Wednesday 11 April 2012

Foreign Exchange Daily Market Update 11/04/12

The Pound continued its decline against the US Dollar yesterday and declined against the Euro in the foreign exchange market. The GBP/EUR exchange rate picked up from 1.2125 at the morning’s open to trade up towards the low of the day at 1.2078, before trading back around 1.2116 by the close of the UK business day. The GBP/USD exchange rate picked up from 1.5867 to trade down to the day’s low of 1.5807 before trading back towards 1.5834 by the European market close. However the Pound managed to gain against both the Australian Dollar and against the New Zealand Dollar in the foreign exchange market yesterday. The GBP/NZD exchange rate picked up from 1.9365 at the morning’s open to trade up towards 1.9466 by the close of the UK business day. The GBP/AUD exchange rate opened up from 1.5408 and finished the session higher at 1.5425.


There was no significant data from the UK yesterday and have no further data released today. However overnight we had the UK BRC Sales year-on-year (Mar) increase from -0.3% to 1.3%.


The Euro continued to decline against the US dollar and gained against the Pound in the currency exchange market yesterday. The EUR/USD exchange opened up at 1.3084 and traded in an open range between 1.3054 and 1.3138, before trading back towards 1.3067 by the European market close.


Yesterday we had German Trade Balance increase from the prior month of €13.2bln to €14.2bln. Business sentiment for Bank of France missed expectations at 95 vs. 96 however the figure was unchanged from the prior month, French industrial Production came in line with expectations at 0.3%, up from 0.2% from the prior month and French Manufacturing Production month-on-month came in worse than expected at -1.2% vs. 0.0%.


This morning we had the release of the German Wholesale Price Index (Mar) which declined from the prior of 1.0% to 0.9% and down from 2.6% to 2.2% for the year-on-year figure.


The US Dollar gained against the Pound and against the Euro currencies yesterday, following further negative news about Spanish debt and bond yields reaching 6.0%. On the economic data front from the US, we had seen Wholesale Inventories come in better than expected at 0.9% vs. 0.5% and up from the prior month’s 0.6%.


Today we will look out for the MBA Mortgage Applications (Apr 6) due at 12:00 GMT, followed by Import Price Index (Mar) due at 13:30 GMT. Later today we will also look out for the US Monthly Budget Statement due at 19:00 GMT


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This Daily Market Update is brought to you by The Market Team @ KBRFXExchange Rate, Currency Conversion & Foreign Currency Transfer specialists.

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