Daily Foreign Exchange Market Update

Last week we saw the Pound lose ground overall against the Euro and the US Dollar in the foreign exchange market. The GBPEUR rate opened the week at 1.2355 and peaked Tuesday afternoon to a weekly high of 1.2406 but slipped across the second half of the week, hitting a weekly low of 1.2296 an hour before it closed the week out at 1.2406 on Friday. The GBPUSD rate did not see much overall change across the week, opening at 1.6027 and closing it out at 1.6026 however we saw it hit a weekly low of 1.5962 on Wednesday afternoon and peak to 1.6060 when the markets opened Friday morning.

The main news out of the UK last week was that of the new Governor of the Bank of England being announced as current Bank of Canada Governor, Mark Carney. It came as a surprise to the markets but many analysts believe that it is a safe choice due to the fact that Canada has not faced a banking crisis like the UK has. Earlier in the week the revised GDP figure was released and stayed at 1.0%. On Thursday the Financial Stability Report was released followed by a conference held by Mervyn King who announced that may need more capital to be used as protection against possible future losses.

This week PMI results are set to be released in the sectors, Manufacturing, Construction and Services. Thursday will see the Bank of England Monetary Policy Committee (MPC) decide on whether or not to keep the base rate and asset purchase programme the same. Both are set to stay as they are although many believe that the asset purchase programme may be increased soon from £375B.

The Euro gained against both the Pound and the US Dollar during last week’s market session with the EURUSD rate opening at 1.2972 and closing the week out at 1.3009. On Wednesday afternoon it hit a weekly low of 1.2880 and peaked at the open of trade on Friday at 1.3020. Last week we saw German CPI (inflation) come out at -0.1%, in line with predictions. Euro-zone unemployment rate was also released on Friday and came out as expected at 11.7%. This week we will see Spanish unemployment change be released on Tuesday. The previous result was the highest since February, 128.2K showing how much the financial crisis across the Euro-zone has affected the labour market. On Thursday the ECB will meet to decide on the base rate which is expected to remain at 0.75%.

The US Dollar weakened against both the Pound and the Euro during last week’s foreign exchange market session. US preliminary GDP was released last week, coming out higher than last year but lower than expected, at 2.7% showing an expansion in the US economy. Consumer confidence came out on Tuesday at 73.7, higher than the 73.1 predicted. Today manufacturing PMI will be released and is set to fall from 51.7 to 51.5. It is a big week for the labour market as non-farm unemployment change and the unemployment rate will be released later this week. Non-farm unemployment change is set to fall from 158K to 141K and the unemployment rate is set to stay at 7.9% on Friday.

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

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.

Daily Foreign Exchange Market Update

Last week we saw the Pound lose ground against the Euro with the GBPEUR rate opening at 1.2459 and closing out at a weekly low of 1.2371; it did hit a weekly high of 1.2467 at the open of trade on Wednesday. The Pound did however see gains against the US Dollar during last week’s market session with the GBPUSD rate opening at a weekly low of 1.5902 and closing at a weekly high of 1.6031. Last week we saw UK public sector net borrowing be released with the figure coming out lower than expected at £6.5B showing a surplus which is good news for the economy. The MPC minutes from their last meeting were released too with the data showing all members voting to keep the base rate at 0.5%. This week will see the revised GDP figure be release which is set to remain at 1.0% and Thursday will see Mervyn King hold a press conference about the financial stability report.

The Euro gained against the Pound and the US Dollar in the foreign exchange market last week with the EURUSD rate opening at a weekly low of 1.2763 and closing at a weekly high of 1.2958. The main news from the Euro-zone last week was that of Moody’s cutting France’s credit rating from AAA to AA1 and the other credit rating agency, Fitch, giving it a negative outlook for the next year. French, German and Euro-zone PMI results all came out better than expected and the German 3Q GDP figure came out at 0.2%, as expected. Monday will see the Euro-group meeting be held in Brussels to discuss a range of financial issues such as the Euro support mechanism. On Thursday Italy will hold a bond auction on their 10-year bonds.

The US Dollar lost ground against both the Pound and the Euro in the foreign exchange market last week. It was a relatively quiet week for data release due to Thanksgiving but unemployment claims came out better than expected, 410K compared to the 415K predicted. This week the main data release will be durable goods orders which are set to fall by 0.6%. This shows a lower amount of consumer confidence as durable goods are those that last for at least three years so the initial investment must be worth it. Thursday will see the preliminary quarter-on-quarter GDP figure be released which is set to rise from 2.0% to 2.8%.

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

The Pound saw itself weaken against the Euro and the US Dollar in the foreign exchange market yesterday. The GBPEUR rate opened at 1.2422, a daily high, and lost strength across the day before closing out at a daily low of 1.2374. The GBPUSD rate opened at 1.5964 and quickly gained strength, hitting a daily high of 1.5979 early morning. Throughout the rest of the day it weakened before closing out at a daily low of 1.5930. There was no data released from the UK yesterday and none will come out today.

The Euro gained strength against both the Euro and the US Dollar during yesterday’s market session. The EURUSD rate opened the day at a daily low of 1.2851 before hitting a daily high of 1.2899 at midday, closing the day out at 1.2874. Yesterday we saw German, French and Euro-zone PMI all come out better than expected, some good news for once. Today German GDP figures have been released with the year-on-year and quarter-on-quarter figures coming out in line with predictions, 0.4% and 0.2% respectively. Today there is also a Euro-zone economic summit where heads of state will meet and discuss future plans for Spain and Greece.

The US Dollar saw some gains against the Pound but weakened against the Euro in the foreign exchange market yesterday. There was no data from the US yesterday as it was Thanksgiving and none will be released 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

During last week’s foreign exchange market session the Pound lost strength against the Euro and the US Dollar. The GBPEUR rate opened the week at 1.2507 and moved to a weekly high of 1.2546 on Tuesday morning before dropping to a weekly low of 1.2399 on Thursday afternoon, closing the week out at 1.2475. The GBPUSD rate opened at 1.5897 and moved to a weekly high of 1.5916 on Tuesday morning before dropping to a weekly low of 1.5825 on Thursday afternoon, closing the week out at 1.5867. It was a bad week for data release out of the UK as the majority of results came out worse than expected. Tuesday saw CPI (inflation) higher at 2.7% compared to the 2.3% predicted. The result was mainly blamed on higher tuition fees and food and non-alcoholic beverages which were the second largest contributor. The claimant count change showed an increase of 10.1K even though it was expected to fall by 0.5K, showing there was a much higher amount of people claiming unemployment benefits in the previous month. The final bit of significant data that came out was retail sales which fell by 0.8%. This week will not see much data be released, the most important piece being the release of the MPC meeting minutes which shows how many MPC committee members voted for a rate increase, decrease or hold.

The Euro gained strength against the Pound but lost ground against the US Dollar last week. The EURUSD rate opened the week at 1.2753 and hit a weekly low of 1.2660 on Tuesday morning before gaining strength and peaking at 1.2802 on Thursday afternoon before closing the week out at 1.2717. German economic sentiment came out worse than expected, -15.7 compared to the predicted level of -9.9 showing a low level of confidence in Germany. French and German GDP figures came out last week and both saw an increase of 0.2%, better than expected. French and German PMI are expected to come out this week; the French result is set to come out slightly higher than before at 44.1 and the German slightly lower at 45.9.

The US Dollar saw gains against both the Pound and the Euro in the foreign exchange market. US CPI was higher than expected coming out at 0.2% compared to the 0.1% predicted. Retail sales also fell by 0.3%. This week will see unemployment claims come out and are set to fall from 439K to 397K. The chairman of the Fed, Ben Bernanke is set to make a speech on Tuesday entitled ‘The Economic Recovery and Economic Policy’ at the Economic Club in New York. Existing home sales are also set to be released and are predicted to rise slightly from the previous month to 4.76M.

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 weakened against the Euro but strengthened against the US Dollar in the foreign exchange market. The GBPEUR rate opened at 1.2509, peaking early morning to a daily high of 1.2546 before slipping across the rest of the day to close out at a daily low of 1.2492 showing overall it was a good day to be buying Euros. The GBPUSD rate opened at a daily high of 1.5873 and also gained strength in the morning to reach a daily high of 1.5916 before closing the day slightly lower at 1.5884. Yesterday UK CPI (inflation) data was released and came out higher then expected, 2.7% compared to the 2.3% predicted. Food prices, especially produce, were one of the main reasons for the increase and they went up due to the record wet weather we had earlier in the year. The Bank of England want to keep inflation low at 2% and the normal way of doing so is by rising interest rates which it will not do during a period of weak economic activity. This month’s results were a lot different to September’s release where CPI was 2.2%, the lowest for nearly three years.

This morning we have already seen UK jobless claims be released, showing the change in the number of people claiming unemployment benefits during the previous month and came out at 10.1K even though there was predicted to be no change from last month where it fell by 4K. Later today the Bank of England will release their inflation report which will show a projection for inflation and growth over the next two years. Mervyn King is also set to hold a conference along with other MPC members to discuss the report’s content.

The Euro gained ground against both the Pound and the US Dollar during yesterday’s market session. The EURUSD rate opened at 1.2688 but quickly dropped to a daily low of 1.2660; it then gained strength during lunch and hit a daily high of 1.2728 before closing the day out at 1.2718. Yesterday the German ZEW consumer confidence survey was released showing whether analysts and investors have an optimistic or pessimistic view on the German economy. The Figure came out significantly lower than expected, -11.5 compared to -9.9 showing that even in Germany patience is wearing thin. Today will see French CPI (inflation) be released with the figure not set to move much, from 2.2% to 2.1%.

The US Dollar saw gains against the Pound but losses against the Euro in the foreign exchange market yesterday. No data came out of the US yesterday but today will see a few significant pieces be released, the first being retail sales showing the change in total value of sales at retail level giving us an insight into consumer demand and confidence. Last month retail sales rose by 1.1% but they are set to fall by 0.2% this month showing a decrease in consumer confidence. PPI will also be released later today revealing the change in the prices of finished goods and service sold by producers and is set to rise by 0.2%, lower then the previous result of 1.1%. The Fed will also release the minutes from the October meeting later 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

Yesterday in the foreign exchange market the Pound weakened against both the Euro and the US Dollar. The GBPEUR rate opened the day at 1.2507, a daily high before dropping to a daily low of 1.2468 just after lunch; it finally closed out at 1.2483. The GBPUSD rate opened at 1.5897 and hit a daily high of 1.5909 mid-morning, it then weakened throughout the rest of the day to close out at a daily low of 1.5869. There was no data released from the UK yesterday but today will see CPI (inflation) come out showing the change in prices of goods and services purchased by consumers. The previous month’s figure was 2.2% and today the figure is set to come out only slightly higher at 2.3%, further away from the headline inflation figure of 2%, set by the Bank of England.

The Euro gained some ground against the Pound and the US Dollar during yesterday’s market session. The EURUSD rate opened the day at 1.2709, falling quickly to reach a daily low of 1.2703; over the next two hours it gained strength to hit a daily high of 1.2726 before closing out the day slightly lower at 1.2712. Yesterday, Euro-Area ministers met in Brussels to discuss the situation in Greece and decided that they would give Greece two more years to meet its fiscal goals but are not expected to authorise more money. Today, German ZEW economic sentiment will be released showing the level of diffusion in the economy, a leading indicator of economic health. It surveys 275 German institutional investors and analysts and a total result of above 0 shows optimism, below 0 showing a pessimistic view on the economy. The result is expected to be -10.1, slightly better then last month’s result of -11.5 but still showing overall pessimism in the market.

The US Dollar gained against the Pound yesterday but weakened against the Euro in the foreign exchange market. Yesterday was a public holiday in the US so no data was released and today is a very quiet day on that front with no data being set to be released again.

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 lose ground against the Euro and the US Dollar in the foreign exchange market. The GBPEUR rate opened the week at 1.2519, falling throughout the first half of the week before hitting a weekly low of 1.2453 on Wednesday morning. It then quickly gained ground to reach a weekly high on Thursday afternoon at 1.2561 before closing the week out slightly lower at 1.2514. The GBPUSD rate opened at a weekly high of 1.6013 before losing strength throughout the week and closing at a weekly low of 1.5906. Last week there were several pieces of data coming out of the UK, the most important being the Bank of England’s decision to keep the base rate and asset purchase target the same at 0.5% and £375B respectively. As well as this PMI for services was released which shows the level of business conditions in the services sector, it was worse than expected, coming out at 50.6 compared to the 52.0 predicted.

This week will see CPI (inflation) be released, showing the change in prices for retail goods, the Bank of England’s key measure on inflation and is expected to come out slightly higher than before at 2.4% Jobless claims will also be released showing the change in the number of people claiming unemployment-related benefits; the previous month’s figure was -4K and this month it is set to come out at -5.1K, a better result.

The Euro gained against the Pound but lost strength against the US Dollar during last week’s market session. The EURUSD rate opened the week at 1.2792 before moving to a weekly high of 1.2868 on Wednesday morning. It then weakened throughout the latter half of the week, dropping to a weekly low of 1.2689 on Friday afternoon, closing the week out slightly higher at 1.2715. Last week saw Spanish unemployment change be released, coming out at 128.2K, much higher then the 90.3K predicted, the highest since February, bad news for the Spanish job market. Mario Draghi spoke in a conference regarding the state of the Euro-zone economy. He stated that he expected inflation to fall below 2% in the next year even though unemployment is high and economic activity is week. He also said that the actions of the ECB should build confidence in the short term but only actions of the Government can build confidence in the long term. On Thursday it was announced that the ECB would keep their base interest rate at 0.75%.

This week will see most of the economic data come from Germany, with the German ZEW survey on economic sentiment, a good medium term forecast of the German economy being released on Tuesday, the result set to be -10, better then the previous result of -11.5. Thursday will see Germany release their third quarter GDP results, the figure set to be 0.1%, lower then the second quarter result of 0.3%. The Euro-zone third quarter GDP figure will also be released with the economy set to be seen to contract by 0.1% this quarter, slightly better then the second quarter where it contracted by 0.2%.

The US Dollar gained against both the Pound and the Euro in the foreign exchange market last week. Unemployment claims came out a lot better then expected, 355K compared to the 367K predicted, some good news for the US jobs market. The University of Michigan consumer confidence figure also came out higher then expected, 84.9 compared to 82.9, the highest figure we have seen since July 2007, very good news for the economy. The most significant figure coming out of the US this week is year on year CPI (inflation) which is set to fall slightly from 2.1% to 2%, not a great deal of change for inflation.

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

The main news yesterday was that of the Pound falling to a 4 month low against the Euro in the foreign exchange market showing it is not a good time to be buying Euros. The GBPEUR rate opened at 1.2281, gaining strength during the first half of the day to reach a daily high of 1.2310. It then fell throughout the rest of the day, reaching a daily low of 1.2247 an hour before the close of trade, closing slightly higher at 1.2269. The Pound also lost ground against the US Dollar during yesterday’s market session. The GBPUSD rate opened at 1.6036, peaking early, a few hours into trading to reach 1.6053, before falling throughout the rest of the day to close out at a daily low of 1.6026. There was no data released from the UK yesterday and only one piece will be released today. BBA loans for house purchases in September will come out, the number of loans approved for house purchases in the month with the figure set to increase from 30,533 to 30,840, showing an increase in confidence which is healthy for the economy. However, Mervyn King, the Governor of the Bank of England will speak at the Chamber of Commerce today in Cardiff. As Governor of the Bank of England he has more influence over the Sterling than anyone else so analysts will scrutinize the speech to try and predict how the Pound will fare against foreign currencies.

Yesterday saw the Euro gain against the Pound and the US Dollar during the market session with the EURUSD rate opening at 1.3057 and closing at 1.3062. It fluctuated throughout the day, falling early morning to a daily low of 1.3025 but peaking an hour before the close of trade at 1.3083. The only data to be released from the eurozone yesterday was the government debt/GDP ratio for 2011. This ratio shows the amount of debt a eurozone country’s government has compared to the GDP of that country. At the end of 2010 the ratio was 87.2% and at the end of 2011 it increased slightly to 87.3%, not a great deal of difference, still a very high figure.

Today, eurozone consumer confidence will be released, data collected from a range of surveys on various topics including personal finance, the job market and future expectations. The previous figure was -25.9 and today’s figure is set to come out at -25.8, slightly better but still showing a very low level of confidence within the eurozone area.

The US Dollar gained strength against the Pound but weakened against the Euro during yesterday’s foreign exchange market session. This came off the back of no data being released from the US yesterday, the only news being the third and final US presidential debate, the election being dubbed the economic election where the main topic of conversation was foreign policy including defence spending and the trade partnership with China. No data will be 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

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 28/06/11

The Pound closed lower against the Euro, but higher against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate fell from 1.1270 to 1.1179 through the course of the day, putting pressure on UK consumers who are buying Euros. There was a welcome boost for people buying Dollars though, as the rate moved up from the morning’s low of 1.5930, to break the 1.60 barrier, before falling back slightly to 1.5975 by the end of the day.

There were no economic data releases from the UK yesterday to affect the movement of the currency. Today however will see the release of the final reading of 1st quarter UK GDP. With the quarterly growth rate expected to be confirmed at a level of 0.50% and annually at 1.8%, it is not an entirely impressive outlook for the UK economy, but better than any signs of a drop in growth, which would indicate an economic slowdown. Final figures for total 1st quarter business investment are also set for release, with the market forecasting no change from the previous reading of 3.2%. One figure that may give a positive boost to the Pound though is the UK’s current account balance reading for the 1st quarter; which is expected to see a reduction in the deficit from -10.5billion pounds to -4.7 billion pounds.

The Euro continued to find strength against the Pound and the US Dollar yesterday. The EUR/USD rate closed at 1.4279, a fair movement up from the morning’s level of 1.4134. The only low-level economic data to be released from Europe yesterday were figures showing that Italian hourly wages dropped slightly month-on-month, but held steady annually. The market was not really pushed by this news, as it doesn’t have any real bearing on the overall economic outlook for the Euro-zone.

Today has already seen the release of German GfK consumer confidence for July, which saw an upward movement in the reading, suggesting that sentiment across German society in regards to the economic outlook and their own personal spending is improving. There are a few figures of small economic importance to be released throughout the rest of the day, with Italian producer prices and French total jobseekers claims set for release. These figures though are likely to have little to no impact on the currency exchange market.

The Dollar weakened against the Pound and the Euro yesterday, and the economic docket did little to halt the slide. Figures released yesterday showed that personal income in the US has stagnated, at a level of 0.3%, while personal spending has dropped, from 0.3% to 0.00%, suggesting that wages are not increasing across the country, and regardless of this, consumers are holding onto their money; which is not good for the economy.

The market will focus on US consumer confidence figures that will be released today. The market has forecast a slight increase in consumer confidence, which would be positive for the US currency, as it would indicate a perceived improvement in business conditions, employment and personal spending.

Mike Hood
KBRFX

Foreign Exchange Daily Market Update 27/05/11

Whilst still enjoying the gains it made following Wednesday's Gross Domestic Product (GDP) figures, the Pound moved to a two week high against the US Dollar following a less than supportive round of US figures. The Pound was also supported by report from research firm GfK that consumer confidence had improved in the UK. According to the report consumer confidence rose by 10 points to a reading of -21 to mark the second largest increase since May 1993. Another turn of good news came this morning, when according to Nationwide Building Society, house prices rose 0.3% in May to beat estimates for a 0.1% increase. The remainder of the day will be devoid of UK figures leaving the Pound once again subject to wider macro-economical influences.

In a light day of economic figures, the Euro performed well against the US Dollar during the first half of the day. The Euro was bolstered by rumours that the Chinese government were interested in buying Portuguese bonds. If the rumours are true then this would provide the Euro-zone with some much needed funding as the International Monetary Fund (IMF) is unwilling to commit further funds to the region until refinancing guarantees for debt ridden nations, including both Portugal and Greece, are approved.

Germany's Consumer Price Index (CPI) for May headlines the European session today with forecasts calling for price growth to slow annually from 2.4% to 2.3%. Although this predicted outcome would mean that inflation remains elevated, it does take some of the pressure off the ECB to raise interest rates, which is widely expected to have a negative impact on the weaker European nations. Elsewhere on the docket there are a number of Euro-zone confidence indicators for May, the most influential of which being the economic confidence survey and this is expected to tick slightly lower from 106.2 to 105.7. Weaker sentiment toward the Euro-zone is likely to push the currency lower.

The US Dollar lost ground today as foreign exchange traders were disappointed by yesterday's revisions to first quarter GDP figures. Economists had been expecting that the US economic growth rate would be revised up from 1.8% to 2.2%, however the figure was left unrevised. The personal consumption component of the GDP total was revised down from 2.7% to 2.2%, missing estimates for the figure to rise to 2.8%. Similarly core consumption slipped below the consensus of 1.5% to 1.4%. This week's jobless claims figures provided a mixed outlook for the US labour market, as ongoing claims fell from 3.711 million to 3.69 million while initial jobless claims rose from 409,000 to 424,000. The overall picture is one of a very weak US economy which pushed the GBP/USD currency exchange rate to a high of 1.64, while against the Euro the exchange rate hit a high of 1.4203.

The US docket will end the week with more figures on personal spending. In April personal spending is expected to slow from March's growth rate of 0.6% to 0.5%, (although given that consumption was weaker in the GDP total this may well be revised down). The core reading of personal consumption (which excludes food and energy purchases), is however expected to pick up slightly from 0.1% to 0.2%. Unlike the GDP personal consumption component which only covers data gathered from January to March, today's monthly figure will provide a more timely and up-to-date picture of consumer spending. Elsewhere on the docket, pending home sales for April are set to contract by 1.0% following March's 5.1% increase. However given that new home sales figures released on Tuesday for the same period showed a bigger than expected increase, then its possible that the outcome may be announced higher, if so then the Dollar could pick up as the housing market improves, but losses on the currency could be seen if pending sales fall below expectations.

Foreign Exchange Daily Market Update 26/05/11

The Pound made strong gains against both the Euro and the US Dollar during yesterday's trading session following the release of this year's first quarter Gross Domestic Product (GDP) figure. According to official figures from the Office for National Statistics (ONS) the UK economy grew at 0.5% quarter on quarter to remain in line with analyst expectations. A breakdown of the GDP total revealed that growth was spurred by exports having risen at a rate of 3.7%, up from 1.7% in the previous quarter, and with imports falling by 2.3% the country's net trade deficit fell to £5.7 billion down from £11.5 billion in the last quarter of 2011. However, weaker than expected household consumption and investment dampened the economic recovery and prevented the Pound from making further gains. With the UK's growth still subdued, many foreign exchange traders speculate that Bank of England policy makers will refrain from raising interest rates later this year. However the Organisation for Economic Co-operation and Development (OECD) stated, after praising the government's austerity programme, that the Bank of England should begin raising rates this year in order to prevent runaway inflation.

The well of UK economic data appears to have, for the most part, dried up for the remainder of the week, leaving the Pound exposed to effects of wider macro-economic factors such as risk aversion. The only scrap of data due for release today is May's consumer confidence survey by GfK, which is expected to show that consumer sentiment remained firmly entrenched at -31 since April. The expected outcome in consumer confidence would tally with the contraction in personal consumption shown in the overall GDP figure.

Yesterday's trading session resulted in some very choppy price action for the Euro, in particular against the US Dollar; where it closing the day slightly lower overall. The single currency continued to be weighed down by Greece's sovereign debt woes, and softer than expected consumer confidence readings in Germany. The Euro did manage to retrace some of it's loses following news that the Finnish Parliament had approved the Portuguese bailout, despite concerns that Finland might block the rescue package.

Another relatively quiet day of European data will mean that currency exchange traders will be interested in comments from the European Central Bank (ECB)'s President Jean-Claude Trichet, and executive board member Ewald Nowotny on European economy, and Lorenzo Bini Smaghi's comments on inflation when speculating the Euro's movements. Other than that, traders will be keeping a close eye on Greece for any further developments in whether a restructuring of its debt will take place.

Orders for durable goods fell in the US by 3.6% during April to outpace the forecast decline of 2.5%, while durables exclusive of transportation goods sunk by 1.5% to fly against a 0.5% expected increase. Falling demand for aircraft and disruptions to the supply of car parts lead to the declines. The contraction in orders was a sharp reversal to March's upwardly revised 4.4% increase, and supports the data from the Richmond and Philadelphia Federal Reserves, which reported a slowdown in manufacturing activity. The data weakened the Dollar's standing in the foreign exchange market, allowing the GBP/USD exchange rate push towards 1.63.

Looking ahead to this afternoon, revisions to the first quarter GDP readings for the US could push the Dollar higher and retrace some of yesterday's declines. Forecasts call for the US economic growth rate to be revised up to 2.2% annually, compared to the preliminary reading of 1.8%. Further to this, personal consumption is expected to pick up to 2.8% from 2.7% and the core personal consumption reading, which excludes food and energy in its calculations, is set to remain at 1.5%. The US Dollar could also find support from this week's jobless claims figures which are forecast to see initial claims fall to 404,000 to 409,000, while continuing claims is set to fall from 3.711 million to 3.7 million.

Foreign Exchange Daily Market Update 25/05/11

The British Pound performed well against the US Dollar yesterday, reaching a daily high of 1.6208, and against the Euro, closed the day where it had started at 1.1473. This was despite a worse than expected budget deficit for April. According to figures released by the Office for National Statistics (ONS), public sector net borrowing dropped to £9.95 billion, down from £17.88 billion. However, it was not as low as analyst's expectations for £6.5 billion. The outcome highlights the difficulty that the government faces in cutting back spending. The Pound performed fairly well despite more negative news, with credit ratings agency Moody's stating that they are reviewing their ratings on government supported banks, which include Lloyds and RBS, as it is believed that any withdrawal of government support would weaken their credit worthiness.

1st quarter GDP figures headline the UK's economic docket today. Preliminary readings showed that economic growth remained unchanged at 0.5% since the 4th quarter of last year to match estimates, while annually economic growth was at 1.8%. The outcome means that UK economy hasn't grown since the third quarter of last which is clearly poor sign for the UK's recovery. The breakdown of the GDP total revealed some mixed results with private consumption falling by 0.6% missing expectations for 0.1% increase. Imports were expected to recede by 0.7% but fell by 2.3%, and exports beat expectations by growing at rate of 3.7% against the 2.1% consensus.

Against the Dollar the Euro followed a similar path to the Pound, with the EUR/USD exchange rate pushing up to levels above 1.4130 by the middle of the US session. The Euro enjoyed a rally following the publication of Germany's IFO business confidence surveys. The data showed that the short-term outlook German firms had on current market conditions remained relatively unchanged from last month's reading of 114.2. However the 6-month forward looking index was slightly lower at 107.4 down from 107.7 indicating that businesses see risks to the economic recovery over the longer-term as the global economy slows.

In what will be a light day in terms of European figures the currency exchange market has already seen the result of Germany's forward looking consumer confidence survey, which came in just below estimates at 5.5 instead of 5.6. The data suggests that German consumers are becoming increasingly anxious, which could be caused by higher prices (notably food and fuel prices) or perhaps the debt woes of other Euro-zone member states such as Greece, and the potential impact that could have on their lives. The remainder of the docket will look at Italian retail sales which are set to tick lower in March and April's French jobseekers total, which is set to drop slightly, indicating a small improvement in the French labour market. .

The Dollar was broadly weaker against the other majors on Tuesday, as risk appetite settled back into the foreign exchange market. The US currency should have gathered strength as New Home Sales in April grew at an impressive rate of 7.3%, the highest rate of growth since December. The outcome overshot expectations for a 1.7% increase in the sale of new homes and brought the annualized total up to 323,000 units. Elsewhere on the docket the Richmond Fed manufacturing index fell sharply to -6 from 10 in May, greatly missing expectations for the index to edge lower to 9.

Today's docket contains more US housing market figures with March's House Price Index expected to show that the value of US homes fell by 0.5% month-on-month. April's durables goods orders have the potential to bring the Dollar lower, as forecasts call for a contraction of 2.5% following March's increase of 4.1%. Since durable goods are usually quite expensive, a slowdown in the number of orders placed is indicative of weaker consumer confidence and tighter credit conditions. Overall the docket looks set to weaken the US Dollar if the data comes in at expected levels, pushing the rate of exchange up on the GBP/USD and EUR/USD pairs.

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.