Daily Foreign Exchange Market Update

The Pound lost ground against both the Euro and the US Dollar during yesterday’s foreign exchange market session. The GBPEUR rate opened at 1.2519, a daily high, falling for the first few hours before hitting a daily low of 1.2480 an hour before midday, closing the day slightly higher at 1.2489. The GBPUSD rate also opened at a daily high of 1.6013, falling throughout the day to reach a daily low of 1.5957 an hour before the close of trade, closing out the day at 1.5975. Yesterday saw UK Purchasing Manager Index for services be released with the result of 50.6 being slightly lower then the predicted level of 52.0 showing there is a very small expansion within the services sector. Today will see industrial and manufacturing production showing the change in total inflation-adjusted value of output produced by manufacturers. Industrial production came out worse then expected at -2.6% and manufacturing production also came out worse but it was a positive figure of 0.1%.

The Euro gained strength against the Pound but weakened against the US Dollar yesterday with the EURUSD rate opening at 1.2792, peaking early to 1.2807 before dropping to a daily low around lunch time to 1.2767 before closing out the day at 1.2791. Yesterday saw Spanish unemployment change being released with the result being much higher than expected, 128.2K compared to 90.3K, bad news for the labour market in Spain as this is the highest change since February this year. Today will see French, German and Italian PMI be released with the possibility of the Euro strengthening if the results surpass the predicted levels.

Yesterday saw the US Dollar gain against both the Pound and the Euro in the foreign exchange market. The only piece of significant data coming out of the US yesterday was the ISM non-manufacturing PMI which came out slightly lower then expected, 54.2, but still above the 50 level showing an expansion in the sector. Today is a quiet day for economic data release but will see Americans going to the polls to vote on who will be their President for the next four years. The outcome will be very important for the economy as a whole and in the next few days we could see the Dollar swing either way depending on who wins.

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