Daily Foreign Exchange Market Update

Yesterday in the foreign exchange market we saw the Pound gain ground against the Euro and the US Dollar. The GBPEUR rate opened the day at a daily low of 1.1646 and strengthened until it closed out at a daily high of 1.1703. The GBPUSD rate followed a similar pattern, opening at a daily low of 1.5218 and closing out at a daily high of 1.5269. The Dollar also saw losses against the Euro with the EURUSD rate opening the day at 1.3068 and closing out at 1.3048.

It was a quiet day for data release yesterday with the main figure being Eurozone consumer confidence. It was expected to come out at -24 but came out slightly better at -22.3. US existing home sales for March came out better than expected, falling by 0.6% compared to the previous month.

There is expected to be a lot more data coming out today, we have already seen German and French PMI data be released. German PMI for services came out at 49.2 and for manufacturing, 47.9, both figures worse than expected. French PMI for services and manufacturing came out at 44.1 and 44.4 respectively, better than predicted. Eurozone PMI for services and manufacturing has just been released, at 46.6 and 46.5 respectively showing an expected deterioration in business conditions.

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

Daily Foreign Exchange Market Update

Yesterday in the foreign exchange market the Pound saw some losses against the Euro but some gains versus the US Dollar. The GBPEUR rate opened the day at 1.1680 and closed out at 1.1646 showing not a great deal of movement yesterday. The GBPUSD rate opened the day at 1.5094 and hit a daily high of 1.5144 early in the morning before it weakened slightly across the day, closing out at 1.5112. We also saw some gains in the Euro against the US Dollar yesterday with the EURUSD rate opening at 1.2922 and closing out at 1.2975.

Yesterday was a quiet day for data release with only Rightmove house prices being released which saw an increase of 1.2%.

Today we have already seen CPI (inflation) for Feb with the figure increasing by 2.8%, more than the Bank of England's target rate of 2.0%. Later today Cyprus' Parliament will vote on the Deposit Levy for the EU bail out.

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

Daily Foreign Exchange Market Update

Yesterday we saw the Pound gain against the Euro but fall in value against the US Dollar. The GBPEUR rate opened the day at 1.2290 and lost ground across the first half of the day, hitting a daily low of 1.2271 at midday; it then gained strength over the latter part of the day to close out at a daily high of 1.2318. The GBPUSD rate opened the day at a daily high of 1.6312 but then fell throughout the day before it closed out at a daily low of 1.6254. Yesterday Manufacturing PMI was released and came out at 51.4, higher than the predicted figure of 49.1 showing a level of expansion in the manufacturing sector. Today the only piece of information set to be released from the UK is the PMI results for the construction sector which is set to come out at 49.5, slightly lower than the previous figure of 49.3 but still below the 50 level.

Yesterday the Euro lost ground against the Pound and the US Dollar in the foreign exchange market with the EURUSD rate opening at 1.3273, hitting a daily high of 1.3291 just after the open and closing out the day at a daily low of 1.3195. German CPI for December was the only figure to come out of the Eurozone yesterday was the CPI figure which was slightly higher than expected, 2.1%. Today there will be no data from the Eurozone.

The US Dollar gained against both the Pound and the Euro in yesterday’s market session off the back of the news that the Congress agreed a deal to stop the large tax increases and spending cuts that were due to come into effect. Initial jobless claims will be released later today with the figure set to be 356K, higher than last weeks figure of 350K.

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

Daily Foreign Exchange Market Update

Last week in the foreign exchange market we saw the Pound lose strength against the Euro and the US Dollar. The GBPEUR rate opened the week at 1.2305 and lost ground across the first half of the week, hitting a weekly low of 1.2273 on Wednesday morning. It then gain strength over the latter half of the week, hitting a weekly high of 1.2429 on Friday morning before closing the week out at 1.2386. The GBPUSD rate opened the week at 1.6037 and peaked on Tuesday afternoon to a weekly high of 1.6131 before it dropped off and hit a weekly low of 1.6002 on Friday afternoon, closing the week out at 1.6030. The main news from the UK last week was that of the Bank of England’s MPC deciding to keep the base interest rate at 0.5% and the asset purchase programme at £375B. This week there will not be much data coming from the UK with the most significant being that of the jobless claims change, showing the amount of new people who are claiming unemployment benefits but still actively seeking work. The figure is set to fall from 10.1K to 5K, some good news for the UK labour market.

The Euro gained strength against the Pound but weakened against the US Dollar during last weeks market session. The EURUSD rate opened at 1.3032 and moved to a weekly high of 1.3126 Wednesday afternoon before it slipped to a weekly low of 1.2877 Friday afternoon, closing the week out at 1.2941. We saw Euro-zone retail sales come out much lower than expected, at -3.6% compared to the predicted figure of -0.8%, showing a lower amount of confidence from consumers in the economy. Euro-zone third quarter GDP came out in line with predictions at -0.1% and on Thursday the ECB decided to keep their base interest rate at 0.75%. This week we are set to see the German CPI (inflation) be released which is predicted to remain at 1.9% and later this week the Euro-zone CPI figure will also be released and set to stay at 1.5%. On Thursday the ECB will release their monthly report discussing various economic topics including information on the latest ECB meeting.

Last week we saw the US Dollar gain ground against both the Pound and the Euro in the foreign exchange market. The latter half of last week saw non-farm payrolls and the unemployment rate released, both showing good news for the labour market in the US. Non-farm payrolls increased by 145K compared to the predicted 85K increase and the unemployment rate fell from 7.9% to 7.7%. This week the Federal Open Market Committee (FOMC) decides on whether or not to keep the base rate at 0.25% with analysts predicting no change. On Friday US CPI (inflation) will be released with the figure set to fall from 2.2% to 1.9%.

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

Daily Foreign Exchange Market Update

Yesterday the Pound saw gains against both the Euro and the US Dollar in the foreign exchange market. The GBPEUR rate opened at a daily low of 1.2305 and peaked mid-morning to 1.2332 before closing out the day lower at 1.2325. The GBPUSD rate opened at 1.6037, the lowest point of the day but gained strength across the day to close out at a daily high of 1.6102. Manufacturing PMI results were released yesterday with the figure coming out slightly higher than expected, at 49.1, but still below the 50 mark showing a contraction in that sector. It has not gone over the 50 mark since May of this year. Today the PMI for construction will be released and is set to come out slightly lower than before, at 50.7, but still showing an expansion in the construction industry.

The Euro saw losses against both the Pound and the US Dollar during yesterday’s market session. The EURUSD rate opened at 1.3032 and drifted to a daily low of 1.3026 mid-morning. It then gained some strength and hit a daily high of 1.3076 just before it closed out the day at 1.3066. Yesterday Spanish and Italian Manufacturing PMI were released and both saw a contraction in that industry. This morning we have already seen Spanish unemployment change be released and coming out much lower than expected at 74.3K, compared to the analysts’ predictions of 90K. Euro-zone Producer Price Index (PPI) will be released later showing the average change in selling prices received by domestic producers for their goods and services.

The Dollar saw losses against the Pound but gains against the Euro in the foreign exchange market yesterday. Yesterday Manufacturing PMI was released from the US and it came out lower than expected, 49.5 compared to the predictions of 51.5, the first time it has dropped below the 50 level since September. There will be no data released from the US today.

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

Daily Foreign Exchange Market Update

In the foreign exchange market yesterday we saw the Pound lose ground against the Euro but gain against the US Dollar. The GBPEUR rate opened at a daily high of 1.2456 and lose momentum throughout the day before it hit a daily low of 1.2421 in the afternoon, closing out the day at 1.2433. The GBPUSD rate opened the day at a daily low of 1.59 and gained strength throughout the day to close out at a daily high of 1.5935. The main news coming from the UK yesterday were the results of the public sector net borrowing, the amount of new debt held by the government. The figure came out much lower than before, 6.5B compared to the 9.9B last month. There will be no data coming from the UK today.

The Euro gained against the Pound but saw losses against the US Dollar in the foreign exchange market yesterday. The EURUSD rate opened at a daily low of 1.2765 and gained throughout the day to close out at a daily high of 1.2816. There was no data released from the Euro-zone yesterday but today has already seen German PMI be released, up to 46.8 from 46 last month. Euro-zone PMI has also been released, up slightly from 45.7 to 45.8.

The US Dollar weakened against both the Euro and the US Dollar in the foreign exchange market yesterday. This came off the back of jobless claims which came out higher than expected, down from 451K to 410K. Today is Thanksgiving in the US, a public holiday, so no data will be released.

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

Daily Foreign Exchange Market Update

Yesterday the Pound strengthened against the Euro and the US Dollar in the foreign exchange market. The GBPEUR rate opened the day at 1.2466, gaining strength over the first few hours of trading, peaking to a daily high of 1.2494 mid-morning. Throughout the rest of the day it then lost strength, dropping to a daily low of 1.2441 early afternoon, closing slightly higher at 1.2474. The GBPUSD rate opened down at a daily low of 1.6131, it then gained ground and peaked at midday to a rate of 1.6175 but then slipped across the rest of the day to close out at 1.6136. It was a quiet day for data release in the UK with the most significant piece being Nationwide house prices year on year for October showing the change in selling price of homes with mortgages backed by Nationwide and is the leading indicator of the housing industry’s growth because rising house prices attract investors and spur industry activity. Today will see Construction PMI being released, a leading indicator of economic health as it reacts quickly to market conditions. It came out this morning at 50.9, above the level of 50 which shows an expansion in the construction industry.

The Euro lost ground against the Pound but strengthened against the US Dollar in yesterday’s market session. The EURUSD rate opened the day at 1.2939, falling sharply to a daily low of 1.2924 early morning, before quickly gaining back the strength and peaking to 1.2983 at midday, closing the day lower at 1.2935. The main piece of information coming from the Euro-zone yesterday was Ireland’s unemployment rate for October which stayed at 14.8%, a much higher result then the rate of 4.5% seen pre-banking crisis in June 2007. Today has seen Euro-zone PMI for manufacturing come out with the result only slightly better then the previous result, 45.4 compared to 45.3 last month, still below the headline figure of 50.

The US Dollar weakened against the Pound and the Euro in the foreign exchange market yesterday. This came off the back of consumer confidence and ISM Manufacturing results that were better than expected. Today will be a big day for the US economy with jobs reports coming out later today. The unemployment rate is set to slightly increase from 7.8% to 7.9% and the change in non-farm payrolls which is actually set to rise from 114K to 125K.

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

Daily Foreign Exchange Market Update

Yesterday the Pound gained against the Euro and the US Dollar in the foreign exchange market. The GBPEUR rate opened at 1.2402 dropping during the first half of the day to a daily low of 1.2382 around midday. It then strengthened across the rest of the day before closing at a daily high of 1.2439. The GBPUSD rate opened at a daily low of 1.6091 and strengthened throughout the day to close out at a high of 1.6130. No data was released from the UK yesterday and the only result released today is the Purchasing Manager’s Index (PMI) for October which came out lower then expected, at 47.5 compared to the analysts’ view of 48. PMI is an indicator of economic activity and roughly put, it reflects the percentage of purchasing managers in a certain sector that reported better of worse business conditions compared to the previous month, where a result over 50 shows and expansion and below 50, a contraction.

The Euro lost some ground against both the Pound and the US Dollar during yesterday’s market session with the EURUSD rate opening at 1.2975, peaking early morning to 1.3021 but then falling throughout the rest of the day to close out at a daily low of 1.2971 with the two main pieces of data coming from the Euro-zone yesterday were German retail sales and French consumer spending. German retail sales which show the total value of inflation-adjusted sales at retail level came out at 1.5%, much higher then the previous and expected results of 0.1% and 0.4% respectively. French consumer spending, which is the change in inflation-adjusted value of all goods expenditure by consumers, came out slightly lower then expected, 0.1% compared to 0.2% but much higher then the previous result of -0.8%. Today, there has been no data released from the Euro-zone.

The US Dollar weakened against the Pound but gained against the Euro yesterday of the back of no data being released. US consumer confidence for October has just been released and has come out higher at 72.2 from 68.4 and the ISM manufacturing has also come out slightly higher, 51.7 compared to 51.5.

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

Daily Foreign Exchnage Market Update

The Pound saw itself gain strength against both the Euro and the US Dollar in the foreign exchange market yesterday. The GBPEUR rate opened at a daily low of 1.2303, moving up to a daily high at midday to 1.2380 but then lost the momentum during the afternoon to close out at 1.2370. The GBPUSD rate opened down at 1.5950 and dropped over the first hour of the day to reach a daily low of 1.5950. During the rest of the day it gained some strength, peaking at 1.6048 mid-afternoon and closing slightly lower at 1.6014. There was no data released from the UK yesterday.

This morning saw UK third quarter GDP data being released with figure being much better than expected. The economy contracted during April and June of this year by 0.4% and analysts predicted that the economy would grow by 0.6% between July and September but the figure came out at 1%. Yearly GDP data was also released and the economy was expected to shrink by 0.5% but it stayed flat, not changing at all. The quarter on quarter result showed that Britain has finally left a recession with the best result for 5 years, pre-recession, with Olympic ticket sales and a higher demand for services the supposed reason. As soon as the figure was released this morning the Pound peaked sharply against the majority of currencies, especially against the Euro which shows today would be a good day to buy Euros.

The Euro lost strength against the Pound and the US Dollar during yesterday’s market session. The EURUSD rate opened at 1.2990 and plummeted to a daily low of 1.2921 just an hour after opening. It then picked up during the rest of the day, peaking early afternoon at 1.2983 and closing at 1.2945. Euro-zone PMI (Purchasing Managers Index) was released yesterday, a figure that rates the level of business conditions including employment, production, new orders and supplier deliveries. The figure came out at 45.8, lower then the previous result of 46.1, where a figure below 50 shows a contraction in business conditions. As well as this, Mario Draghi spoke at a closed-door meeting at the Bundestag, Berlin where he started by defending the ECB’s bond buying plan to ease Euro-zone debt. He stated that he expects the economy to remain weak in the short term, reflecting adjustments that many countries are undergoing in order to lay foundations for sustainable future prosperity. Although he believes the economy will be weak the overall felling of the speech was one of optimism as he kept repeating that the economy is moving in the right direction. Today is a very quiet day for the Euro-zone with no significant data being released.

The US Dollar weakened against the Pound but strengthened against the Euro in the foreign exchange market. The EURUSD rate opened at 1.2990 and followed a similar pattern to the GBPUSD rate, falling sharply early morning to reach a daily low of 1.2921. It then strengthened and peaked early afternoon at 1.2983 before closing slightly lower at 1.2945. No data came out of the US yesterday but today will see jobless claims, the number of people claiming for unemployment whilst actively seeking work; a figure that is highly correlated with labour market conditions. The previous result was 388K and the expected figure is set to fall to 370K. Durable goods figures will also be released today, an important figure as durable goods are expected to last longer than three years therefore they have to be worth the investment. The previous result was -13.2% but this result is set to be a positive figure, 7.5%.

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

Daily Foreign Exchange Market Update

Last week saw the Pound weaken against the Euro in the foreign exchange market. The GBPEUR opened at 1.2406 quickly rising to a weekly high at the end of trade on Monday, to 1.2409. Throughout the rest of the week the Pound depreciated against it's Euro counterpart, hitting a weekly low on Friday morning at 1.2278, before closing the week slightly higher at 1.2409. The Pound also lost strength against the US Dollar last week with the GBPUSD opening the week at 1.6030, gaining strength over the first half of the week, peaking on Wednesday lunch time at 1.6178 before slipping lower over the remaining part of the week to close at a weekly low of 1.6003 Friday afternoon. There were a range of different results coming out of the UK last week; firstly CPI (inflation) for September was released and came out at 2.2% compared to 2.5% last September, showing the lowest rate of inflation for two years. Jobless claims and unemployment rates were released with a positive result for both. Jobless claims fell by 4K and unemployment rate fell from 8.1% to 7.9%, the lowest it has been for over a year. Growth in the economy is boosted by consumer confidence and retail sales saw a healthy increase for September compared to August, the month on month figure grew by 0.6% compared to -0.2% for August. The majority of data coming out of the UK in the last few weeks has been positive and now economists are expecting third quarter GDP data to show growth, in turn ending the UK’s nine month long recession. Some economists also believe that as inflation is close to the target rate of 2% and most data has been positive showing the UK economy may be fairing better than expected, the Bank of England may increase the amount in their Asset Purchase Program in November. From last months minutes we gleaned that policymakers were split on whether there was any need for additional QE in the future as the bank has already exhausted the allotment for this month.

The Euro strengthened against the Pound but strengthened against the US Dollar during last week’s market session. The EURUSD opened at a weekly low of 1.2920, gaining strength over the first half of the week to peak on Wednesday at 1.3137; it then closed lower on Friday at 1.3022. Last week the main data from the eurozone was the EU Summit where leaders decided to set up a single eurozone banking supervision meaning they are getting closer to a banking union which allows the central bank to intervene, if necessary, on any of the 6,000 banks in the eurozone. On Thursday Italy’s third largest lender Monte Paschi had its credit rating cut to junk by Moody’s and said it may need more state aid as it was the only Italian lender to fail the European Banking Authority’s stress test. Thursday also saw Spain sell off 3/4/10 year bonds with all the yields improving, falling a little across the day. It was also announced last week that there may be a general strike across the entire Iberian Peninsula, the first time ever, on November 14. Portugal has already called a general strike and Spain may decide to join them, with protests being held over austerity measures. This week will be very quiet for data release with the only significant piece being eurozone government debt/GDP ration which was previously 87.2%.

The US Dollar gained strength against the Pound but lost ground against the Euro during last week’s foreign exchange market session. The main data last week was CPI (inflation) which was slightly higher than expected, 2.0% compared to the prediction of 1.9%. This inflation figure shows stable growth in the US economy, add this to the retail sales figure which came out at 1.1% up from 0.8%, shows an improvement in the US. This week will see the FOMC rate decision which is expected to be kept at 0.25%. As well as this durable goods orders will be released, expected to be up by 6.8% compared to -13.2% last month. Durable goods are meant to last more than three years so they require large investments and usually reflect optimism as the expenditure must be worth while. Finally, more good news for the US economy as Friday will see third quarter GDP be released, it is also set to increase by 1.8% compared to 1.3% last quarter.

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

Daily Foreign Exchange Market Update

Yesterday we saw very little change between the Pound and the Euro in the foreign exchange market with the Pound slightly losing strength against its single currency counterpart. The GBPEUR opened at 1.2310, sharply dropping to a day low an hour after the open of trade, to 1.2299 before gaining strength over the next hour to peak at 1.2332. It then lost some ground across the rest of the day before closing only slightly lower at 1.23095. The Pound however gained strength against the US Dollar yesterday with the GBPUSD opening at 1.6134 slipping early morning to a day low of 1.6115. During lunch it peaked to 1.6178 before ending the day lower at 1.6178. The main piece of data coming out of the UK yesterday was unemployment rate which fell to 7.9% from 8.1%, the lowest rate since June 2011, some positive news for the economy. The only significant piece of data coming from the UK today is retail sales which came out at 2.9%, the same as the September 2011 result, it was only predicted to increase by 2.4% showing a greater consumer demand, in turn, a greater consumer confidence and economic growth. The month on month result increased by 0.6%, a lot better then last month's result of -0.2%.

The Euro gained a minimal amount of strength against the Pound and gained against the US Dollar during yesterday’s market session off the back of no data coming out of the Euro-zone yesterday. The EURUSD opened at 1.3107 before dropping to a day low minutes after the open of trade, to 1.3091. It gained over the morning and peaked early afternoon to 1.3137 before closing slightly lower at 1.3132. The main information from the Euro-zone today is that Angela Merkel is speaking at the EU summit later. She has already addressed the German government in the Bundestag where she reiterated her wish for Greece to stay in the Euro-zone. The EU summit today is meant to address youth unemployment which is one of the major concerns in the Euro-zone at the moment as well as discussing banking supervision and oversight. Later today Spain are set to sell 3, 4 and 10 year bonds hoping to raise between 3.5 and 4.5 billion Euros, however in the pre-market all the bonds are trading slightly lower then they were in previous auctions.

The US Dollar lost strength yesterday against both the Pound and the Euro during yesterday’s market session. The main data was from the housing sector where building permits and housing starts were released. Both increased more than expected with building permits coming out at 894K compared to the prediction of 810K and housing starts were a lot higher then analysts’ view of 770K, coming out at 872K. Today initial jobless claims will be released from the US with an increase expected, 363K compared to the previous result of 339K.

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

Daily Foreign Exchange Market Update

Yesterday saw the Pound gain some strength against the Euro and the US Dollar in the foreign exchange market. The GBPEUR opened at 1.2406 and fell to a day low of 1.2379 at noon before picking up during the second half of trading, closing at a day high of 1.2408. The GBPUSD opened at a day low of 1.6030 gaining ground throughout the day, peaking early morning at 1.6078 and closing only slightly lower at 1.6068. No data was released yesterday from the UK.

Today the main piece of information from the UK today is the CPI results that are expected to rise by 2.2% compared to 2.5% this time last year. CPI is always a key figure as it is the main measure for inflation, tracking changes in the price of a basket of goods.

The Euro lost ground against the Pound but gained some against the US Dollar in yesterday’s market session. The EURUSD opened at a day low of 1.2920, gaining strength in the morning before peaking at noon to reach 1.2979 – closing out lower at 1.2949. Yesterday the Commission president Jose Manuel Barroso spoke in Brussels and praised the EU’s international marketplace as the ‘cornerstone of European integration and sustainable growth’ and stated that he had seen a greater degree of openness in the council recently, showing greater confidence for the Euro-zone.

Today will also see CPI data coming out of the Euro-zone with the year-on-year figure for September set to increase by 2.7%, in line with the previous year’s result.

The US Dollar lost strength against both the Pound and the Euro yesterday on the back of advanced retail sales for September being released. This monthly measure of sales and goods at retail outlets is a significant market mover with more than 10% of all US economic activity being from retail sales. The figure increased by 1.1%, more then the analyst predictions of 0.8%.

The only significant piece of data coming out today is the CPI results, like the UK and Euro-zone, and is also expected to increase, by 1.9%, only slightly higher then the 1.7% increase last September.

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

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

Foreign Exchange Daily Market Update 24/05/11

The Pound fell against the Dollar and the Euro yesterday as foreign exchange traders scaled back their appetite for risk. The Bank of England's (BoE) Chief Economist, Spencer Dale, voiced his opinion on UK inflation in an interview yesterday with the Financial Times (FT). Dale stated that the BoE should raise interest rates gradually over the next two years as a means of combating inflation, and as such has been voting for a 25 basis point hike in the interest rate for the past 3 policy meetings, alongside fellow MPC member Martin Weale. Dale said in the FT - "I don't take lightly the impact this (possible rate hike) could have on some families. But I think the cost to our economy as a whole - were inflation to persist for longer and our credibility start to be eroded - would be even worse." Dale's statement does go some way to support the possibility of the BoE raising the interest rates at some point over the next 12 months, and this expectation could well provide some support for the Pound over the coming months.

April's Public Sector Borrowing and Public Finance figures headline the UK's economic docket today. Expectations call for government borrowing to fall from £16.4 billion to £4.4 billion, which would be a positive sign for the economy and in turn the Pound. So should the figure fall in line with estimates, expect to see the exchange rate improve.

A weakened outlook and sovereign debt fears continued to weigh on the Euro yesterday with the Dollar making early gains against the single currency. The Euro's decline was not helped by worse than expected readings for Euro-zone and German Purchasing Managers Indexes (PMI) for April. Germany's index readings for service and manufacturing based activity fell to 54.9 and 58.2 respectively, missing estimates for readings of 57.0 and 61.0. For the Euro-zone manufacturing activity slowed with a PMI of 54.8 down from 58.0 and service based activity slipped from a reading of 56.7 to 54.9, bringing the composite index down from 57.8 to 55.4. The outcome would suggest that the Euro-zone is suffering from the effects of a slowdown in the global economy.

The currency exchange market has already seen a heavy dose of European data this morning, the most influential of which being Germany's final revisions to first quarter GDP. The revision showed that the economy expanded at a rate of 1.5% quarter-on-quarter, which was in line with preliminary readings, while annually the economy had grown by 5.2%. Despite the economy growing as expected, the individual components of the GDP figure were mixed resulting in the Euro currency's decline upon release of the data. One note of worry was that private consumption, investment in construction, and domestic demand of German goods came in well below expectations.

On a more positive note, Germany's IFO business sentiment gauges came in higher than expected. The current assessment index showed that German business remained as confident as last month about present conditions, when the index edged up 0.4 to 121.4, while the outlook for the next 6 months remains relatively weak with the future expectations gauge slipping slightly from 107.7 to 107.4. Lastly, new industrial orders in the Euro-zone are expected to have contracted in the month of March by 1.1% sequentially from February's 0.5% reading. Like yesterday's manufacturing PMIs, the decline of industrial orders points suggests that the slow down in the global economy is affecting the Euro-zone.

Falling risk sentiment boosted the Dollar's standing against the other majors yesterday, as it benefited from its status as a safe haven currency. The fall in risk appetite has been stoked by the sovereign debt crisis in the Euro-zone and perhaps more importantly, by the economic slowdown in China. As the world's second largest economy, China is considered very important in gauging the health of the global economy. News overnight showed that China is set to miss GDP estimates for 2011 as Premier Win Jiabao's campaign to rein in inflation is restraining growth in the economy. Published in today's Economic Information Daily were comments from government researcher Ba Shusong saying he's "concerned about a policy over-adjustment" as "China's economy faces a risk of an excessive downturn" if the central bank's tightening measures last too long.

Housing data from the US makes an appearance on the economic calendar today. The sale of new homes in April is expected to rise by 1.7% to bring the annual total to 305,000 units sold from 300,000. However, given that last week saw existing home sales slump over the same period and both building permits and housing starts contract, the possibility that new home sales will fall below expectations is very real. If the outcome comes inline with analysts' expectations then the Greenback is likely to find support, however if the figure falls below the consensus then the currency could see potential weakness.