Current Exchange Rates

Currency	Current Rate
GBPUSD	1.4994
GBPEUR	1.0998
EURUSD	1.3632
GBPJPY	133.07
GBPCHF	1.6111
GBPAUD	1.6612
GBPCAD	1.5534
GBPNZD	2.1625
GBPSGD	2.1034
GBPHKD	11.653
GBPCZK	28.352
GBPPLN	4.3145
GBPSEK	10.7797
GBPDKK	8.1912
GBPNOK	8.9022
GBPTHB	49.0299
GBPZAR	11.3809

*These are indicative rates only, based on interbank prices at the time of writing. For exact rates please call our dealing team on +44 (0)1375 489 480

Market Overview

Yesterday Sterling remained weak against the US dollar and the Euro. Cable (sterling/dollar) was held firmly below 1.50 and at the lowest point of the day fell to 1.4850. Against the Euro, Sterling faired no better with low of 1.0980 and at not point during the day did it go above 1.1085. This is a drop of 0.037 from same time last month which saw a high of 1.1450 against the Euro.

Oddly Sterling's continued weakness was not attributed to any great leaps in economic data from either the US or Europe. In fact the majority of data that was released fell short of expectations. Italian CPI for example showed no increase in its pace of growth remaining at 1% when analysts had expected a 2% growth and CPI for the whole Euro-zone remained within expectations at 0.9% but this pace of growth was down from the preceding report's 1.0% growth. The US also saw short comings in their economic reports as total vehicle sales moved down from 10.82 million to 10.36 million missing expectations of a drop to 10.40 million sales. The only "positive" data to come out from the US was the weekly confidence report from ABC which saw confidence move up from -50 to -49.

Wednesday’s calendar starts off early doors with Australia’s AiG performance of service index. The survey tracks monthly developments in the services sector showing an overall positive or negative development index. The index has moved up/down from January’s reading of 47.4 to 48.3 in February. More importantly Australia’s GDP has, for the fourth quarter, expanded by 0.9% compared to the 0.3% growth that was seen in the previous quarter, and remaining within analyst expectations. The annualised GDP data has seen 2.7% growth after seeing 0.9% growth in the preceding report. The figure exceeded the consensus of a 2.4% expansion. These figures continue to confirm Australia’s strong position in the world economy.

The UK calendar has seen the Nationwide consumer confidence survey report that sentiment among consumers has risen to 80 after the index read at a revised 74 points in January. The consensus had been for sentiment to hold at 73, January’s originally reported figure. February's shop price index saw a 1.7% increase after January had seen the index grow by 2.3%. The final piece of data out from the UK, which will be announced at 9:30 GMT, is February's Purchasing Manager Index (PMI) for services. The consensus is for service PMI to move up by half a point from 54.5 to give a reading of 55.0.

The European calendar starts off with German retail sales which were expected to fall by 0.6% in January after December had seen 0.8% increase. As of yet the figure has not been announced. The annualized data should have seen sales decline by 1.1% following a drop in sales of 2.5% in the previous report. France has seen their PMI fall slight to 54.6 in February when the consensus had been for it to remain at 54.7. Italy's PMI for services saw the index fall from January's index of 50.9 to 50.8, when the consensus had been for PMI to 50.7.  

Following on from Italy's data, the Euro-zone has seen it's PMI for services fall to 51.8 in February from January's index of 52, where economists had expected it to remain. The composite PMI remained flat at 53.7 just as had been forecast by economic experts. Europe's data continues will retail sales data for the whole Euro-zone. Month-on-month sales are expected to fall by 0.3% after seeing no change in sales for the Christmas period. Annually this data is expected to hold at a decline of 1.6%.

This afternoon will see the US announce their economic data for the day. Weekly mortgage applications showed a decline by 8.5% last week and a continued decline would not help the Dollar. Economists so far have not given any expectations as to its outcome. Similarly no forecasts have been made for the Challenger job cuts report, but the previous report had shown a decline of 70.4% and should this trend continue then this will count against the Dollar. Lastly the US is predicted to see its ISM non-manufacturing composite improve from a reading of 50.5 in January to 51 for February. Although today’s US calendar is not considered to be greatly influential on the market, in these volatile times, a negative outlook across the board could push the Dollar lower.

Data Releases

DAY	TIME	CURRENCY	EVENT
WED	09:00	EUR	Euro-Zone Purchasing Manager Index Services (FEB F)
WED	09:00	EUR	Euro-Zone Purchasing Manager Index Composite (FEB F)
WED	09:30	GBP	Purchasing Manager Index Services (FEB)
WED	09:30	GBP	Official Reserves (Changes) (FEB)
WED	10:00	EUR	Euro-Zone Retail Sales (MoM) (JAN)
WED	10:00	EUR	Euro-Zone Retail Sales (YoY) (JAN)
WED	12:00	USD	MBA Mortgage Applications (FEB 26)
WED	12:30	USD	Challenger Job Cuts (YoY) (FEB)
WED	13:15	USD	ADP Employment Change (FEB)
WED	14:15	USD	Fed's Rosengren Speaks at Conference in Philadelphia
WED	15:00	USD	ISM Non-Manufacturing Composite (FEB)
WED	15:30	USD	DOE U.S. Crude Oil Inventories (FEB 26)
WED	15:30	USD	DOE U.S. Gasoline Inventories (FEB 26)
WED	15:30	USD	DOE U.S. Distillate Inventory (FEB 26)
WED	18:00	USD	Fed's Lockhart Speaks to N.Y. Assn. of Business Economics
WED	19:00	USD	Fed Releases Beige Book Economic Report

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