rise in the monthly level. Tuesday will also see the release of September’s CBI reported sales figures, with the market forecast for a drop from -14 down to -15. There is nothing scheduled for Wednesday, with mortgage approvals and net consumer credit figures set to cross the wires on Thursday, and GfK consumer confidence figures for September will be released in the early hours of Friday morning, which will round off the week for the UK. The Pound is likely to come under more pressure from worsening sentiment across Europe as opposed to any drastic surprises in terms of economic data, with the US Dollar benefitting hugely from its ‘safe-haven’ status.
The Euro finished last week slightly higher against the Pound but lower against the US Dollar in the currency exchange market. The EUR/USD exchange rate fell from Monday’s open at 1.3684 to a low of 1.3385 on Thursday, before regaining slightly to trade at 1.3503 by the market close on Friday. In terms of economic data, the overall feeling from Europe was negative last week, with both the German and EU ZEW economic sentiment survey’s showing sharp declines, along with French, German, and Euro-zone PMI figures for manufacturing and services all falling drastically for the month of September. Euro-zone consumer confidence also fell for the month of September, from -16.5 to -18.9, to put further pressure on both the currency, and the region. As well as weak data, the currency has not been helped by speculation that the ECB may have to cut interest rates at its next meeting to try and prevent worsening economic conditions, with the EU still trying to come to a suitable plan for Greece’s current debt woes.
This morning has already seen the release of German IFO figures, with the drops in business climate, current assessment and expectation readings all not as bad as initially forecast, which is welcome news for the nation. Tuesday will see the release of German GfK consumer confidence figures for October, with the market forecast for a slight improvement. Wednesday will see German CPI (inflation) figures cross the wires, along with German Import Price index figures. Thursday continues to be dominated by German figures, with the release of the latest unemployment rate and unemployment change figures, as well as Euro-zone consumer, economic, industrial and services confidence readings, which have the potential to heap further downward pressure on the currency if the readings are poor. The European economic docket will round off on Friday with German retail sales figures being released along with the latest Euro-zone unemployment rate and Euro-zone CPI estimate for September.
The US Dollar continued to benefit from worsening conditions across Europe last week, as it showed good gains against both the Pound and the Euro. In terms of economic data, the overall picture was mixed from the US, with building permits showing a slight increase, but housing starts falling for the month of August. There was a marked improvement in existing home sales figures though, with the number shooting up to from 4.67 million to 5.03 million for August. The Dollar was boosted as well, at Wednesday’s Federal; Reserve meeting, when it was announced that the central bank will divert $400 billion to extend the overall maturity date on securities that it holds; with the intention to ‘’support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate’’.
Today will see the release of new home sales figures for August, with the market forecast for a slight decrease in the numbers, and also the release of the latest Chicago Fed national activity index. Tuesday could well se the currency make sharp moves, with the release of the highly-influential consumer confidence figures for September, with the market forecast for an increase in positive sentiment; but with the potential for a surprise, the market may well be on edge. Wednesday will see durable goods orders figures cross the wires, with Thursday seeing the release of US 2nd Quarter GDP figures, along with personal consumption and pending home sales figures. The week will close out with personal income and spending figures, along with the latest University of Michigan confidence survey.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Friday 23 September 2011
Foreign Exchange Daily Market Update 23/09/11
The Pound yet again finished lower against the Euro and the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate closed at 1.4126; only slightly lower from the morning’s open at 1.1429, but the GBP/USD exchange rate fell heavily again, from 1.5456 down to 1.5350 across the course of the day. There was no significant economic data released from the UK yesterday; with the currency facing pressure from an ever strengthening Dollar which has been boosted by both the ongoing debt issues in Europe; and the Federal Reserve’s $400 billion asset purchase plan.
This morning will see the release of Augusts BBA loans for house purchase figures, with the market forecast for a decline in the level; which would not be positive for the Pound, as it would further reinforce weakness in the UK’s housing market.
The Euro did make a small advance against the Pound, but dropped against the US Dollar yesterday. The EUR/USD exchange rate fell from the mornings open at 1.3523 to trade down at 1.3432 by the days close. There has been increased speculation that the Euro-zone could fall back into recession, and that Greece may struggle to receive further funding from the IMF, which has seen a further shift in the currency exchange market towards the US dollar. There was plenty of disappointing economic data released from Europe yesterday, with French and German PMI manufacturing and services data showing rapid declines for the month of September. The EU PMI figures for manufacturing, services and also the composite level showed declines too, putting further pressure on the Euro currency.
There is no significant data set for release from Europe today, with some low-level figures from Italy and France already released, and having little effect on the market overall.
The US Dollar is continuing to find strength across the board, boosted by the Federal Reserve’s decision to divert $400 billion to extend the overall maturity date on securities that it holds; in the central bank’s words ‘’To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate’’. The currency has also benefited from its safe-haven status, with a worsening outlook across Europe seeing a shift towards the US currency. Yesterday saw an increase in the US’s house price index for July, up monthly from 0.7% to 0.8%, but a slight drop in the leading indicators figures, which saw a drop from 0.5% to 0.3% for August.
Akin to Europe, there are no significant data releases scheduled from the US today.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
This morning will see the release of Augusts BBA loans for house purchase figures, with the market forecast for a decline in the level; which would not be positive for the Pound, as it would further reinforce weakness in the UK’s housing market.
The Euro did make a small advance against the Pound, but dropped against the US Dollar yesterday. The EUR/USD exchange rate fell from the mornings open at 1.3523 to trade down at 1.3432 by the days close. There has been increased speculation that the Euro-zone could fall back into recession, and that Greece may struggle to receive further funding from the IMF, which has seen a further shift in the currency exchange market towards the US dollar. There was plenty of disappointing economic data released from Europe yesterday, with French and German PMI manufacturing and services data showing rapid declines for the month of September. The EU PMI figures for manufacturing, services and also the composite level showed declines too, putting further pressure on the Euro currency.
There is no significant data set for release from Europe today, with some low-level figures from Italy and France already released, and having little effect on the market overall.
The US Dollar is continuing to find strength across the board, boosted by the Federal Reserve’s decision to divert $400 billion to extend the overall maturity date on securities that it holds; in the central bank’s words ‘’To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate’’. The currency has also benefited from its safe-haven status, with a worsening outlook across Europe seeing a shift towards the US currency. Yesterday saw an increase in the US’s house price index for July, up monthly from 0.7% to 0.8%, but a slight drop in the leading indicators figures, which saw a drop from 0.5% to 0.3% for August.
Akin to Europe, there are no significant data releases scheduled from the US today.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
Thursday 22 September 2011
Foreign Exchange Daily Market Update 22/09/11
The Pound finished the day lower against both the Euro and the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate which opened at 1.1482 fell across the course of the day to trade down at 1.1377 by the day’s close. The GBP/USD exchange rate followed a similar pattern, opening at 1.5699 and finishing the day down at 1.5625. The main economic event in the UK yesterday was the release of the minutes from the Bank of England’s last policy meeting; which showed that the vote was unanimous to keep the base interest rate on hold, and the decision to keep the asset purchase target at its current level was by a majority of 8-1. Comment from the policy committee said the decision on whether to expand stimulus was “finely balanced’’ with an indication that weak economic conditions could see additional stimulus being added at some point; with the comment from policy-makers that it is “increasingly probable that further asset purchases to loosen monetary conditions would become warranted at some point’’.
There are no significant data releases from the UK scheduled for today.
The Euro gained against the Pound and the US Dollar across the course of Wednesday, the EUR/USD exchange rate moving up throughout the day, up from the morning’s open at 1.6372 to trade at 1.3773 by the day’s close. There was no significant data released from Europe, with the currency benefitting from the UK central bank’s confirmation that the outlook for the UK remains weak, and that it will consider adding extra monetary stimulus to try and stabilise future growth.
This morning will see the release of PMI manufacturing, services and composite figures from France, German and the Euro-zone, with the overall expectation to see a further decline from the previous month’s levels; across the board. The Euro could face pressure in light if worsening economic data; with the potential for Greece to not receive a further round of liquidity from the IMF still a distinct possibility. The ECB has already indicated that it sees downside risks to both price and economic growth over the coming months, and despite yesterday’s advance could well weaken in the currency exchange market. The latest Euro-zone consumer confidence reading will also cross the wires today, with the market forecast for a further drop in sentiment.
The US Dollar made good gains against the Pound, but fell against the Euro yesterday. There was some surprisingly positive news from the US yesterday, with existing home sales figures for August showing a huge increase from 4.67 million to 5.03 million sales, the monthly percentage increase standing at 7.7% overall; following the previous months -3.5% decline. Yesterday evening saw the Federal Reserve announce a $400 billion asset purchasing project to try and stabilise future growth prospects in the US. The interest rate was as expected, kept on hold at the central bank’s meeting, but a majority vote of 7-3 saw the bank commit to selling short-term securities, and it will replace them with longer-term assets; the official statement reading ‘’ To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to extend the average maturity of its holdings of securities. The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less.’’ The currency did benefit from this announcement, and advanced steadily overnight against both the Pound and the Euro.
Today will see the release of July’s house price index, and also August leading indicators figures. There is the potential for a slight drop in the lading indicators number, which would indicate a slight economic downturn, but this figure will be based on data released before the Federal Reserve’s announcement last night so may not see much reaction in the market.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
There are no significant data releases from the UK scheduled for today.
The Euro gained against the Pound and the US Dollar across the course of Wednesday, the EUR/USD exchange rate moving up throughout the day, up from the morning’s open at 1.6372 to trade at 1.3773 by the day’s close. There was no significant data released from Europe, with the currency benefitting from the UK central bank’s confirmation that the outlook for the UK remains weak, and that it will consider adding extra monetary stimulus to try and stabilise future growth.
This morning will see the release of PMI manufacturing, services and composite figures from France, German and the Euro-zone, with the overall expectation to see a further decline from the previous month’s levels; across the board. The Euro could face pressure in light if worsening economic data; with the potential for Greece to not receive a further round of liquidity from the IMF still a distinct possibility. The ECB has already indicated that it sees downside risks to both price and economic growth over the coming months, and despite yesterday’s advance could well weaken in the currency exchange market. The latest Euro-zone consumer confidence reading will also cross the wires today, with the market forecast for a further drop in sentiment.
The US Dollar made good gains against the Pound, but fell against the Euro yesterday. There was some surprisingly positive news from the US yesterday, with existing home sales figures for August showing a huge increase from 4.67 million to 5.03 million sales, the monthly percentage increase standing at 7.7% overall; following the previous months -3.5% decline. Yesterday evening saw the Federal Reserve announce a $400 billion asset purchasing project to try and stabilise future growth prospects in the US. The interest rate was as expected, kept on hold at the central bank’s meeting, but a majority vote of 7-3 saw the bank commit to selling short-term securities, and it will replace them with longer-term assets; the official statement reading ‘’ To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee decided today to extend the average maturity of its holdings of securities. The Committee intends to purchase, by the end of June 2012, $400 billion of Treasury securities with remaining maturities of 6 years to 30 years and to sell an equal amount of Treasury securities with remaining maturities of 3 years or less.’’ The currency did benefit from this announcement, and advanced steadily overnight against both the Pound and the Euro.
Today will see the release of July’s house price index, and also August leading indicators figures. There is the potential for a slight drop in the lading indicators number, which would indicate a slight economic downturn, but this figure will be based on data released before the Federal Reserve’s announcement last night so may not see much reaction in the market.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
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