Current Exchange Rates

 

 

*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

 

This Tuesday morning has seen Australian business confidence rise in January to an index of 15, after December saw an index score of 8, according to a survey from the National Australian Bank. Business conditions have deteriorated with the index showing a score of 3 against December's score of 10. The NAB’s Business confidence survey is considered more influential than the business conditions survey so with confidence seeing an increase, this data is bullish for the Aussie Dollar.

 

Early morning European car registrations have grown by 12.9% in the month of January, a slower pace of growth than what was seen in December which saw new car registrations grow by 16.4%. Increases in new car registrations are bullish for the Euro, although a continued slow down will have a negative affect on its value.

 

The highlight of the UK economic calendar is the Consumer Price Index. The annualized data is expected to see inflation grow by 3.5% after the 2.9% growth that we saw in December. After seeing inflation grow by 0.6% in December, the month-on-month inflation is expected to remain flat in January. Finally core CPI is expected to grow by 3.3% year-on-year after previously seeing inflation rise by 2.8%. Inflation is curbed by the BoE raising interest rates which make Sterling more attractive for foreign investors which in turn adds value to the Pound.

 

Further news from the UK will reveal that retail prices for January are to remain unchanged month-on-month after December saw prices increase by 0.6%. The annualized data is expected to see retail prices grow by 3.8%, a higher rate of growth than the 2.4% increase that was seen in December. The last piece of UK data for the day will be UK house prices which are expected to rise annually by 1.2% after it had grown by 0.6% in the previous month. 

 

The European calendar continues with a survey on Germany's economic sentiment by ZEW. In February sentiment is expected to drop to a lower score of 41 after January's sentiment had been higher with a score of 47.2. Expectations for Germany's current economic situation, is for the index to improve with a score of -53 over the -56.6 that was seen in January.

 

The US calendar will open with Empire manufacturing data, and would see February's manufacturing improve with an index of 17.35. January saw a score of 15.92 on the outlook for US manufacturing. Long-term TICs are expected to lower from $126.8 Billion in December to $50 Billion indicating that less capital is flowing into America than was previously. Lower TICs are indicative of less demand for American securities which puts downward pressure on the value of the Dollar.

 

Later in the afternoon the NAHB Housing market index is expected to increase in the month of February to an index of 16 over January’s index of 15. Lastly the weekly ABC consumer confidence survey is due for release at 22:00 GMT. While economists have not given any expectations for the headline figure, should we see an improvement on the previous score of -48 then expect some weight to be added to the value of the US Dollar albeit not a great deal of weight.

 

 

 

Data Releases

 

 

 

 

 

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