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

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 Foriegn Exchange Market Update

During yesterday’s market session we saw the Pound lose ground against the Euro but gain a slight amount versus the US Dollar. The GBPEUR rate opened at a daily high of 1.2459 and slipped throughout the day to close out at a daily low of 1.2419. The GBPUSD rate opened the day at 1.5902 but fell to a daily low of 1.5887 just after lunch. It regained some momentum in the afternoon, peaking at 1.5919 mid-afternoon, closing the day at 1.5907. There was no significant data released from the UK yesterday and none will come out today.

The Euro gained against the Pound and the US Dollar in the foreign exchange market yesterday with the EURUSD rate opening at a daily low of 1.2763. It then moved up to a daily high of 1.2820 an hour before it closed out at 1.2805. No data was released from the Euro-zone yesterday but today has already seen German Producer Price Index (PPI) be released; showing the change in prices paid by domestic producers, also known as the factory gate prices and the figure came out lower than expected at 1.5%. Today will also see the Euro Area finance ministers meet and discuss the goings on in the Euro-zone, focusing mainly on the Greek dilemma.

The Dollar weakened against both the Pound and the Euro in yesterday’s foreign exchange market session. The main data from the US yesterday was, existing home sales which saw a decrease from 4.79M to 4.69M. Today will see building permits be released, the number of new residential building permits issues during the previous month. It was 0.89M and is expected to fall slightly to 0.87M.

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

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 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

Yesterday the Pound fall slightly against the Euro in the foreign exchange market with the GBPEUR rate opening at 1.2282, climbing throughout the first half of the day, peaking to a daily high of 1.2307 just after lunch. However over the rest of the day it lost strength to close at a daily low of 1.2280, only marginally down from the opening rate. The Pound also weakened against the US Dollar during yesterday’s market session. The GBPUSD rate opened at 1.6012 and rose to a daily high mid-morning to reach 1.6021 but then lost strength over the rest of the day to close out at a daily low of 1.5932. Only one piece of tangible data was released yesterday, the British Bankers’ Association (BBA) loans for house purchases, the number of new mortgages approved for house purchases by BBA-approved banks which accounts for approximately 65% of all mortgages. The Governor of the Bank of England, Mervyn King, spoke yesterday at the Chamber of Commerce where his main concern was that banks do not have enough capital to absorb losses on bad loans which in turn makes it harder for them to borrow and provide credit needed by households and businesses. Today there will be no data being released from the UK.

The Euro gained strength against the Pound but lost some against the US Dollar during yesterday’s market session. The EURUSD rate opened at 1.3037, peaking early morning to a daily high of 1.3041 but then slipped down below the 1.30 mark to close out at a daily low of 1.2972. Yesterday the eurozone consumer confidence results were released, a survey on 2300 consumers in the eurozone, the figure coming out at -25.6, slightly higher then the previous result of -25.9 showing pessimism within the eurozone. This morning has seen German PMI (Purchasing Manager Index) figures being released, coming out lower than expected, 45.7 compared to the predicted rate of 48. This has seen the Euro lose strength against the Pound showing it may be a good time to be buying Euros. Later today the President of the ECB, Mario Draghi will speak at a closed-door meeting at the Bundestag, Berlin. The meeting is set to cover the budget, EU affairs and finance within the eurozone.

The US Dollar gained against both the Pound and the Euro in the foreign exchange market yesterday even though no data came out of the US. Today will see the Federal Open Market Committee (FOMC) meet and decide on whether to keep the key interest rate the same or change it. It is currently 0.25% and nearly all analysts believe it will be kept at this rate; however the FOMC statement on this contains their outlook on the economy in general and hints about future monetary policies which is why analysts keep a close eye on the releases.

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

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 27/02/12

The Pound closed out last week having lost considerable ground against the Euro; but almost unchanged versus the US Dollar in the foreign exchange market despite a week of choppy trading. The GBP/EUR exchange rate which opened on Monday at 1.2010; fell across the course of the week, to trade down at 1.1786 by Friday’s close – with the GBP/USD exchange rate also taking a sharp drop from 1.5851 at Monday’s open, dipping down to 1.5648 mid-week before recovering to trade back at 1.5873 by the close of play on Friday. The currency was not helped by the release of the Bank of England’s minutes from its last policy meeting; which showed that policy-makers were split over the size of the stimulus required by the UK economy, leaving the door open for the central bank to add further QE in May. The minutes also revealed that two policy-makers argued there was a risk of a prolonged period of depressed demand that would cause inflation to fall materially below target in the medium term. However, most MPC members argued a bigger increase than £50bn "risked sending a signal that the committee thought the economic situation was weaker than it was".

The week ahead will see some significant data released from the UK; most notably Tuesday’s Nationwide house price numbers, and Wednesday’s GfK consumer confidence survey results; which have the potential to spark volatility within the currency exchange market should there be any shock results.

The Euro gained considerable ground against both the Pound and the US Dollar in the currency exchange market last week; with the currency getting a large boost from the news that Greece has secured a second bailout worth approximately 130 billion Euros, and has won a 53.5% reduction in its debt burden to private creditors. This enabled the EUR/USD exchange rate to move up sharply from Monday’s open at 1.3197, to trade up at 1.3467 by Friday’s close. With Euro-zone countries seemingly ‘rallying’ round to agree the package for Greece, it has brought some sense of confidence back into the currency; but the larger problem still remains that these measures may not be enough to secure the longer-term (beyond 2-3 years) future of the country.

The week ahead is packed full of Euro-zone data, which could affect the currency markets. Tuesday will see the release of German CPI (inflation) figures, along with Euro-zone economic, industrial, services, and consumer confidence numbers. Wednesday will turn to the labour market, with the release of the latest German unemployment figures. Thursday will come back to inflation once again, but this time it is price-growth across the whole of the Euro-zone that will come under scrutiny; with the week closing out on Friday with Euro-zone producer price results.

The US Dollar managed to make good mid-week gains against the Pound, after the sombre Bank of England minutes, and positive Euro-zone news, but soon fell back; losing ground overall against the Euro throughout the week. This was despite positive data from the US, with existing home sales showing a good gain for the month, along with February’s University of Michigan confidence numbers also showing a positive upturn.

There is plenty of data scheduled for release from the US this week, with the market focus more than likely to be on Wednesday 4th quarter GDP numbers. Aside from this, Tuesday’s durable goods orders, and Thursday personal consumption and ISM manufacturing figures could give the Dollar some direction within the market.

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 09/11/11

The Pound finished yesterday a touch lower against the Euro, and marginally higher against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate fell from the mornings open at 1.1663, to trade at 1.1656 by the UK market close. The GBP/USD exchange rate though closed at 1.6077; higher than the open at 1.6062, with the rate also breaking 1.6100 during mid-afternoon. Economic data released from the UK yesterday showed that industrial production rose annually, but fell monthly for September, and manufacturing production showed a positive increase both annually and month-on-month. The latest NIESR GDP estimate for October produced a reading of 0.5%, which was exactly in line with the market forecast, and is exactly the same as the last quarter’s actual reading.

This morning will see the UK’s visible trade balance numbers cross the wires, with the expectation to see a further increase in the UK’s trade deficit, highlighting a lack of export activity despite the fact that the Pound is still quite weak overall.

The Euro closed higher against the Pound and the US Dollar in the currency exchange market yesterday; this was despite the news that Italian Prime Minister Silvio Berlusconi is set to step down after losing a vote of confidence, and that bond yields in Italy are reaching dangerous levels. The EUR/USD exchange rate closed higher on the day, up from the morning’s open at 1.3770, closing at 1.3792. There was some positive news from the Euro-zone; with Germany’s trade balance showing a further increase in the nation’s trade surplus, up from €11.8billion to €17.4billion.

There are no significant data events scheduled for the Euro-zone today; but the market will be watching closely for any comment or developments in regards to Greece and Italy, which could well give the Euro currency some direction.

The US Dollar lost some ground versus the Pound and the Euro yesterday. Despite the increasing turmoil in Europe, the currency has been steadily reversing last week’s gains. There was no significant data released form the US yesterday, with market movements being attributed to shifts in risk sentiment.

Today will see Federal Reserve Chairman Ben Bernanke speak at a Fed conference on small business. The market will watch closely for any indication from the central bank chief in regards to business conditions, and also credit conditions for companies.

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 08/11/11

The Pound finished yesterday slightly lower against the Euro but a touch higher versus the US Dollar in the foreign exchange market. The GBP/EUR exchange rate fell from the morning’s open at 1.1669 to trade at 1.1655 by the close of the UK business day, with the GBP/USD exchange rate opening at 1.6003, and closing at 1.6022 following some choppy trading. There was no economic data of not released form the UK yesterday.

This morning will see the release of September’s industrial and manufacturing production figures, with the market forecast for an annual increase in manufacturing production, but industrial production is forecast to fall both annually and monthly. Later on today will also see the latest NIESR GDP estimate for October cross the wires. Any sharp downward revision could be damaging for the Pound, but considering the Bank of England’s addition of an extra £75billion towards monetary stimulus, the likelihood is for a reading around 0.50%, which should be positive for the market.

The Euro gained a touch against the Pound and the US Dollar yesterday in the currency exchange market, with the EUR/USD exchange rate rising throughout the day, up to 1.3745 at the day’s close, from the morning’s open at 1.3714. Economic data released from the Euro-zone yesterday was largely disappointing though. Euro-zone Sentix investor confidence fell for November, from -18.5 to -21.2, with Euro-zone retail sales also falling; both annually and month-on month, from -0.1% to -1.5% and from 0.1% to -0.7% respectively. German industrial production figures also showed a sharp decline for the month of September, dropping from -0.4% to -2.7% annually.

This morning has already seen some positive data from Europe, with the German trade balance showing an increase in the nations trade surplus from €11.8billion to €17.4billion, which is beneficial for the country, and may be one positive result of a weakening Euro currency, which enables other countries to buy goods from the nation at a cheaper price.

The US Dollar fell against the Euro and the Pound yesterday, losing some of the previous weeks gains based on shifts in risk sentiment. The overall outlook for the US is not great, with the Federal Reserve clearly worried about the possible effect of European default on its own shores. There has been a small improvement in the labour market over the past month, and figures released yesterday showed that consumer credit increased for the month of September, which should see more money flowing through the economy.

There are no significant figures set for release from the US today, so movements will come from shifts in risk sentiment, and possible unfolding of the situation in Europe. There has been talk of an expansion to the EFSF in the coming days, and also there are rumours of Italian PM Silvio Berlusconi stepping down. There is also set to be an announcement made very soon on Greece’s new Prime Minister, and then there will be further discussion to try and resolve the funding situation for the country before it runs out of cash.


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 07/11/11

The Pound closed out last week much higher against the Euro, but barely unchanged against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate which opened on Monday at 1.1353 rose steadily throughout the week to close on Friday up at 1.1641. The GBP/USD exchange rate however, following some very choppy trading; opened the week at 1.6088 and after some rangy movements closed slightly lower at 1.6050. The big economic news for the week from the UK was the reading of 3rd quarter GDP, which showed that the UK economy grew at a rate of 0.5% through the 3rd quarter, a sharp advance from the previous quarter. The annual growth rate was also recorded at 0.5%, which was positive considering the market expectation was for levels at around 0.3%.

The week ahead will see some high-level market data, particularly Thursday’s Bank of England interest rate decision. Despite the ECB making a surprise rate-cut last week, there is no expectation for the UK to follow suit. Following the addition of an extra £75billion in monetary stimulus it will be interesting to see if there is any change of rhetoric from the MPC, but it is more than likely that market participants will have to wait for the release of the meeting’s minutes to gain any in-depth understanding of views and policy over the coming months. Aside from the rate meeting, Tuesday’s NIESR GDP estimate for October will be closely watched by the market for future growth expectations, along with industrial and manufacturing production numbers that are set for release on the same day. Wednesday’s trade balance numbers are more than likely to show the continual increase in the UK’s negative trade deficit, despite a previous months increase in export activity.

The Euro suffered heavily against both the Pound and the US Dollar across the past week in the currency exchange market. The EUR/USD exchange rate fell from 1.4170 at the week’s open, to trade down at 1.3786 by the week’s close. The currency was not helped by indecision and turmoil within the Euro-zone, focused heavily on the drawn-out decision of EU leaders in regards to a solution to the Greek bail-out situation. With Greek Prime Minister George Papandreou narrowly surviving a vote of confidence following a turbulent week fro the country, it was announced that he has now stepped down, and a unity government will be formed. It is crucial for any confidence in the Euro to remain that a structured plan is put in place to prevent the nation defaulting. Aside from the Greek debt situation, at his first European Central Bank rate decision as President, Mario Draghi confirmed the decision by the central bank to reduce the base interest rate in the Euro-zone from 1.50% to 1.25% citing deteriorating conditions across the euro-economy and the possibility of recession.

The week ahead has started with rumors that Italian President Silvio Berlusconi may be set to step-down; with his country deep in recession, and further austerity measure to be implemented, his leadership has been heavily called into question over the past few weeks. Political unrest may serve to undermine the currency further, so the Euro will face a tough week. Economic data set for release this week will include Tuesday’s German trade balance numbers; which will be watched closely to ensure that German exports are still thriving, which is key to growth in the country. Thursday will be a potential market-moving day, with the release of November’s ECB monthly report; which is sure to spark interest in the central bank’s outlook for growth and lending conditions. Also there may be comment passed on the involvement of the ECB in regards to bank-funding and also sovereign bond purchasing. German CPI (inflation) figures will also cross the wires on Thursday, with the market forecast for price-growth to hold steady – any increase would be worrying for the ECB, especially considering the reduction in the base interest rate this month.

The US Dollar benefitted from its ‘safe-haven’ currency status again last week, gaining rapidly against the Euro, and also pulling back slightly versus the Pound. Despite the Federal Reserve holding the base interest rate at their latest meeting, Fed Chairman Ben Bernanke’s post-decision press conference cast some gloom on the market, confirming that the outlook for economic growth has slowed rapidly, and that the European debt crisis is weighing heavily on the US’s prospects, with the ‘significant downside risks’ to economic growth. Bernanke stated "Unfortunately we can't disassociate ourselves from Europe," he said. "The things that happen there do affect us." There was some slightly positive news form the US last week, with the overall unemployment rate falling to 9.0% down from 9.1% following an upward revision to the previous month’s non-farm payroll numbers.

This week will see Fed Chairman Ben Bernanke speaking at the Fed Conference on small business this week, with the market sure to take any comments from the Chairman in regards to business conditions as direction from the central bank. The currency may well again benefit from shifts in risk sentiment, as the ongoing issues in Europe increase. Towards the end of the week the US Dollar may take direction from Thursday’s trade balance numbers, and Friday’s market-moving University of Michigan confidence index numbers.

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 27/10/11

The Pound finished marginally higher against the Euro, but fell just over a cent against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate picked up from the morning’s open at 1.1490 to trade at 1.1495 by the close of the UK business day. The GBP/USD exchange rate however; fell across the course of the day; falling from 1.6011 at the morning’s open, to trade down at 1.5907 by the market close. There was no significant economic data released from the UK yesterday, with the depreciation against the US Dollar possibly being attributed to shifts in risk sentiment in regards the on-going woes in Europe.

Today will see the release of October’s CBI reported sales numbers; with the market forecast for a decline to around -16, lower than the previous month’s reading of -15, which could put a small amount of pressure on the Pound.

The Euro declined slightly against the Pound, but fell more heavily against the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate fell throughout the day, from the market open at 1.3933 to trade down at 1.3837 by the close of the European trading session. The European Central Bank (ECB) released its bank lending survey yesterday; showing that demand for year-long loans from the ECB was weaker than analyst’s initially forecast. The central bank announced it will lend banks 56.9 billion euros for 12 months; less than the median forecast of 70 billion euros in a Bloomberg News survey, and will also lend 44.6 billion euros for three months tomorrow, when 85 billion euros in three-month loans mature. The 3-month figure is also less than the 50 billion euros predicted in the Bloomberg survey.

One of the bigger events in focus for Europe yesterday was the EU leaders’ summit; which had slightly spooked markets with the cancellation of the finance ministers meeting – indicating that a detailed solution to the current debt woes was still far off. There was some resolution last night however, with the announcement that EU leaders have agreed to extend the EFSF fund to around €1 trillion, and will force banks across the region to increase their capital reserves. In regards to Greece specifically; the nation will have to reduce its public debt to 120% of GDP by 2020, with private investors agreeing to a voluntary bond swap that will wipe away 50% of the country’s obligations. Euro Zone member states will contribute up to €30 billion in additional capital while the “official sector” – presumably the EU – will provide additional financing up to €100 billion, for a total of €130 billion in new aid. This may bring some comfort to the market; but as many market experts have indicated, this is not a complete resolution, and may only serve to extend the problem.

In regards to economic data from Europe today; we will see the release of German CPI (inflation) figures for October, which are expected to show a slight slowdown in inflation which would be welcomed by the region. The Euro-zone business climate indicator figure for October will also cross the wires today, with the expectation for a fall in the level, which would not be positive for the single-currency.

The US Dollar did benefit from the European worries yesterday; gaining nearly a cent against both the Pound and the Euro. There was disappointing economic data released from the US though; with September’s durable goods orders showing a sharp drop from -0.1% to 0.8%.
Today will see the release of pending home sales numbers for September, which are expected to fall, but are unlikely to influence the market too much as the main focus will be on the reading of 3rd quarter (annualized) GDP this afternoon. The market forecast is for an increase in growth to around 2.5% which could see the Dollar gain some further strength in the market.

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 26/10/11

The Pound finished yesterday slightly higher against the Euro, but a touch lower against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate which opened at 1.1491 finished the UK business day trading at 1.1501 with the GBP/USD exchange rate closing at 1.5994, down from the morning’s open at 1.6007 following a very choppy trading session. There was a small disappointment in terms of UK economic data yesterday as September’s BBA loans for house purchase numbers showed a decline from 35,009 to 33,130 amid market forecasts for a sharp increase.

There is no significant market-moving data scheduled for the UK today; leaving the currency open to shifts in risk sentiment and news from the world’s other major economies.

The Euro ended the day marginally lower versus both the Pound and the US Dollar in the currency exchange market. The EUR/USD fell across the day from the morning’s open at 1.3927, to trade at 1.3906 by the market close. There was some positive data release form the Euro-zone, with November’s German GfK consumer confidence survey showing a small increase to 5.3, up from the previous month’s reading of 5.2.

Today is likely to be a very high-pressure day for the Euro. This morning will see the European Central Bank (ECB) release its latest bank lending survey; which will give some insight into how much extra capital Euro region financial institutions have been seeking; in what are turbulent times for banks trying to reduce their risk levels and steady their balance sheets. The main focus though will be on the EU summit in Brussels; with the market expecting European leaders to announce an increase in the size of the European Financial Stability Facility (EFSF) to around €1 trillion, a commitment to a further Greek bail-out and also an injection of further capital into European banks Despite the market feeling that resolution may be nearing; there has been a shock in the cancellation of the EU finance ministers meeting that was scheduled for today; which would suggest that a detailed solution is unlikely to be produced this evening. There are huge political connotations to any sort of resolution, with many European nations most notably Germany facing the possibility of political rebellion as many parties feel that the risk being imposed to support other member states will prove to be the beginning of the end.

The US Dollar, which would traditionally benefit from turmoil in world markets failed to make any significant gain against the Pound yesterday, and only rose marginally against the Euro. The currency was hit by a hefty drop in consumer confidence levels for October, the headline number falling from 46.4 to 39.8 amid a progressively worsening outlook across the nation.

Today will see the release of September’s durable goods orders figures, with the market forecast for a fall in orders, from 0.1% to around 0.9%, which could see the Dollar weaken further.

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 25/10/11

The Pound closed out the day slightly lower against the Euro, but higher versus the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate fell from the morning’s open at 1.1485 to trade down at 1.1477 by the UK market close. The GBP/USD exchange rate however picked up from 1.5952 to trade up at 1.5983 by the market close, with the rate breaking 1.60 in the early hours of this morning; before pulling back slightly. There were no significant data releases from the UK yesterday, with the currency market responding to shifts in risk sentiment and news from the world’s other major economies.

This morning will see the release of September’s BBA loans for house purchase figures, with the market forecast for there to be an increase in the overall number; from 35,226 in the previous month to around 36,000; which could be positive for the Pound as it would indicate an improvement in a small part of the credit market.

The Euro lost ground against the Pound, put pulled back against the US Dollar yesterday in the currency exchange market. Despite ongoing issues in regards to the regions debt woes, the currency managed to regain nearly half a cent against the Dollar, the EUR/USD exchange rate rising from 1.3889 to trade up at 1.3925 by the market close. The overall view of yesterday’s economic data released from Europe was negative, with Euro-zone PMI manufacturing and services indices both falling in October, as well as German PMI manufacturing falling for the same period. There was a small increase in German PMI services data for October, but it was not enough to change the negative outlook.

This morning has already seen the release of German GfK consumer confidence numbers for November, and there was a surprise pick-up in the overall level, from 5.2 to 5.3 for the month. The news had hardly any effect on the market though, with the Euro still facing the potential of some very choppy movements in the coming days.

The US Dollar weakened against both the Euro and the Pound in yesterday’s trading, and the currency was not helped by negative data released; with the Chicago Fed National Activity Index for September showing a decline from the previous month’s level of 0.59, down to 0.22.

The currency is likely to take direction from today’s key release of consumer confidence numbers for October, with the market forecast for an increase in positivity, which could help the Dollar regain a foothold in the market, following almost a full week of declines against the Pound. Augusts’ house price index figures will also cross the wires; with the expectation to see a decline overall; which while negative is likely to be overshadowed by the consumer confidence figure.

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 24/10/11

The Pound closed out last week higher against both the Euro and the US Dollar in the foreign exchange market. The GBP/EUR exchange rate picked up across the course of the week, from Monday’s open at 1.1384 to trade up at 1.1489 by the close of the UK business day on Friday. The GBP/USD exchange rate also followed a similar pattern, with the rate opening on Monday at 1.5814, and closing on Friday up at 1.5942. This was despite a worrying inflation outlook from the UK, with the latest CPI figures released showing that the annual rate of price-growth rose to 5.2% from 4.9%, way above the Bank of England’s 2.0% target. The main market focus for the UK though was on the release of the Bank of England’s minutes from its last policy meeting; with the minutes showing that policy-makers voted unanimously (9-0) to inject a further £75billion into the economy over the coming months, and also discussed the possibility of the amount being as much as £100billion. The central bank was also united in its decision to keep interest rates at a record-low of 0.5%, despite inflation being at record levels; the latest figures showing price-growth standing at 5.2%. Governor Mervyn King warned that Britain was in the grip of the world’s worst ever financial crisis, and that the British economy would stall without the combination of further quantitative easing and ‘ultra-low’ interest rates. Despite UK government cutbacks, public sector net borrowing figures for September released last week showed an increase, from the previous month’s level of £10.9billion to £11.4billion. Public finance figures also showed an increase in the amount of money financed to the UK government, from £11.8billion to £19.9billion.

The week ahead will be much lighter in terms of economic data for the UK. Tuesday will see the release of the latest BBA loans for house purchase figures, with the market forecast for an increase in the figure for September. Friday morning could well see the main data release of the day affect the Pound’s standing in the market, with the release of GfK consumer confidence numbers for October released in the early hours. The market expectation is for no change in the index, but with increasing inflation, and a worsening jobs market in the UK, there is potential for a downturn in the figure.

The Euro finished last week lower against the Pound and the US Dollar in the currency exchange market. The currency has been coming under fierce pressure as EU leaders are still trying to reach a solution for the debt issues across the region, with a number of market participants seeing potential ongoing problems for the Euro-zone even if a solution is agreed upon; with European banks needing to strengthen their balance sheets, and the possible involvement of the ECB being brought into question. The EUR/USD exchange rate fell across the course of the week, from Monday’s open at 1.3890, down to 1.3659 by the close of the UK business day on Friday. Economic data released form Europe last week was pretty negative, with Euro-zone consumer confidence falling once again for October; down to -19.9 from -19.1, and also ZEW economic sentiment figures showing a decline from -43.3 to -48.3 for the same period.

This week will see some high-level market events, with Tuesday’s release of German GfK consumer confidence numbers, as well as Thursday’s German CPI (inflation) figures, and the latest Euro-zone business climate survey. The main market focus though is more than likely to be Wednesday’s market events, which will see the ECB release the results of a bank lending survey, and will also see EU leaders meeting at a debt summit, to try and come to agreement on an ongoing plan top try and restore some market credibility and financial stability to the region. The Euro could face even more pressure if there is no sign of a positive progression from this summit, with the market primed to punish any lack of tangible solution.

The US Dollar certainly benefitted from the debt woes in Europe last week by gaining against the single-currency across the week. The US Dollar however lost ground against the Pound, trading nearly a cent and a half lower against the Pound from Monday through to Friday. Data released from the US was fairly mixed, with CPI (inflation) rising annually in September, from 3.8% to 3.9%. Producer prices though held firm at 2.5% for September. The release of the Federal Reserve’s beige book economic survey showed a mixed outlook for the nation; with overall economic activity continuing to grow in September, albeit slowly, but with businesses expecting this to be ‘modest’ over the coming months.

There will be plenty of economic data crossing the wires form the US this week. Tuesday will see headline US consumer confidence figures released, with the market forecast to see an increase in positivity. Wednesday will see the release of durable goods orders figures for September; which are expected to show a sharp downturn. Thursday will be data-heavy for the US with 3rd quarter GDP figures, pending home sales and personal consumption numbers crossing the wires. The week will round off with Friday’s release of personal income and spending figures along with October’s University of Michigan confidence index, which is projected to show an increase for the month.

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 20/10/11

The Pound closed out yesterday higher against both the Euro and the US Dollar in the foreign exchange market. The GBP/EUR exchange rate finished the day at 1.1465, up from the morning’s open at 1.1407, with the GBP/USD exchange rate also closing higher, up from the morning’s open at 1.5756 to 1.5803 by the close of the UK business day. The main market focus for the UK yesterday was on the release of the Bank of England’s minutes from its last policy meeting; with the minutes showing that policy-makers voted unanimously (9-0) to inject a further £75billion into the economy over the coming months, and also discussed the possibility of the amount being as much as £100billion. The central bank was also united in its decision to keep interest rates at a record-low of 0.5%, despite inflation being at record levels; the latest figures showing price-growth standing at 5.2%. Governor Mervyn King warned that Britain was in the grip of the world’s worst ever financial crisis, and that the British economy would stall without the combination of further quantitative easing and ‘ultra-low’ interest rates.

This morning will see the release of September’s retail sales figures, with the market forecast for an increase in both the annual and monthly levels. This result would be positive for the Pound, as it would show that despite problems across Europe and a supposed lack of consumer confidence; that people are still spending, which is essential for any form of economic stability/growth.

The Euro fell against both the Pound and the US Dollar in the currency exchange market yesterday. The EUR/USD exchange rate fell from the morning’s open at 1.3812, to trade at 1.3780 by the market close, as news agencies worldwide reported on violent clashes between striking protestors and police in Greece. The country, which has, and is still employing deep austerity measures to ensure ongoing funding to prevent a default is seeing a 48 hour walkout by workers across the nation, in protest at the effect that searing government cuts are having on their wages, pensions, and quality of life. Ahead of crucial G20 talks this week, there is worry within the market that increasing the European Financial Stability Facility (EFSF) to help Greece could be misguided as it would create a circular problem; using a fund backed by Euro-zone countries to insure against default of the very same economies. It has been mooted that the ECB could increase its government bond buying activity, but there are worries that it would compromise its independence, and the fact that it is already carrying around €590billion worth of Portuguese, Irish, Italian, Greek and Spanish debt. With no clear solution easily viewable, the Euro could face firm pressure within the market over the coming days.

Today we have already seen the release of German PPI figures for September, which showed no change in the annual level of 5.5%, but an increase month-on-month from -0.3% to +0.3%. Later on today we will see the release of the German Economic Ministry’s GDP forecast, which will hopefully give some insight into the projected growth levels for one of the Euro-zone’s stronger nations; amid a current European debt situation which has the potential to send shockwaves across the globe. European consumer confidence numbers will cross the wires this afternoon, with the expectation to see yet another drop in the reading, which could add more pressure onto the European currency.

The US Dollar lost ground against the Pound, but took advantage of increased negative sentiment in the market towards Europe to gain against the single-currency (Euro) yesterday. There was also some positive news from the US, with housing starts for September showing an increase from the previous month, up to 658,000 from 572,000. CPI (inflation) figures showed a small increase in price-growth annually, from 3.8% to 3.9%, but inflation fell monthly, from 0.4% to 0.3%, which will ease some pressure on both US consumers and the Federal Reserve. The release of the Federal Reserve’s ‘beige-book’ economic survey showed a mixed outlook for the nation; with overall economic activity continuing to grow in September, albeit slowly, but with businesses expecting this to be ‘modest’ over the coming months.

The US economic docket for today will see the release of September’s existing home sales numbers, which are expected to see a downturn from the previous months reading of 5.03million to around 4.90million. The Philadelphia Fed Index will also report this afternoon, with the market forecast for an increase in positivity, but the figure to still remain at a negative level overall. The Dollar will be more likely to take direction from developing events across Europe today, as opposed to key data from home.

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