Daily Foreign Exchange Market Update

During yesterday’s market session the Pound weakened against the Euro and the US Dollar with the GBPEUR rate opening at 1.2504, a daily high and fell throughout the day before closing at a daily low of 1.2469. The GBPUSD rate opened at 1.5985, dropping early morning to a daily low of 1.5964, peaking around lunch time to a daily high of 1.5989 before closing slightly higher at 1.5983. Yesterday was a quiet day for data release in the UK with the most significant piece being the month on month Halifax house price index which shows the change in prices of homes financed by HBOS. The previous figure was -0.4% and the actually figure missed the 0.5% forecast, coming out at -0.7%, showing lower activity in the housing market. There will be no data coming out of the UK.

The Euro gained strength against both the Pound and the US Dollar in the foreign exchange market yesterday with the EURUSD rate opening at a daily low of 1.2784 and closing out at a daily high of 1.2818. Yesterday the Bundesbank released the results for German factory orders which shows the change in total value of new purchase orders placed with manufacturers. The result came out much lower then expected, -3.3% compared to -0.3% showing that there is less activity in the manufacturing sector. Today the Greek government will meet to discuss austerity plans. They will vote and decide on whether the measures in the ‘medium term financial strategy 2013-2016’ will be implemented. There are expected to be a wave of 48 hour public sector strikes against wage and pension cuts but Prime Minister Antonis Samaras is expected to marginally win support for these austerity cuts.

The US Dollar gained some strength against the Pound but lost some against the Euro during yesterday’s market session. However this morning the Dollar quite a bit of ground against the Pound and the Euro due to the announcement of Barack Obama holding Presidency for the next four years.

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