Daily Foreign Exchange Market Update

During yesterday’s foreign exchange market session the Pound lost ground against the Euro and the US Dollar. The GBPEUR rate opened at 1.2387 and moved to a daily high of 1.2403 early morning before closing the day out at 1.2378. The GBPUSD rate opened the day at 1.6008 and quickly hit a daily high of 1.6018 an hour after the open. It then proceeded to fall during the morning before it hit a daily low of 1.5962 just after lunch, closing the day out at 1.5996. Yesterday we saw no data be released from the UK but today the Bank of England will release their Financial Stability Report which assesses the overall stability of the financial sector at the time of publishing. We may see a significant movement in the GBP against other currencies as analysts will be looking for clues as to future monetary policies. Once the report has been published the Governor of the Bank of England, Mervyn King will hold a conference to discuss the topics covered, however we may see the main topic of conversation be about the announcement of Mark Carney as the new Governor, taking over from King next year.

The Euro saw gains against the GBP but overall it remained unchanged against the US Dollar yesterday. The EURUSD rate opened at 1.2923 before shooting up to a daily high of 1.2938 minutes after the open of the European market. It then slipped throughout the rest of the day, hitting a daily low of 1.2880 mid-afternoon before closing the day out again at 1.2923. The main news from the Euro-zone yesterday was that of German CPI (inflation) being released which came out in line with predictions at 1.9%, the same result as what came out for November 2011, showing no change in the price of living in Germany. Today German unemployment change has already been released which was expected to come out at 16K however it was much lower than predicted, coming out at 5K, some positive news for the German labour market.

Yesterday the US Dollar gained some strength against the Pound and remained unchanged overall against the Euro in the foreign exchange market. The only significant data coming out of the US yesterday were new homes sales which were lower than expected, 368K compared to the 387K that analysts predicted. Later today US GDP will be released with the figure set to rise from 2.0% to 2.8% the highest result since February. Unemployment claims are also set to be released later with the figure set to fall from 410K to 404K; if both these results are as expected we may see the US Dollar gain strength against the Pound so it could possibly be a good day for selling Dollars.

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 the Pound strengthened against the Euro but weakened against the US Dollar. The GBPEUR rate opened at 1.2449, falling during the first half of the week to a weekly low of 1.2382 on Wednesday morning before gaining strength across the latter half, peaking Friday morning to a weekly high of 1.2505, closing out slightly lower at 1.2477. The GBPUSD rate opened up at 1.6066 gaining strength throughout most of the week, peaking on Thursday morning to 1.6175 but then slipping down and closing out at a weekly low of 1.6027 on Friday afternoon. Last week the main piece of economic information released from the UK was PMI for manufacturing which is a gauge of manufacturing activity and future outlook. It was expected to fall slightly to 48.0 but actually came out a little lower than expected at 47.5. This week will see the Bank of England meet and decide on whether to change the asset purchasing programme and base rate or keep it the same at £375B and 0.5% respectively and analysts are expecting both to remain the same.

The Euro lost ground against both the Pound and the US Dollar during last week’s market session with the EURUSD rate opening at 1.2904, peaking Wednesday morning to 1.3021 but then closing out the week at a weekly low of 1.2845. Last week there were several pieces of significant data coming out of the Euro-zone including German CPI (inflation) which was higher than expected but the same as last month, 2.0%. German unemployment was also released and came stayed at 6.9%. The Spanish government released their budget last week which saw some improvement on the previous result but still a large deficit of -€46.11. This week will see the ECB meet and discuss the base rate decision which analysts predict to remain at 0.5%. Euro-zone PPI for September will be released early this week with the data set to come out slightly lower at 2.6% compared to the previous result of 2.7% showing a decreasing rate in the change in selling prices of goods.

The US Dollar gained strength against the Pound and the Euro last week in the foreign exchange market. The main data coming out was the unemployment rate which increased slightly from 7.8% to 7.9% and the change in non-farm payrolls which came out better then expected, increasing to 171K from 148K. This week is a very important week in US economics with Tuesday seeing Americans going to the polls to decide on who will be the next US President which will have some affect on the US Dollar.

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 move significantly against the Euro and the US Dollar in the foreign exchange market due to the release of UK third quarter GDP results. The GBPEUR rate opened at 1.2281 on Monday morning, dropping to a weekly low of 1.2247 on Monday afternoon before gaining strength throughout the rest of the week. When GDP results were released on Thursday the GBPEUR rate spiked above the 1.24 mark. It carried on rising until it peaked to a weekly high of 1.2496 Friday afternoon, closing slightly lower at 1.2442. The GBPUSD rate opened at 1.6036 and fell for throughout the first two days of trading, closing out on Tuesday afternoon at a weekly low of 1.5913. On the release of UK GDP results the GBPUSD rate peaked to a weekly high of 1.6144 on Thursday afternoon, closing the week slightly lower at 1.6091. The main data from the UK last week was the third quarter GDP results which were better then expected, coming out at 1% compared to the predicted 0.6% the catalyst for the strength in the Pound. This week will be a quiet week for UK data release with mortgage approvals being the most significant piece being released, a figure that shows the amount of mortgages approved in September, with the figure set to be 48.7K, up from the previous months result of 47.7K, showing a greater deal of confidence from lenders.

The Euro lost strength against the Pound and the US Dollar during last week’s market session; the EURUSD rate opened at 1.3057 and peaked to a week high of 1.3083 at the close of trade on Monday. It lost strength throughout the rest of the week, reaching a weekly low of 1.2882 on Friday morning before closing the week out slightly higher at 1.2935. There was not that much data released from the Euro-zone last week, the major piece being Euro-zone PMI which came out below the 50 mark at 45.3 showing an expected decrease in business conditions. This week will see more significant data being released with the first piece being German CPI (inflation) year on year for October which is expected to be 2%, slightly lower then the previous inflation figure of 2.1%. German unemployment rate is also set to be released with the figure expected to come out slightly higher at 6.9%, from 6.8% last month.

The US Dollar lost ground against the Pound but gained against the Euro in the foreign exchange market last week. The major data release was the GDP figure that was higher then expected, 2% compared to 1.8% showing a heightened level of growth in the US economy. This week will be a fairly busy week for data release with personal consumption expenditure and consumer confidence both coming out later this week. Personal consumption expenditure is predicted to rise from 1.6% to 1.7% showing consumers are buying more goods, therefore have a greater level of confidence. Consumer confidence, which assesses consumer sentiment regarding business conditions, unemployment and personal income and is also set to increase from 70.30 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 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 09/10/12

Yesterday saw the Pound weaken against the Euro and the Dollar in the foreign exchange market. The GBPEUR opened at 1.2389, a day high but fell throughout the day to close at a low of 1.2354. The GBPUSD rate followed a similar pattern with it opening at 1.6093 and slipping down to 1.6031 by the close of trade. Yesterday saw no information coming out of the UK.

Today will be a busy day however for UK data release, with some information having already been released such as the RICS house price balance for September which rose from the previous result of -18% to -15% showing surveyors are still reporting a loss but at an increasing rate. BRC sale, like-for-like, have also been released this morning with the result increasing by 1.5% even though the expected result was set to decrease by 0.2%. Industrial and manufacturing productions have been released and both came out with worse results than previous months, -1.1% and -0.7% respectively. NIESR GDP estimates are set to be released later with it set to increase by 0.2%, with positive results generally bullish for the Pound.

The Euro gained strength against the Pound but lost some against the Dollar during yesterday’s market session. The EURUSD opened at a high of 1.2988 but slipped down to 1.2937 early afternoon before closing slightly higher at 1.2988. Yesterday saw German trade balance falling from 19.6B to 16.3B, a major figure in the Euro-zone as Germany is Europe’s largest economy and renown for exporting so lower results can put pressure on the Euro. The other major information that has already come out of the Euro-zone yesterday was the Sentix investor confidence, improving slightly from -23.3 to -22.2 showing a greater amount of confidence in the Euro-zone.

One of the main reasons for the Euro weakening is because Mario Draghi will speak in front of the Committee of Economic and Monetary Affairs of the European Parliament where it is predicted he will say that difficult times are still ahead and that Euro area leaders should carry on implementing the necessary fiscal reforms in order to protect the economy and that we should not lose confidence in the Euro. German Chancellor, Angela Merkel is set to meet with the Greek government in Athens today to discuss the necessary austerity cuts and other ways to save the Greek economy.

The Dollar gained strength against both the Pound and the Euro yesterday despite no data being released from the US. Today will also see no data being released.

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 18/08/11

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The Pound made good gains against the Euro, and soared against the US Dollar in the foreign exchange market yesterday. The GBP/EUR rate moved up from the morning’s open at 1.1420 to 1.1486 by the end of the day, with the GBP/USD exchange rate rising from 1.6434 up to 1.6577 by the close of the UK business day. The morning’s economic data from the UK however was not entirely positive; with the unemployment rate rising from 7.7% to 7.9%, the claimant count rate also increasing, from 4.8% to 4.9%, and jobless claims rising from 31,300 to 37,100 for the month of July. The minutes released from the Bank of England’s last policy meeting showed a complete majority vote of 9-0 in favour of keeping the base interest rate on hold, with the MPC stating that ‘’the slowing in world demand growth’’ contributed to their decision, and that despite the central bank expecting inflation to peak near 5.0% this year, weak economic growth will cause inflation to fall quicker than earlier anticipated. There was an indication though that the bank may be paying serious consideration to further quantitative easing should it be required.

This morning has seen the release of UK retail sales figures for July, with the index showing a drop from 0.2% down to -0.2% annually, and month-on-month from 1.0% down to 0.2%. The Pound did weaken slightly on the figure’s release.

The Euro lost ground against the Pound, but made some small gains against the US Dollar yesterday; the EUR/USD exchange rate picking up from 1.4390 in the morning, to 1.4431 by the day’s close. The economic docket from Europe yesterday showed that CPI (inflation) in the Euro-zone held steady, the overall annual rate stalling at 2.5%, with the core index reading falling slightly, from 1.6% to 1.2%. Despite the drop against the Pound, the gain against the US Dollar may be attributed to the increased market sentiment and media coverage in regards to the possibility of the US sliding back into recession.

There are no economic events of real note scheduled for Europe today, so the currency will be open to shifts in market sentiment, and news from the world’s other major economies.

The US Dollar fell heavily against the Pound, and also slid against the Euro yesterday. The currency is facing fierce pressure in the market, as many leading market experts are tipping the nation to fall back into recession. Despite an additional $600 billion being pumped into the US economy in the last 9 months, overall growth has been well down on the previous year, and with the labour market showing increased weakness; house prices falling, and mortgage applications down there are fears that the US may suffer a ‘double-dip’. Economic data released from the US yesterday showed that the producer price index rose annually, from 7.0% to 7.2%, and excluding food and energy; rose from 2.4% to 2.5%.

Today will see the release of quite a bit of data from the US. Existing home sales figures are set to cross the wires this afternoon, along with the latest Philadelphia Fed index reading. The main focus though is likely to be on the release of CPI inflation figures, with the market forecast for a slight drop in the overall level of price-growth, from 3.6% to 3.3%, but excluding food and energy a small rise is expected; from 1.6% to 1.7%. Increased inflation would but pressure on the Federal Reserve, who have already stated they will be keeping the base interest rate at the current level well into 2012, possibly 2013.

The Market Team @ KBRFX

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Foreign Exchange Daily Market Update 29/07/11

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The Pound extended its gains against the Euro in the foreign exchange market yesterday, while remaining relatively unchanged versus the US Dollar. The GBP/EUR rate picked up from the day's open of 1.1370 and peaked at 1.1442 before closing out at 1.1420. The GBP/USD rate opened at 1.6330 and closed the day unchanged, but not before the currency pair hit a morning high of 1.6363 and then shifting to a low of 1.6290. On the docket the Confederation of British Industries' Reported sales index fell in July unexpectedly to -5 when forecasts had called for the index to increase from June's score of -2 to 2. The data's release coincides with the Pound's drop against the Dollar; however no noticeable difference was witness against the Euro.

This morning, the economic docket is scheduled to see June's Mortgage Approvals released, with expectations calling to for a rise from May's total of 45,900 to 46,000. The outcome would prove positive for the Pound.

The Euro weakened against both the Pound and the US Dollar over the course of yesterday's trading session. The EUR/USD rate slipped from the morning's level of 1.4350, with the pair closing the day at 1.4310. On the docket Germany's unemployment change figure for July headlined the European data set, with the number of unemployed falling by 11,000 which missed estimates for a contraction of 15,000 unemployed. To further compound the outlook of the Euro-zone and the Euro itself, July's sentiment indicators on the economy, the region's industrial and services sectors and consumer confidence all came in below expectations, except for the consumer confidence index which improved marginally but remained entrenched in the negative with -11.2.

On the European economic calendar the currency exchange market has already seen retail sales in Germany fall by 1.0% in June compared to a year ago, however this was a softer contraction than the forecasted 1.6% drop in sales. Looking ahead the annualised Euro-zone Consumer Price Index is expected to hold steady at 2.7% from May into July. The outcome may have little impact on the Euro as the data isn't entirely supportive of a rate hike by the European Central Bank which would've made the currency more attractive to foreign investors. Regardless the Euro is likely to remain under selling pressure today as debt woes continue to weigh on the region.

The US Dollar managed to gain some ground against the Euro as the economic calendar provided an improved outlook for the nation, however no such meaningful move was seen against the Pound. The economic docket revealed that the number of first time claimants for jobless benefits was lower than expected in the week ending 22nd July, with claims falling from 422,000 to 398,000. A rise in pending home sales during the month of June of 17.3% compared to the same time last year also helped to improve the US economic outlook.

Looking ahead, today’s economic calendar is scheduled to see 2nd Quarter GPD figures for the US released with economists forecasting that the annualised growth rate will slow from 1.9% to 1.8%, while the quarter-on-quarter rate is expected to hold steady at 2.0%. This may prove to be positive for the US Dollar given that the US economy is still evidentially growing, and the University of Michigan’s consumer confidence reading for July may also benefit the Dollar if the index increases in line with its 64 forecast reading. However with the US Congress having not yet agreed to raise the debt ceiling, volatility on the US Dollar may ensue when the US market opens, over shadowing any positive indications from today’s economic data.

Sam Kennison
KBRFX

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Foreign Exchange Daily Market Update 27/07/11

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The Pound picked up marginally against the Euro, and made significant gains against the US Dollar in the foreign exchange market yesterday. The GBP/EUR rate went up slightly from the morning’s open of 1.1267 to trade at 1.1303 by the close. The GBP/USD exchange rate however; rocketed from 1.6337 to 1.6390 throughout the day, breaking the 1.6400 level in the morning. The main data event from the UK was the 2nd quarter GDP reading, which showed that the annual growth rate fell from 1.6% to 0.7%, and the quarterly rate fell from 0.5% to 0.2%. This was viewed as positive by the market though, with the quarterly rate meeting median forecasts; and not falling below market predictions, which could have been disastrous for the Pound.

Today’s economic docket from the UK will see the release of the CBI’s business optimism figure; which is expected to show a slight increase in the reading; which would be positive for the Pound.
The Euro slipped against the Pound and the US Dollar yesterday; the EUR/USD rate coming down from the morning’s level of 1.4499, to trade at 1.4486 by the market’s close. The only figure of note released from Europe yesterday was the German GfK consumer confidence figures for August, which showed a slight drop in the index, from 5.5 down to 5.4. The constant debt woes surrounding Europe, and the fact that bigger nations such as Germany and France continue to be the nations that contribute the most financially; is starting to take it’s strain on the confidence of the general public in those countries; and is not positive for the currency as low consumer confidence tends to result in lower consumer spending, and retail sales.

The European economic docket today will see the release of German CPI (inflation) figures, with the market expecting no change in the annual inflation rate of 2.4%, and with the ECB’s last 2 rate-hikes expected to maintain inflationary pressures across the Euro-zone, any drop in the level may be viewed positively by the market, as there is a theory that further monetary policy tightening from the ECB in regards to inflation could do more harm to the economy than good.

The US Dollar continued to lose ground in the currency exchange market; with time seemingly running out for Congress to reach a solution for raising the debt ceiling, to prevent a default. Despite this, yesterday’s figures showed that consumer confidence rose for the month of July, from 57.6 to 59.5; suggesting that the US public will continue to spend freely over the coming months as sentiment improves. There was some negative news though, with new home sales figures for July reporting a drop, from 315,000 sales to 312,000 amid market expectations for an increase. This reinforces the fact that the housing market is still weak in the US, and could be one of the factors that slows overall economic growth.

Today will see some high-level market data, with durable goods orders for June set to report. The figure is expected to show a drop; but the market will be wary of any surprises, and even if the figure drops, but comes in higher than expected, the currency could benefit. This afternoon will also see the release of the Federal Reserve’s beige book report; which will give an insight into current economic conditions, as surveyed throughout the Fed’s 12 districts, and draws information from economists, market experts, and key business contacts. Any increased positivity could well see the US Dollar stat to regain some ground.

Mike Hood
KBRFX

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Foreign Exchange Daily Market Update 05/07/11

There wasn’t a huge amount of movement in the foreign exchange market yesterday, owing to the US holiday for the 4th of July celebrations. The Pound finished the day slightly lower against the Euro and the US Dollar; the GBP/EUR rate falling from the morning’s open at 1.1098 to 1.1076 by the close, and the GBP/USD rate dropping slightly from 1.6126 at the open, to 1.6092 at the end of the UK business day. The current exchange rates are almost at 2 week lows for both currency pairs, not the optimum time for buying Euros or buying Dollars. The economic docket from the UK yesterday showed a contraction in PMI construction for June, from 54.0 down to 53.8.

Today’s economic data from the UK is minimal, with PMI services figures for June reporting. The market has forecast a slight drop in the index figure, from the previous month’s level of 53.8, down to 53.5. While this outcome would not be beneficial for the UK economic outlook, it is unlikely to force major moves on the currency exchange market by itself. Update: The figure released at 09:30 actually saw an increase in the figure, to 53.9, reversing 3 months of decline, and the Pound saw a sharp appreciation following the release.

The Euro regained slightly against the Pound, and moved a touch lower against the US Dollar yesterday. The EUR/USD rate fell from 1.4534 down to 1.4527, a minimal movement considering the market patterns of the last few weeks; but not surprising considering the market had considerably less trading volume throughout the day due to the US holiday. The only data of note from Europe yesterday was Euro-zone PPI figures, which showed a downturn in the annual level, from 6.7% down to 6.2%.

Today will see Europe release the overall Euro-zone retail sales figures, which are expected to show a drop, from 0.8% down to 0.6%, not a positive sign for the retail sector, and also a negative nod towards consumer sentiment, as it shows the European public are not spending their money on the high-street. German PMI services figures have already been released this morning, and showed a drop, from 58.3 falling down to 56.7. Later this morning we will see the release of combined Euro-zone PMI composite figures, which the market has forecast to hold steady, at the previous reading of 53.6%.

The US Dollar made hardly any moves on the foreign exchange market owing to the 4th of July holiday, and consequently there was no economic data released yesterday.

Today will see the release of US factory orders, which the market is expecting to see a sharp upturn, from the previous month’s level of -1.2% to record a positive level of 1.0%,, which could be beneficial for the currency.

Mike Hood
KBRFX