Daily Foreign Exchange Market Update

The Pound saw losses against the Euro and the US Dollar in the foreign exchange market yesterday. The GBPEUR rate opened the day at 1.2355 but moved to a daily high of 1.2362 an hour after the open; it fluctuated throughout the day, dropping to a daily low of 1.2331 before closing the day out at 1.2350. The GBPUSD rate opened at 1.6027, hitting a daily high of 1.6034 mid-morning, before falling to 1.5996 in the afternoon and closing out the day at 1.6013. There was no data released form the UK yesterday but there was some big news as the new Governor of the Bank of England was announced. The Chancellor of the Exchequer, George Osborne, announced that the new Governor will be Canadian, Mark Carney who is currently Governor of the Bank of Canada and Chairman of the Financial Stability Board. Many analysts believe it is a sound choice as he has experience as a central banker and Canada has had no big banking crisis like the UK has. Today has already seen the UK GDP revised figure come out at 1.0%, so no change.

The Euro saw gains versus the Pound but losses against the US Dollar during yesterday’s market session. The EURUSD rate opened the day at 1.2972 and dropped to a daily low shortly after to reach 1.2947; it then quickly peaked up to 1.2981 before lunch before it closed the day out at 1.2966. The major news from the Euro-zone yesterday was the Euro-group meeting where for the third time this month leaders have tried to clear an aid payment to Greece. There will be no data from the Euro-zone today.

Yesterday we saw the US Dollar gain against the Pound and the Euro in the foreign exchange market even though there was no data released from the US. Today will see durable goods orders for October be released with the figure set to fall by 1.0%. This is much lower than the previous figure of 9.9% for September showing a lower amount of confidence in the US market however Consumer Confidence will also be released and is set to rise from 72.2 to 73.0.

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