Friday 20 April 2012

Foreign Exchange Daily Market Update 20/04/12


The Pound gained by a fraction against the US Dollar and gained against the Euro yesterday in the foreign exchange market. The GBP/EUR exchange rate picked up from 1.2216 at the morning’s open to trade in an tight range between 1.2251 and 1.2201, before trading back around 1.2225 by the close of the UK business day. The GBP/USD exchange rate picked up from 1.6056 to also trade in an Range between 1.6072 and 1.6007, before trading back towards 1.6057 by the European market close. The Pound also maintained its strength against both the Australian Dollar and the New Zealand Dollar in the foreign exchange market yesterday. The GBP/NZD exchange rate picked up from 1.9622 at the morning’s open to trade up towards 1.9697 by the close of the UK business day. The GBP/AUD exchange rate opened up from 1.5469 and finished the session higher at 1.5534.

Yesterday we had no economic data scheduled from the UK. However today we have Retail Sales (Mar) due at 09:30GMT where economists are expecting an increase from 1.0% to 1.3% for the year-on-year figure and -0.8% to 0.4% for the month-on-month.

The Euro declined slightly against the US dollar and against the Pound in the currency exchange market yesterday. The EUR/USD exchange opened up at 1.3141 and traded in a range between 1.3070 and 1.3165, before trading back towards 1.3132 by the European market close.

Yesterday economic data from the Euro-zone was fairly light with the Italian Industrial Orders NSA (Feb) declining from -5.6% to -13.2% for the year-on-year figure and missing expectations for the month-on-month figure at -2.5% versus -1.1%. Euro-zone Consumer Confidence (Apr) also missed economists expectations at -19.8 vs. -19 and down from the prior month of -19.1.

This morning from the Euro-zone we have seen an increase in German Producer Prices (Mar) from 3.2% to 3.3% and beating economists expectations of 3.1% for the year-on-year figure. German IFO Business Climate (Apr) also beat economists expectations at 109.9 vs. 109.5 expected by economists.

The US Dollar declined fractionally against the Pound and gained against the Euro currencies yesterday. US economic data was fairly negative yesterday with Initial and Continuing Jobless Claims missing expectations. Initial Claims came in at 386k higher than the 370k expected by economists but lower than the revised figure of 388k and Continuing Claims missed expectations at 3297k vs. 3300k. Also Existing Home Sales missed analysts expectations at 4.48mln vs. 4.62mln along with Philadelphia Fed (Apr) declining from 12.5 to 8.5. However Leading Indicators (Mar) beat expectations at 0.3% vs. 0.2% but was still lower from the prior month of 0.7%.

There is no scheduled economic data from the US today, however we have the IMF meeting in Washington today which is due around 14:00 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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