Foreign Exchange Daily Market Update 15/03/12

The Pound closed yesterday’s session having made a slight loss against the US Dollar and gained fractionally against the Euro in the foreign exchange market. The GBP/EUR exchange rate picked up from 1.2035 at the morning’s open to trade in a tight range between the day low of 1.2005, and high of 1.2054 before trading back to 1.2040 by the close of the UK business day. The GBP/USD exchange rate picked up from 1.5720 to trade down to the day’s low of 1.5656 before trading higher towards 1.5699 by the European market close. The Pound also gained against the Australian Dollar and against the New Zealand Dollar in the foreign exchange market. The GBP/NZD exchange rate picked up from 1.9253 at the morning’s open to trade up towards 1.9378 by the close of the UK business day. The GBP/AUD exchange rate opened up from 1.4976 and finished the session higher at 1.5000.

Yesterday we saw an increase in Jobless Claims Change in the UK, with the figure coming in worse than expected at 7.2k versus 5.0k expected by economists. Also the Unemployment Rate remained flat at 8.4% as expected for the month of January.

We have no scheduled data release from the UK today.

The Euro declined against both the Pound and the US Dollar in the currency exchange market again yesterday. The EUR/USD exchange opened up at 1.3060 to trade in a fairly open range from the day low of 1.3011, and the high of 1.3091 before closing out at 1.3038 by the European market close.

Yesterday we had seen the Euro-zone Consumer Price Index y/y (Feb) come in slightly lower than expectations at 1.5% versus 1.6% and in line with the previous release of 1.5%. This morning we will keep an eye on Italian General Government Debt (Jan) due at 09:30 GMT, followed by 10:00 GMT Euro-zone Employment.

The US Dollar declined against the Pound, but managed a slight gain against the Euro currencies yesterday. We had a fair amount of data scheduled from the US yesterday, with the release of MBA Mortgage Applications (Mar 9) which came in at -2.4% which declined further from the prior release of -1.2%. Also the US Current Account Balance came in worse than expected at -$124.1bln versus -$115.0bln.

We have a fair amount of data from the US today, firstly with the release of US Producer Price Index due at 12:30 GMT; which is expected to decline from 4.1% to 3.1%. Also we have the release of Empire Manufacturing (march) expected at 17.4 down from 19.53, followed by Initial and Continuing Jobless Claims.

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