Foreign Exchange Daily Market Update 18/04/12

The Pound gained slightly against the US Dollar yesterday and gained against the Euro in the foreign exchange market. The GBP/EUR exchange rate picked up from 1.2113 at the morning’s open to trade in a tight range between the high of the day at 1.2149 and the low of 1.2111, before trading back around 1.2138 by the close of the UK business day. The GBP/USD exchange rate picked up from 1.5920 to trade up to the day’s high of 1.5970 before trading back towards 1.5928 by the European market close. The Pound declined against both the Australian Dollar and the New Zealand Dollar in the foreign exchange market yesterday. The GBP/NZD exchange rate picked up from 1.9472 at the morning’s open to trade down towards 1.9365 by the close of the UK business day. The GBP/AUD exchange rate opened up from 1.5400 and finished the session lower at 1.5308.

Yesterday we had fairly significant data from the UK with the Consumer Price Index year-on-year (Mar) coming in higher that expected at 3.5% vs. 3.4%, this pushed the GBP/USD higher during the early trading session. Retail Price Index came in line with expectations at 3.6 and down from 3.7% for the year-on-year figure.

We have very important economic data from the UK this morning with the Bank of England Minutes and Jobless Claims Change and due at 09:30 GMT, where economists are expecting a decline from 7.2k to 6.0k for the jobless claims change.

The Euro declined against both the US dollar and the Pound in the currency exchange market yesterday. The EUR/USD exchange opened up at 1.3143 and traded in a small range between 1.3172 and 1.3104, before trading back towards 1.3122 by the European market close.

Yesterday we had EU Car Registrations for the month of month increase from the prior month of -9.7% to -7.0%. Followed by Euro-zone Consumer Price Index (Mar) year-on-year coming in slightly higher that expected at 2.7% vs. 2.6%, however the figure was unchanged from the previous release of 2.7%. Euro-zone ZEW Survey (Economic Sentiment) (Apr) increased from 11 to 13.1.

This morning economic data is fairly light, we have just had the Euro-zone Current Account n.s.a. (Feb) coming in at -€5.9bln vs. (Prev. -€12.3bln, Rev. -€10.1bln) and later we have the release of Euro-zone Construction Output (Feb) due at 10:00 GMT.

The US Dollar declined against the Pound and gained against the Euro currencies yesterday. We had fairly mixed economic data from the US yesterday with the Building Permits increasing from the previous 715k to 747K, which beat analyst’s expectations of 710k. Housing Starts (Mar) however declined from 694k to 654k and missed expectations of 705k, and Industrial Production (Mar) was unchanged from the prior month of 0.0% and missed expectations of 0.3%.

Today economic data from the US is very light with the MBA Mortgage Applications (Apr 13) due at 12:00 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.