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.
In the foreign exchange market yesterday we saw the Pound strengthen against the Euro but weaken versus the US Dollar. The GBPEUR rate opened the day at 1.2348, a daily high, before peaking early afternoon to 1.2406 and closing the day out at 1.2385. The GBPUSD rate opened the day at 1.6043 and gained strength across the morning, peaking to 1.6057 just after lunch and closing out at a daily low of 1.6026. The only data from the UK yesterday was the revised GDP figure which stayed at 1.0%, as expected. Today there will be no data released from the UK.
The Euro weakened against the Pound and the US Dollar in yesterday’s market session. The EURUSD rate opened at a daily high of 1.2992 and lost ground across the first half of the day before it hit a daily low of 1.2916, closing the day out at 1.2939. There was no data released from the Euro-zone yesterday but today German CPI data will be released and is set to fall slightly from 2.0% to 1.9% showing a lower rate of inflation in the German economy.
The US Dollar saw losses against the Pound but strengthened against the Euro in the foreign exchange market yesterday. Durable goods orders were released yesterday and remained unchanged; they were expected to fall by 0.6% showing that there is still quite a relatively high level of confidence in the US economy. This was backed up by the fact consumer confidence came out a little higher than expected, at 73.7 compared to 73.1. Today will see new homes sales be released which are expected to fall from 389K to 387K.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
