Foreign Exchange Market Update 09/05/2012

The Pound gained slightly against the US Dollar and against the Euro yesterday in the foreign exchange market. The GBP/EUR exchange rate picked up from 1.2398 at the morning’s open to trade to a new high of 1.2430, before trading back around 1.2413 by the close of the UK business day. The GBP/USD exchange rate picked up from 1.6149 to trade in a range between the low of 1.6123 and the high of 1.6164, before trading back around 1.6157 by the European market close. The Pound continued to gain against the Australian Dollar and the New Zealand Dollar in the foreign exchange market yesterday. The GBP/NZD exchange rate picked up from 2.20405 at the morning’s open to trade up towards 2.0516 by the close of the UK business day. The GBP/AUD exchange rate opened up from 1.5898 and finished the session higher at 1.5969.

Yesterday we had some negative economic data from the UK, with RICS House Price Balance (Apr) declining from the prior month of -11.0% to -19%. Also showing a decline from 1.5% to 1.3% was BRC Shop Price Index (Apr) which missed the year-on-year expectations of 1.6%.

This morning BRC Sales like-for-like (Apr) declined from 1.3% to -3.3%, which completely missed expectations of 0.6%. There is no further economic data scheduled from the UK today.

The Euro declined against both the US dollar and the Pound in the currency exchange market yesterday. The EUR/USD exchange opened up at 1.3025 and traded towards the low of 1.2982, before trading back 1.3015 by the European market close.

Yesterday economic data from the Euro-zone was light and positive, with German Industrial Production (Mar) beat expectations for the year-on-year figure coming in at 1.6% vs. -1.2% up from the prior revised release of 0.0% and the month-on-month figure rose from -0.3% from the prior month to 2.8%.

This morning we have seen the release of German Trade Balance (Mar) which came in positive increasing from €14.9bln to €17.4bln.

There is no further scheduled economic data from the Euro-zone today.

Yesterday the US Dollar declined against the Pound and gained against the Euro currencies during the European session. Economic Data was fairly light from the US with NFIB Business Optimism (Apr) increasing for the month from 92.5 to 94.5 and IBD Economic Optimism (Apr) beat expectations coming in at 48.5 vs. 48, however was still down from the prior release of 49.3.

Today we have another light day in regards to economic data from the US, with MBA Mortgage applications due at 12:00 GMT and Wholesale Inventories (Mar) due at 15:00 GMT.

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