Current Exchange Rates
|
Currency |
Current Rate |
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|
GBPUSD |
1.5681 |
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|
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||
|
GBPEUR |
1.1452 |
|
|
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||
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EURUSD |
1.3688 |
|
|
|
||
|
GBPJPY |
140.48 |
|
|
|
||
|
GBPCHF |
1.6813 |
|
|
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||
|
GBPAUD |
1.8129 |
|
|
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||
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GBPCAD |
1.6832 |
|
|
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||
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GBPNZD |
2.2791 |
|
|
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||
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GBPSGD |
2.2282 |
|
|
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||
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GBPHKD |
12.184 |
|
|
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||
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GBPCZK |
30.019 |
|
|
|
||
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GBPPLN |
4.6842 |
|
|
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||
|
GBPSEK |
11.676 |
|
|
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||
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GBPDKK |
8.526 |
|
|
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GBPNOK |
9.3864 |
|
|
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GBPTHB |
52.04 |
|
|
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||
|
GBPZAR |
12.064 |
|
|
|
*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
At midday yesterday, The Bank of England announced their interest rate decision, and as expected rates were held at 0.5% in order to keep inflation on track for the 2% target. The asset purchasing programme was put on hold at buying £200billion of bonds.
Following the BoE, the ECB announced their interest rate decision, and just like the UK central bank, interest rates were held at 1.0% a record low for the history of the ECB.
Yesterday afternoon saw the US Dollar gain strength as US factory orders grew much greater than had been expected. Factory orders increased by 1.0% in the month of December from November’s downwardly revised growth of 1.0%. Economist had expected only a 0.5% growth.
The first lot of data from the euro-zone has been the French Trade balance for December. The data showed that the deficit had narrowed to €4.26billion. Expectations had been for a reduced deficit of €4.0Billion. Although the deficit has narrowed, which is good for the French economy, the fact that it has missed analyst expectations could have a slight knock-on affect for the Euro.
Alongside the Trade balance, the Central Government Balance for December was also released. The data showed that the balance deficit also narrowed to 138.0billion compared to the previous figure of 143.3billion. No predictions had been made for the release of this data.
The UK’s data will comprise entirely of Producer Price Index for Input and Output for the month of January. Input prices are expected to increase by 0.8%, month-on-month compared to December’s increase 0.1%. The year-on-year figure is expected to see prices rise at a slower pace from the previous month’s increase of 6.9% to 6.5%. Year-on-year the Output prices are expected to increase from 3.5% in December to 3.7% in January. Core output data is expected to maintain the same pace of growth in January as it did in December at a pace of 2.6%.
Coming back to European data, Italian CPI figures are due for release at 10am GMT. Month-on-month CPI is expected to maintain a pace of growth of 0.2% from December to January. Year-on-year to index is expected to increase by 1.3% compared to 1.0% growth seen previously.
Following on from Italian CPI, Germany will be announcing their Industrial production figures for December. Expectations are for production to slow the pace of its growth from 0.7% in November to 0.6% for December. The Year-on-year report is expected to see the pace of decline drop from 8.0% to 3.7%. Should the data come out better than had been expected then the euro should appreciate in vale against the other majors.
The US Calendar for the afternoon will feature the all important Non-farm payrolls data for January. Expectations are for the figure to rise by 15,000 in January after seeing a decline of 85,000 in December. An increase in Non-farm payroll would see strength added to the value of the dollar.
Accompanying Non-farm payrolls, as always, is the Unemployment rate. It is expected that the unemployment rate will remain at 10% for January as it was in December. Should the percentage of unemployed come out lower than expected then this will be Bullish for the Dollar although this figure doesn’t usually move the market as much as Non-farm payrolls.
Data Releases
|
DAY |
TIME |
CURRENCY |
EVENT |
|
|
|
||||
|
FRI |
09:30 |
GBP |
Producer Price Index Input n.s.a. (MoM) (JAN) |
|
|
FRI |
09:30 |
GBP |
Producer Price Index Input n.s.a. (YoY) (JAN) |
|
|
FRI |
09:30 |
GBP |
Producer Price Index Output n.s.a. (MoM) (JAN) |
|
|
FRI |
09:30 |
GBP |
Producer Price Index Output n.s.a. (YoY) (JAN) |
|
|
FRI |
09:30 |
GBP |
Producer Price Index Output Core n.s.a. (MoM) (JAN) |
|
|
FRI |
09:30 |
GBP |
Producer Price Index Output Core n.s.a. (YoY) (JAN) |
|
|
FRI |
10:00 |
EUR |
Italian Consumer Price Index (NIC incl. tobacco) (MoM) (JAN P) |
|
|
FRI |
10:00 |
EUR |
Italian Consumer Price Index (NIC incl. tobacco) (YoY) (JAN P) |
|
|
FRI |
10:00 |
EUR |
Italian Consumer Price Index - EU Harmonized (MoM) (JAN P) |
|
|
FRI |
10:00 |
EUR |
Italian Consumer Price Index - EU Harmonized (YoY) (JAN P) |
|
|
FRI |
11:00 |
EUR |
German Industrial Production s.a. (MoM) (DEC) |
|
|
FRI |
11:00 |
EUR |
German Industrial Production n.s.a. and w.d.a. (YoY) (DEC) |
|
|
FRI |
13:30 |
USD |
Change in Non-Farm Payrolls (JAN) |
|
|
FRI |
13:30 |
USD |
Unemployment Rate (JAN) |
|
|
FRI |
13:30 |
USD |
Change in Manufacturing Payrolls (JAN) |
|
|
FRI |
13:30 |
USD |
Average Hourly Earnings (MoM) (JAN) |
|
|
FRI |
13:30 |
USD |
Average Hourly Earnings (YoY) (JAN) |
|
|
FRI |
13:30 |
USD |
Average Weekly Hours (JAN) |
|
|
FRI |
17:00 |
USD |
Treasury's Geithner Attends G-7 Meeting in Iqaluit, Canada |
|
|
FRI |
20:00 |
USD |
Consumer Credit (DEC) |
|
|
FRI |
22:15 |
USD |
Fed's Bullard to Speak at Washington University in St. Louis |
|
Should you have any questions, please do not hesitate to contact us directly via:
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Personal: 0800 8778 477
Partners: 0800 9555 002
E-mail: info@kbrfx.com
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KBR Foreign Exchange PLC
Riverside Business Centre
Fort Road
Tilbury
RM18 7ND