Foreign Exchange Daily Market Update 12/04/12

The Pound continued to decline against the US Dollar yesterday and remained flat against the Euro in the foreign exchange market. The GBP/EUR exchange rate picked up from 1.2126 at the morning’s open to trade in a fairly tight range between the low of the day at 1.20096 and high of 1.2137, before trading back around 1.2126 by the close of the UK business day. The GBP/USD exchange rate picked up from 1.5891 to trade down to the day’s high of 1.5934 before trading back towards 1.5889 by the European market close. The Pound also 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 1.9468 at the morning’s open to trade down towards 1.9429 by the close of the UK business day. The GBP/AUD exchange rate opened up from 1.5458 and finished the session lower at 1.5429.

As for economic data from the UK we had the BRC like-for-like Sales (Mar) release in the early hours, posting a gain from -0.3% to 1.3% for the year-on-year figure.

This morning on the economic data front we have the UK Visible Trade Balance due at 09:30 GMT, where economists are expecting a further decline from -£7532 to -£7650 for the month-on-month figure.

The Euro remained flat against the US dollar and continued its gain against the Pound in the currency exchange market yesterday. The EUR/USD exchange opened up at 1.3103 and traded in an open range between 1.3089 and 1.3157, before trading back towards 1.3103 by the European market close.

Yesterday was fairly light on the economic data front from the Euro-zone with German Wholesale Price Index (Mar) declining further from the prior of 1.0% to 0.9% and down from 2.6% to 2.2% for the year-on-year figure.

This morning we have the Monthly Budget report (April) to be published by the European Central Bank at 09:00 GMT, followed by Euro-zone Industrial Production s.a (Feb) figures due at 10:00 GMT. Economists are expecting a decline in the month-on-month Industrial Production numbers from 0.2% to -0.3%.

The US Dollar gained slightly against the Pound and remained flat against the Euro currencies yesterday. On the economic data front, MBA Mortgage figures declined this week from 4.8% to -2.4% and US Import Price Index month-on-month came in better than expected at 1.3% vs. 0.8%.

Later today we will be looking out for the Producer Price Index (Mar) figures due at 13:30 GMT, where economists are expecting a decline from 3.3% to 3.1% for the year-on-year figure. Also due at 13:30 GMT today we have the release of Initial and Continuing Jobless Claims.

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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.