Daily Foreign Exchange Market Update

Yesterday the Pound saw gains against both the Euro and the US Dollar in the foreign exchange market. The GBPEUR rate opened at a daily low of 1.2305 and peaked mid-morning to 1.2332 before closing out the day lower at 1.2325. The GBPUSD rate opened at 1.6037, the lowest point of the day but gained strength across the day to close out at a daily high of 1.6102. Manufacturing PMI results were released yesterday with the figure coming out slightly higher than expected, at 49.1, but still below the 50 mark showing a contraction in that sector. It has not gone over the 50 mark since May of this year. Today the PMI for construction will be released and is set to come out slightly lower than before, at 50.7, but still showing an expansion in the construction industry.

The Euro saw losses against both the Pound and the US Dollar during yesterday’s market session. The EURUSD rate opened at 1.3032 and drifted to a daily low of 1.3026 mid-morning. It then gained some strength and hit a daily high of 1.3076 just before it closed out the day at 1.3066. Yesterday Spanish and Italian Manufacturing PMI were released and both saw a contraction in that industry. This morning we have already seen Spanish unemployment change be released and coming out much lower than expected at 74.3K, compared to the analysts’ predictions of 90K. Euro-zone Producer Price Index (PPI) will be released later showing the average change in selling prices received by domestic producers for their goods and services.

The Dollar saw losses against the Pound but gains against the Euro in the foreign exchange market yesterday. Yesterday Manufacturing PMI was released from the US and it came out lower than expected, 49.5 compared to the predictions of 51.5, the first time it has dropped below the 50 level since September. There will be no data released 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.