Daily Foreign Exchange Market Update

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

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

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

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

Daily Foreign Exchange Market Update

During yesterday’s market session the Pound weakened against the Euro and the US Dollar with the GBPEUR rate opening at 1.2504, a daily high and fell throughout the day before closing at a daily low of 1.2469. The GBPUSD rate opened at 1.5985, dropping early morning to a daily low of 1.5964, peaking around lunch time to a daily high of 1.5989 before closing slightly higher at 1.5983. Yesterday was a quiet day for data release in the UK with the most significant piece being the month on month Halifax house price index which shows the change in prices of homes financed by HBOS. The previous figure was -0.4% and the actually figure missed the 0.5% forecast, coming out at -0.7%, showing lower activity in the housing market. There will be no data coming out of the UK.

The Euro gained strength against both the Pound and the US Dollar in the foreign exchange market yesterday with the EURUSD rate opening at a daily low of 1.2784 and closing out at a daily high of 1.2818. Yesterday the Bundesbank released the results for German factory orders which shows the change in total value of new purchase orders placed with manufacturers. The result came out much lower then expected, -3.3% compared to -0.3% showing that there is less activity in the manufacturing sector. Today the Greek government will meet to discuss austerity plans. They will vote and decide on whether the measures in the ‘medium term financial strategy 2013-2016’ will be implemented. There are expected to be a wave of 48 hour public sector strikes against wage and pension cuts but Prime Minister Antonis Samaras is expected to marginally win support for these austerity cuts.

The US Dollar gained some strength against the Pound but lost some against the Euro during yesterday’s market session. However this morning the Dollar quite a bit of ground against the Pound and the Euro due to the announcement of Barack Obama holding Presidency for the next four years.

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

Daily Foreign Exchange Market Update

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

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

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

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

Daily Foreign Exchange Market Update

Yesterday saw the Pound lose strength against the Euro and the US Dollar in the foreign exchange market, with the GBPUSD rate opening at a daily high of 1.6066 and falling throughout the day to close out at a daily low of 1.6020 at the end of trade. The GBPEUR rate opened at 1.2449, gaining strength before peaking at a daily high of 1.2453 around midday. It lost some ground throughout the rest of the day, dropping to a daily low of 1.2413 an hour before the end of trade where it closed out at 1.2423. There was not a lot of data coming from the UK yesterday, with mortgage approvals and change in net lending to individuals being the two most significant. An increase in mortgage approvals, 48.7K to 50K shows more confidence from lenders which can also be linked to the other data release, change in net lending to individuals, the amount of new credit issued to customers which hit a four year high. Augusts’ result was -0.3B and the predicted figure for September was 0.6B, however the actual result came out at 1.7B showing a much more confident outlook from lenders.

The Euro gained some ground against the Pound but lost some versus the US Dollar. The EURUSD rate opened up at 1.2904 remaining fairly unchanged throughout the day before fluctuating quite substantially several hours before the close of trade. It peaked at a daily high of 1.2924 and then dropped and closed out at a daily low of 1.2896 at the end of trade. Yesterday saw German CPI (inflation) being released with the figure coming out in line with the analysts expectations, 2.0%. As the headline figure for inflation, CPI tracks the change in price of a basket of goods bought by consumers and it reflects the purchasing power of the Euro in Germany. This morning saw German unemployment figures being released with the unemployment rate remaining unchanged at 6.9% but the unemployment changed being 20K, double the predicted figure of 10K which is bad news for the German labour market.

It was a good day for buying US Dollars as it gained against both the Pound and the Euro in the foreign exchange market. Yesterday US consumer expenditure was released, measuring a price change in consumer goods and services came out in line with the predictions of 1.7%. Like CPI results it is a good forecast of inflation but it differs from CPI as it only measures goods and services that are targeted towards and consumed by individuals. Today consumer confidence, data that assesses consumer sentiment on business conditions, employment and personal income will be released and it is set to rise from 70.3 to 73. Each month the Conference Board survey 5,000 people on their expectations on future economic conditions so an increase like predicted shows a greater level of confidence within the market by consumers.

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 20/09/11

The Pound held a fairly narrow trading range against the Euro, but fell against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate opened at 1.1494 and stayed pretty steady throughout the day, closing at 1.1491. The GBP/USD exchange rate however fell from the mornings open at 1.5729, starting its descent at around midday; leaving the rate down at 1.5679 by the day’s close. There was no significant economic data released from the UK yesterday, with rate movements based on shifts in risk sentiment and news from other major economies.

The UK economic docket today has no data of note set for release.

The Euro held steady against the Pound, and fell a touch against the US Dollar yesterday in the currency exchange market. The EUR/USD exchange rate ticked down across the day, from 1.3684 at the morning’s open, down to 1.3643 by the day’s close. Like the UK, there were no significant data releases from the Euro-zone yesterday.

This morning has already seen the release of German producer prices, with the resulting figures easing some pressure on the European Central Bank (ECB) in regards to price growth/inflation. Annually, producer prices fell from 5.8% to 5.5%, and month-on-month from 0.7% to -0.3%; which suggests that in line with the ECB’s predictions, inflation in the Euro-zone will fall in the medium-term. Later this morning we will see the release of the latest ZEW economic sentiment survey results for German and the Euro-zone, with the market forecast for an increased negative outlook, which in regards to Germany would hardly be surprising; with an increased public feeling in the country that far too much in terms of public funds is being diverted into failing nations such as Greece.

The US Dollar fells lightly against the Euro, but gained against the Pound yesterday. With no data releases from the US throughout Monday, the gain can be attributed to the Dollar beneficial status as a ‘safe-haven’ currency, and with news circulating that there is a possibility Greece may not receive it’s next round of funding from the International Monetary Fund, it may be that investors decided to shift funds into the US currency.

Today will see the release of August’s building permits and housing starts figures from the US, but with the market forecast for a drop in both numbers, the Dollar could come under pressure with confirmation that the housing market, particularly at base/new build level is still very weak; which also has a negative knock on effect to the construction and labour markets.

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

Foreign Exchange Daily Market Update 19/09/11

The Pound finished last week lower against the Euro, but almost unchanged against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate fell throughout the week, from 1.1651 at Monday’s open, down to 1.1455 by Friday’s close. The GBP/USD exchange rate however, opened at 1.5802 and closed at 1.5801 following some choppy trading which saw it range between 1.5883 and 1.5724. The big economic events of the week saw CPI (inflation) in the UK rise annually from 4.4% to 4.5%, and month-on-month from 0.0% to 0.6%. Jobless claims fell for the month of August, from 33,700 to 20,300 which was a positive sing for the UK’s labour market. The claimant count rate however, remained at 4.9%, and the overall ILO unemployment rate for the 3 months to July stayed at 7.9%.

This week is not overly heavy with UK economic news, but the data releases scheduled are of high market importance. Wednesday will see the release of the minutes form the Bank of England’s last policy meeting, and with a hint that there might be a slight shift in the voting numbers in regards to further asset purchasing, the market will be watching very closely for the all important majorities. The Pound could well react to any surprises in the accompanying statement from Governor Mervyn King, with traders keen to hear what the central banks outlook is for the coming months in terms of growth and inflation. Wednesday will also see the release of the latest public sector net borrowing and public finance figures; which will give an insight into how well the UK government are progressing with proposed budget cuts to try and improve the nation’s balance sheet. There are fears though; that vast cuts could be damaging to economic growth. Aside from Wednesday, the only major release will be Friday’s BBA loans for house purchases; with the market forecast for a slight decline in the number.

The Euro managed to regain some ground across the week, finishing higher against the Pound and the US Dollar in the currency exchange market. The EUR/USD exchange rate moved up from the week’s open at 1.3561 to trade up at 1.3791 by the week’s close, having reached a high of 1.3908 on Thursday. Economic data from Europe across the week was mixed; with industrial production figures showing good gains fro august, the annual level of activity increasing from 2.6% to 4.2%, and month-on-month from -0.8% to +1.0%. There was some worry though, with the European Central Bank’s (ECB) latest monthly report indicating that the central banks stance towards policy has become increasingly dovish, and it foresees increased downside risk to growth and inflation. The over-night index swaps market has indicated an increased market feeling that the ECB may cut interest rates before the end of the year. Euro-zone CPI (inflation) figures released last week showed that price growth held firm annually at 2.5%, but monthly rose from -0.6% to +0.2%.

The week ahead for Europe will see the latest producer price index figures for Germany released on Tuesday, along with ZEW economic sentiment survey results from Germany and the Euro-zone, with the Euro set to face choppy trading if there is any fall in the results. There is an indication that consumer sentiment may be increasing in negativity for Germany, with a firm public opinion that the nation is putting itself at risk by offering so much in terms of monetary support to countries like Greece. Thursday will be data heavy, with the release of PMI numbers for manufacturing, services, and the composite result from France, German and the Euro-zone combined. The currency will take direction from any surprises in the numbers, with the market forecast for an overall negative result. Thursday will also see the release of Euro-zone consumer confidence figures; with the expectation for a worse result than the previous month.

The US Dollar reversed a previous week of gains when it finished lower against the Euro and almost unchanged against the Pound last week. The currency which had benefited from increased negative risk across Europe, did slip somewhat; amid a very mixed week in terms of economic data and sentiment. Figures released from the US showed that advance retail sales for August fell heavily from 0.5% to 0.0%, with producer prices also dropping from 7.2% to 6.5%. CPI (inflation) showed an annual increase in price-growth from 3.6% to 3.8%, but industrial production took a downturn; from 0.9% to 0.2%. There was a surprise on Friday, with the University of Michigan confidence index showing an increase in positive sentiment, from a reading of 55.7 the previous month, up to 57.8 for September.

The US economic docket this week is fairly light in terms of data, with Tuesday set to see building permits and housing starts figures cross the wires. Wednesday will see the release of existing home sales figures, and the biggest data event of the week: the Federal Reserve’s latest interest rate decision. It is almost certain that there will be no change to the base rate; but the market is primed for any hints of further monetary stimulus (quantitative easing) which has been mooted over the past few weeks. The currency will take direction from any shift in policy or rhetoric; but with economic growth still in a fragile state, along with the nation's labour and housing markets, the central bank will have to be very careful with an potential policy moves.

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

Foreign Exchange Daily Market Update 16/09/11

The Pound fell against the Euro but made a small advance against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate which opened at 1.1448 started falling rapidly at around 2:00pm and closed down at 1.1408. Economic data released from the UK yesterday was disappointing, with retail sales figures for August showing a drop in both the annual and monthly levels, with a decrease from 0.0% to -0.1% annually and from 0.2% to -0.1% month-on-month.

There is no data scheduled for release from the UK today, leaving the currency open to market movements based on risk sentiment and news from the world’s other major economies.

The Euro continued to find strength in the currency exchange market, gaining against both the Pound and the US Dollar. The EUR/USD exchange rate advanced from the mornings open at 1.3762 and was at 1.3865 by the close of the UK trading day. The main focus for Europe yesterday was the release of the ECB’s monthly report, which explained the bank’s actions and movements over the previous month. The central bank confirmed that previous rate rises were to strengthen confidence, growth prospects and job creation, but left the rate unchanged last month as it foresees downside risk to growth and inflation. The bank stated that is sees liquidity levels within the Euro-zone as adequate, and that monetary expansion is continuing to ‘gradually recover’.

As with the UK, there are no real figures of note set for release from Europe today, so the currency will be open to movement based on news events around the world, and trading in the speculative market.

The US Dollar followed with another day of losses yesterday, closing lower against the Euro and also the Pound. After making a small overall drop the previous day, yesterday saw the GBP/USD rate move from 1.5763 up to 1.5807 at the day’s close, a good gain for the Pound. Figures released from the US yesterday showed that inflation rose annually for August, the annual price-growth rate increasing from 3.6% to 3.8%, but fell month-on-month from 0.5% to 0.4%. Industrial production also fell in August, from 0.9% to 0.2%, but the latest Philadelphia Fed Index showed a positive increase, with the previous month’s level of -30.7 coming up to -17.5, still negative overall; but a good increase in positivity.

This afternoon we will see the result of July’s Net long-term TIC flow figures from the US, which were previously negatively affected by the nations credit rating downgrade, and will give an insight into the balance of stocks, bonds and money market funds that flow to and from the US. The University of Michigan will release its latest confidence reading today, with the market forecast for a positive increase from 55.7 to 56.6, which could see the US dollar find some extra strength.

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

Foreign Exchange Daily Market Update 15/09/11

The Pound lost a small amount of ground against the Euro, but gained slightly against the US Dollar in the foreign exchange market yesterday. The trading ranges were much narrower than have been seen over the past week or so, with the GBP/EUR exchange rate dropping from the mornings open at 1.1526 to 1.1499 by the days close. The GBP/USD exchange rate though did see a small gain overall, with the morning’s level of 1.5741 moving up a touch to trade at 1.5767 by the end of the day. There was some positive data from the UK yesterday; focused on the labour market. The jobless claims change for August showed a decrease in the number; from 33,700 down to 20,300; a positive sign for the labour market, with the claimant count rate holding at 4.9% , and the overall ILO unemployment rate for the 3 months to July showing no change from levels of 7.9%.

This morning will see the release of Augusts’ retail sale figures from the UK, with the market forecast for no change in the annual level, but expecting a slight decline in the monthly figure. This would not be a positive sign for the overall economy, but provided the figure is in line with market expectations the effect on the currency should not be overly detrimental.

The Euro continued to regain some of its previous losses against the US Dollar in the currency exchange market, and also advanced slightly against the Pound yesterday. Figures released from Europe yesterday showed a welcome boost for Europe’s manufacturing sector, with industrial production increasing both annually, and month-on-month, from 2.6% up to 4.2% and from -0.8% to +1.0% respectively. Some of the Euro’s strength could be attributed to that figure, with the Euro-zone’s stronger economies such as Germany relying heavily on industry, and a clear indication of healthy growth will be beneficial to the overall economic picture. CPI (inflation) figures will also cross the wires, with any increasing inflationary pressures set to pose the ECB a serious problem.

The European Central Bank will release its latest monthly report this morning, and it will be closely watched by the market to gauge the potential for policy movement and the ECB’s change in outlook for the coming months. Following the last rate meeting, it became increasingly clear that the central bank is taking a more dovish stance to policy, and is wary of deteriorating economic conditions in the Euro-zone. With the overnight index swaps market now pricing in rate cuts by the end of the year, the market will be keen to try and gain insight into future policy moves from the bank, and the currency could well be affected by this.

The US Dollar finally saw some weakness in the market yesterday, finishing the day lower against the Euro and the Pound. The EUR/USD exchange rate moved up from 1.3656 at the mornings open to 1.3710 by the end of the day, a gain of over half a cent for the Euro overall. There was disappointing news from the US yesterday, with advance retail sales for August showing a drop from 0.5% to 0.0% and retail sales less autos also falling from 0.5% to 0.1%. Lower retail sales is considered to be an early indicator of economic slowdown, and linked closely to deteriorating consumer confidence; and the currency was clearly affected by this.

Today will see release of CPI (inflation) figures from the US, along with industrial production figures and the latest Philadelphia Fed Index. The currency will draw direction from any increased positivity, which the market will be looking closely for any signs of growth in the overall economy.

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

Foreign Exchange Daily Market Update 14/09/11

The Pound lost ground against the Euro, but made a small overall gain against the US Dollar in the foreign exchange market yesterday, following figures that showed rising inflation in the UK, and a wider trade balance; reiterating the nation’s huge reliance on imported goods, and lack of export activity. The GBP/EUR exchange rate fell from the mornings open at 1.1627 to trade at 1.1555 by the day’s close, with the GBP/USD exchange rate opening at 1.5794, and following some choppy trading finishing at 1.5802.

This morning has seen the release of some influential labour market data from the UK. The jobless claims change for August showed a decrease in the number; from 33,700 down to 20,300; a positive sign for the labour market, with the claimant count rate holding at 4.9% , and the overall ILO unemployment rate for the 3 months to July showing no change from levels of 7.9%.

The Euro managed to reverse some of last weeks losses against the US Dollar in the currency exchange market yesterday and also advanced against the Pound. There is likely to be some quite wide trading ranges with the European market facing some confusion over Greece’s current situation. The Greek Government have stated that they expect the nation to meet the first of it’s deficit targets to secure a further tranche of funding; but many market experts feel they will fall short. This has cast a cloud over the scenario, and following this morning’s downgrade of some French banks, there is a feeling that the Euro may suffer in the next few months.

The European economic docket only contains one piece of noteworthy data, with Euro-zone industrial production set to show a marked increase for July, which could see the Euro strengthen slightly. Any disappointment however could be detrimental to the currency, with some of the foremost European nations such as Germany relying heavily on their manufacturing sector.

The US Dollar finally showed some weakness in the market yesterday, making a small loss against the Pound and easing off just over a cent against the Euro. The EUR/USD exchange rate advanced from 1.3584 to 1.3674 throughout the day, following the Euro’s boost from the Greek government trying to appease the market with its positive rhetoric. Economic data from the US released yesterday showed a further drop in the US’s monthly budget statement, the figures for August revealing an increase in the negative balance from -90.5 billion dollars, to -134.2 billion dollars.

Today will see the release of advance retail sales figures from the US, along with the latest producer price index figures and business inventories. There is a fear that retail sales could show a marked decline, an indication of worsening consumer sentiment, combined with less money available in the economy. Should there be a severe drop in the levels, the Dollar could well weaken.

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

Foreign Exchange Daily Market Update 13/09/11

Follow us on Twitter! @KBRFX


The Pound remained relatively unchanged against the US Dollar during yesterday's trading session leaving conditions less than ideal for buying Dollars. The foreign exchange market bared witness to some choppy trading as the Pound slipped to an early morning low of 1.5790, against its US counterpart, before climbing to its afternoon high of 1.5886. As the European market drew to a close, the GBP/USD exchange rate fell to the day's low of 1.5771 before climbing back to 1.5853 by the close of the US market. Despite a lack of meaningful economic data from both Britain and the Continent, the Pound lost ground against the Euro to see the GBP/EUR exchange rate fall from its high of 1.1714 to 1.1574, however the market was still favourable for buying Euros.

This Tuesday the UK is scheduled to see August's Consumer Price Index (CPI) announced with expectations calling for an annual increase from 4.4% to 4.5%. The predicted outcome could potentially bolster the Pound's trading power against the other currencies. Along side the CPI's release, July's visible trade balance figures are expected to show that the UK's trade deficit has shrunk since June. Just like with the release of the CPI reading, the Pound could gain strength if trade deficit narrows in line with expectations.

The Euro gained ground against both the British Pound and the US Dollar during Monday's session, with currency exchange market seeing the EUR/USD exchange rate picking up from 1.3554 to a high of 1.3694. The Euro's reversal could be attributed to ECB President Jean-Claude Trichet's comments following the Global Economy Meeting held in Basel, Switzerland. The European Central Bank (ECB) President gave a show of strength when he announced that European central banks were "united" in guarding against inflationary and deflationary risks. He also stated that all Europeans "expect the Greek government to fully deliver on its commitments," and added that there is "superior interest" in observing that satisfactory results take place in Greece.

So far this morning, the Euro retraced some of its gains against the Pound to see the GBP/EUR exchange rate rise above 1.16, while against the US Dollar the exchange rate slipped to 1.3597. The Euros decline could be attributed to the better than expected growth rate in the French CPI reading for August. Normally higher CPI readings would be positive for the currency but considering that the ECB is has indicated that it may look to slash interest rates, price growth would only be a hindrance to the region.

With little economic data out from the US on Monday, the Dollar remained unchanged against the Pound, although the currency pair did test the lower ranges twice on Monday, but this was short lived as the exchange rate corrected itself to levels above 1.58. The same could not be said for the Dollar's performance against the Euro which overpowered the Dollar to see the Euro rate make gains.

Looking ahead the most significant piece of data to come out from the US will be August's Monthly Budget Statement which economists forecast to increase from a budget deficit of $90.5 billion to $132 billion. The outcome will likely have a negative impact on the US Dollar when the data is released at 19:00 BST.

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

Foreign Exchange Daily Market Update 12/09/11

Follow us on Twitter! @KBRFX

The Pound finished last week having managed to make an impressive gain against the Euro in the foreign exchange market; but having fallen heavily against the US Dollar. The GBP/EUR exchange rate which opened the week at levels of 1.1413, stayed fairly range-bound until Thursday’s Bank of England and European Central Bank (ECB) meetings. Following an extremely dovish outlook from the ECB, the Pound took full advantage of Euro-weakness and the exchange rate moved up rapidly, closing on Friday at 1.1617. Aside from the Bank of England’s expected decision to keep rates and asset purchases on hold; the overall picture from the week’s UK economic data was negative though. PMI services data showed a downturn in August, from 55.4 to 51.1; Industrial and Manufacturing production both dropped annually, and producer price index figures showed no change annually, but a drop monthly from 0.3% to 0.1%.

The week ahead does contain a few pieces of high-level market data from the UK. Tuesday will see the release of CPI (inflation) figures, with the market forecast for price-growth to have increased, both annually and month-on-month; which could potentially put the Bank of England in a difficult position in terms of interest rate policy. Sustained levels of inflation would put pressure on the central bank to raise rates; but with the economy still in a fragile state, and the central bank’s continued view that the current levels are temporary, it will be interesting to see how the market reacts. Wednesday will put the UK’s labour market under close scrutiny, with the release of jobless claims change for August, along with the latest claimant count rate figures, and the latest snapshot of the headline UK unemployment rate. Thursday see’s retail sales figures cross the wires, with the week closing out with Friday’s earl morning consumer confidence figures. The Pound does have the potential to continue its drive against the Euro this week; but is more likely to be stoked by increased turmoil and worsening sentiment in the Euro-zone as opposed to large amounts of positive data from the UK.

The Euro took a hammering in the currency exchange market last week, losing huge ground against both the Pound and the US Dollar. There were a number of negative data releases from Europe, namely a downward revision in Euro-zone 2nd quarter GDP from 1.7% to 1.6%, and hugely disappointing factory orders data from Germany. Figures from Germany also showed a drop in the nation’s trade surplus; indicating a slow-down in export activity; which could be attributed to an overly-strong currency, a possible damaging effect of overly-strong policy and rate-hikes from the ECB over the previous months. The biggest risk event though for the Euro was the ECB’s interest rate meeting on Thursday, at which the ECB President Jean-Claude Trichet took a hugely dovish stance; highlighting the downside risks to economic growth, with a shift in over-night index swaps indicating the market now expects the central bank to make rate-cuts by the end of the year. The currency suffered instantly, the EUR/USD exchange rate moving from the week’s open at 1.4141 down to 1.3649 y Friday’s close; following the rate meeting.

This week will see hardly any data from Europe cross the wires; but there is still potential for the data to affect the market heavily. Euro-zone industrial production figures will be released on Wednesday, with any further drop in levels set to increase the pressure on the currency. Thursday will be a major day in terms of risk; with the release of Euro-zone CPI (inflation) figures for August, and also the ECB will publish its latest monthly report. Any rise in price-growth will put pressure on the ECB; which is in no position to make further rate–hikes to control inflation. The ECB’s monthly report is likely to give more insight into policy-makers views on current economic conditions, and the outlook for next few months. The Euro is facing headwinds already this morning with news crossing the wires that Germany’s Chancellor Angela Merkel is set to pass comment on the current Greek debt situation; and the media expectation being that the nation (Germany) is growing increasingly tired of bailing-out weaker nations, and that Germany may be set to ‘wash it’s hand’ of any involvement; which would be disastrous for the Euro-zone.

The US Dollar continued to benefit heavily from turmoil in Europe last week, gaining across the board; its status as a safe-haven currency helping to push the GBP/USD exchange rate back down from the week’s open at 1.6142 to 1.5857 by Friday afternoon. Risk sentiment was the main driver for the Dollar; with minimal economic data crossing the wires from the US during the week. ISM non-manufacturing figures for August showed a slight increase in activity from 52.7 to 53.3, and US trade balance figures showing a decrease in the nation’s trade-deficit. The release of the Federal Reserve’s beige book economic survey showed little in terms of positive news, with most of the Fed’s twelve districts reporting distinctly average conditions for retail sales and housing, with some districts showing contractions in activity.

The US economic docket will see some significant data released this week. Tuesday will see the US’s monthly budget statement cross the wires, followed by the market-moving advance retail sales figures on Wednesday, along with business inventories and producer price figures. Thursday will focus on price-growth, with the release of the latest CPI (inflation) figures, as well as industrial production, and the latest Philadelphia Fed Index. The week will round off on Friday with the University of Michigan confidence survey; with the overall market view for the Dollar to maintain it’s gains amongst what will be a turbulent week for Europe.

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

Foreign Exchange Daily Market Update 09/09/11

Follow us on Twitter! - @KBRFX

The Pound made a sharp reversal in the foreign exchange market yesterday; finishing the day trading higher against the US Dollar; and having made impressive gains against the Euro. The GBP/EUR exchange rate rocketed up from the morning’s open at 1.1322 to trade at 1.1487 by the end of the day. There was also a small rise in the GBP/USD exchange rate, from 1.5921 at the mornings open to 1.6009 at the day’s close. The main economic event from the UK yesterday saw the Bank of England keep the base interest rate on hold as expected; and also made no change to the asset purchase target. The market will have to wait for the release of the meeting’s minutes to see the full extent of the reasoning behind the decision; and the all-important voting majorities from the Monetary Policy Committee.

This morning has seen the release of producer price figures from the UK; with the result being an increase in the core output level, from 3.4% to 3.6%, some positive news for the UK.

The Euro suffered in the currency exchange market yesterday; falling heavily against both the Pound and the US Dollar; after less than impressive German trade balance figures; and more worryingly, a quite dovish tone from ECB President Jean-Claude Trichet at the ECB’s latest policy meeting; with the President highlighting the downside risks to economic growth, with the market now expecting the central bank to make rate-cuts by the end of the year.

The Euro-zone’s sole important figure for today has already been released this morning, with August’s CPI (inflation) figures form Germany showing an increase in both the annual and monthly level of price-growth; from 2.3% to 2.4% and from -0.1% to 0.0% respectively. This could pose a problem for the Euro-zone as a whole; with the expectation of rate-cuts in Europe increasing, rising inflation will be a difficult situation for the central bank to control.

The US Dollar for the fourth day running gained against the Euro; the EUR/USD rate pulling back further from 1.4061 to 1.5935; the Dollar taking advantage of the worsening outlook in Europe, but the currency lost some of its previous gains against the Pound, with the GBP/USD exchange rate picking back up to above 1.60. The economic data released from the US yesterday saw the US trade balance reduce it’s negative trade deficit slightly; which is positive news for the overall economy; but it may only be a temporary drop, with the previous day’s beige book economic report suggesting that the auto-industry; which is a huge contributor to the US’s economy, has been affected by smaller supply of stock from Japan, which could have been a factor in overall falling import levels.

There are no scheduled economic events from the US today; so the currency will be open to shifts in sentiment and news from the world’s other major economies.

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

Foreign Exchange Daily Market Update 08/09/11

Follow us on Twitter! - @KBRFX

The Pound continued with another day of losses against the Euro and the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate fell from the mornings open at 1.1372 to 1.1343 by the end of the day, the Pound not helped by overall disappointing economic figures which showed that industrial production and manufacturing in the UK continued to fall annually; at an advanced pace. There was small glimmer of positive news with July’s figures for manufacturing production showing an increase in the monthly level, from -0.4% to +0.1%, but the annual level slid once again from 2.1% to 1.9%, enhancing the dire state of the UK’s industrial sector.

The main focus on the UK market will be today’s Bank of England meeting; even with the central bank expected not to make any change to either the key interest rate or the asset purchase target, last month’s meeting showed a shift in the voting towards providing further monetary stimulus, and the market will be looking for the next minutes release to see if there has been any advance on this.

The Euro again made some small gains against the Pound but fell against the US Dollar, the EUR/USD exchange rate coming down from 1.4083 at the mornings open to 1.4048 by the days close. There was some positive news though; with German industrial production figures showing a marked increase in both the monthly and annual levels; from 6.6% to 10.1 and from -1.0% to 4.0% respectively. After disappointing factory order figures the day before, it was a welcome boost for the Euro-zone, with some questions marks hanging over the current state of the strongest member state’s most important sector.

This morning has already seen the release of July’s German trade balance; which was a worse result than expected; the nations trade surplus contracting from 12.7 billion Euros to 10.4 billion; hardly surprising considering the release of last months export figures for the nation, which saw a sharp drop. There is a possibility that a strong currency is hindering Germany’s exporting capability; and it will be interesting to see if the ECB President; Jean-Claude Trichet faces any questions on the subject at today’s ECB rate meeting. Today’s ECB meeting is not expected to see any changes made to the base interest rate; or the central bank’s approach to bond-purchasing; but as always, one of the key factors will be the post-decision press conference; where the ECB President will give more insight into the central bank’s current thinking, and expectations for the coming months.

For the third day running, the US Dollar gained across the board in the currency exchange market, pushing back against the Euro and the Pound, the GBP/USD exchange rate falling from 1.6016 at the mornings open, down to 1.5941 by the end of the day. The release of the Federal Reserve’s Beige Book economic survey yesterday painted a fairly so-so picture of the overall economy. Local businesses reported little growth and some decline in sales, with manufacturers also giving a negative outlook. The service sector did see some improvements, but the housing market remained subdued; with the banking sector reporting little demand for loans, especially from consumers and commercial real estate companies. This could add more fuel to the argument that the Federal Reserve will need to undertake further monetary stimulus in the coming months (QE3), which would potentially see enhanced economic growth.

Today will see the release of July’s US trade balance figure; with the headline level expected to show a decrease in the nation’s trade deficit; from -53.1 billion dollars, to around -51.0 billion dollars. This would suggest either an increase in exports, or a drop in imports from the nation. With the Fed’s beige book survey yesterday revealing that auto retailers are struggling due to slower stock supply from Japan; this could be a contributing factor.

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

Foreign Exchange Daily Market Update 07/09/11

Follow us on Twitter! - @KBRFX

The Pound had yet another day of disappointing trading against the Euro and the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate which opened at 1.1420 fell sharply in early-morning trading, and ended the day lower at 1.1393. There was no significant data released from the UK yesterday, with movement in the market coming from other economic news from around the globe.

This morning has seen the release of July’s Industrial and Manufacturing production figures from the UK with the figures showing that industrial production fell both annually and monthly, from -0.3% to -0.7% and from 0.0% to -0.2% respectively, with manufacturing showing an unexpected pick-up from -0.4% to +0.1% monthly, but the annual level still falling from 2.1% to 1.9%.

The Euro did gain some ground against the Pound yesterday, but fell heavily against the US Dollar on the back of a downward revision in 2nd quarter GDP figures for the Euro-zone. With many market participants fearing the possibility of the Euro-zone falling back into recession; a downward amendment to the annual growth rate from 1.7% to 1.6% affected the currency heavily; with the EUR/USD exchange rate falling from 1.4110 at the market open to 1.3997 by the end of the day. There was also disappointment with the release of German factory orders which fell annually from 9.4% to 8.7% and month-on-month quite drastically from 1.8% to -2.8%.

Today will see the release of German industrial production figures, which do have the potential to move the market. Following on from yesterdays disappointing factory order numbers, it would be a blow to the Euro if industrial production were to show decline, as Germany is a nation renowned for its strong industry, and the sector is a huge contributor to overall GDP.

The US Dollar once again continued to press on in the currency exchange market, particularly against the Euro; gaining over a cent on the exchange rate throughout the day. There was also some positive data to back up the ‘flight to safety’ that is seeing funds flow into the Dollar helping it make such good gains; with August’s ISM non-manufacturing figure showing an increase, from 52.7 up to 53.3.

There will be some high-level market data released from the US today; with the release of the latest Federal Reserve Beige Book economic survey, which will give some key insight into economic conditions across the Federal Reserve’s twelve districts. The currency is likely to take direction from any change in the outlook of the report, and there may well be some comment passed form Fed officials on whether they feel that further quantitative easing is necessary to stimulate economic growth.

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

View this Foreign Exchange Daily Market Update on our website?

Foreign Exchange Daily Market Update 06/09/11

Follow us on Twitter! - @KBRFX

The Pound made a small advance against the Euro; but fell against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate opened at 1.1413 and after a very choppy day’s trading, close at 1.1418. The sole piece of economic data released from the UK yesterday showed that the PMI services index for August fell; from 51.1 to 50.4; the sharpest slowdown since 2001; but with many analysts attributing the poor performance to the after-effects of last month’s riots, it could well prove to be a temporary drop.

There are no scheduled data releases from the UK today, leaving the currency open to news and events from around the world.

The Euro fell against the Dollar and the Pound yesterday with the currency coming under pressure mainly due to increased fears over the Euro region falling back into recession. A survey of the Euro-zone economy published yesterday by the research group Markit; showed that growth in economic activity across the Euro-zone fell to its lowest rate in almost two years, and also that the combined Euro-zone services and manufacturing PMI fell to 50.7 in August, with business optimism falling significantly in Germany, France, Spain and Italy.

This morning will see the release of the final reading of 2nd quarter Euro-zone GDP, and the Euro could yet face further pressure if there is any downward revision in the numbers. German factory order figures will also cross the wires later on today. With the nation being so heavily reliant on its manufacturing industry; the currency will surely be affected by any unwanted decline in the monthly or annual levels.

The US Dollar is continuing to benefit from uncertainty and debt woes in Europe, gaining across the board despite yesterday being a non-trading day in the US. With no economic data released due to the Labor Day holiday, the currency exchange market took direction from alternate factors from around the globe, and the EUR/USD continued its pullback, moving down from the morning’s open at 1.4141 to 1.4103 by the end of the UK trading day. The Dollar also moved significantly against the Pound, with the GBP/USD exchange rate falling to a 6-week low of 1.6105.

Today will see the release of Augusts ISM non-manufacturing figures from the US; with the market forecast for a slight decrease in the index level; but it may not have too much of a negative effect on the currency, with much larger event risks and sentiment shifts from around the globe.

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

View this on our website?

Foreign Exchange Daily Market Update 05/09/11

Follow us on Twitter! - @KBRFX

The Pound finished last week higher against the Euro but lower against the US Dollar in the foreign exchange market. Despite the GBP/EUR exchange rate falling down to a low of 1.1272 on Wednesday, the market closed on Friday with the rate back up at 1.1413. There was only a minimal amount of economic data released from the UK last week, with the overall feeling being slightly negative. Mortgage approvals for July showed a good increase from 48,500 to 49,200 but GfK consumer confidence levels for August showed yet another monthly decline from -30 to -31. PMI manufacturing for August also fell, from 49.4 to 49.0; further reinforcing the current fragile state of the UK’s manufacturing sector.

The week ahead doesn’t contain much more data than the previous week; but the importance of some of the figures set to be released are a lot higher. Thursday will most likely be the focal point of the week for the UK; with the NIESR releasing their latest GDP estimate for August. With economic growth fairly weak in the UK at the moment; should there be any drop below the market forecast for a level of around 0.6%, the Pound could come under severe pressure. Thursday will also see the Bank of England meet to decide on both the base interest rate, and also the asset purchase target. With the last set of minutes released showing more votes towards increasing the asset purchase target; the market will be watching closely to see if there is any hint of a shift towards further quantitative easing; a possibility that is becoming more likely month on month. In terms of the base interest rate; it almost a foregone conclusion that there will be no change, but the market will have to wait for the release of the meeting’s minutes to gain a true gauge of how strong the majority vote is, and also the bank’s current rhetoric.

The Euro faced strong headwinds last week, and fell against both the Pound and the US Dollar. The overall feel of the economic docket from Europe was negative; and may be considered more disappointing with the fact that a lot of weak data was from arguably the Euro-zone’s strongest member state; Germany. With only a minimal improvement in the unemployment change for August, and PMI manufacturing figures from Germany falling sharply, the market saw a shift in sentiment away from the Euro, as the worries of debt-contagion are still firmly in the minds of market traders. Euro-zone consumer confidence figures improved slightly, from -16.6 to -16.5 but still remained near its lowest levels for around three years. The final reading of 2nd quarter GDP from Germany showed no change from initial indications of 2.8%, which caused little reaction in the currency exchange market.

This week will see some high-level market data released from Europe. Tuesday sees the release of the final reading of Euro-zone 2nd quarter GDP; which could make waves in the market should there be any revision to the initial reading. German factory orders will cross the wires on Tuesday, and there is a worry that the currency could fall if there is a decline in the industry that is most key in terms of economic contribution to the German nation. Thursday’s release of German trade balance figures are expected to show a smaller trade surplus, which would indicate a decrease in the amount of export activity, and will stimulate some thoughts within the market that a strong currency may be affecting the international trading ability of the Euro-zone; which could have dire consequences in the long-term. The ECB are also meeting on Thursday; with the central bank expected to make no changes to the key interest rate; and unlike their UK counterparts, there is likely to be some market movement during the post-decision press conference; where ECB President Trichet is almost certain to face questions in regards to the ECB’s current bond purchasing plans, and also his outlook for inflation and economic growth in the coming months.

The US Dollar continued to benefit from its safe-haven status last week, as a combination of worsening sentiment and poor data from the UK and Europe helped the currency to make strong gains across the board. The EUR/USD exchange rate pulled back throughout the week from 1.4529 to 1.4196, a massive gain for the Dollar; which was no doubt helped by increases in personal spending, personal income, and factory orders; which suggested that despite fairly stagnant growth; there are some positive notes within the overall economy. One disappointment though was a huge fall in US consumer confidence for August; with the level plummeting from 59.2 to 44.5. the feeling still remains though that the Federal Reserve are likely to introduce a third round of quantitative easing in the next few months; which despite almost conceding the economy does need further stimulus, should help to increase growth and confidence in the nation.

There is not a large amount of data set for release from the US this week, but with Wednesday’s release of the Federal Reserve’s Beige Book economic survey, and Thursday trade balance data; there is likely to be some sharp movement within the currency markets should there be any unwanted surprises, or further indications of economic weakness.

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