Daily Foreign Exchange Market Update
Wed, November 30, 2011
The Pound closed out yesterday higher against both the Euro and the US Dollar in the foreign exchange market. The GBP/EUR exchange rate moved up from the morning’s open at 1.1667 to trade up at 1.1706 by the close of the UK trading day, with the GBP/USD exchange rate also advancing from 1.5542 at the morning’s open to trade up at 1.5625 at the day’s close. Yesterday saw the release of Nationwide house price numbers which showed an annual growth from 0.8% to 1.6%, but no change in the monthly level at 0.4%, and also Net consumer credit figures, which showed a sharp drop from £0.6 billion to £0.0 billion, way below market forecasts, which is not positive for the UK.
This morning has already seen the release of November’s GfK consumer confidence figure, which showed a surprise positive increase, from -32 to -31 for the month, so despite the worries around Europe, it is a sign that positive sentiment is showing a slight increase at street level, which could in turn benefit consumer spending and retail sales.
The Euro lost ground against the Pound, but showed a marginal increase against the US Dollar in the currency exchange market. The EUR/USD exchange rate moved up marginally from 1.3321 at the morning’s open to trade at 1.3346 by the close of the European market session. The currency wasn’t helped by the release of Euro-zone business climate indicator numbers which showed a drop from -0.19 to -0.44, and stagnant consumer confidence figures for November, which showed no change at a level of 20.4.
Today we have already seen German unemployment figures cross the wires. The unemployment change showed a reduction of 20,000 unemployed as opposed to market forecasts for a drop of only 5,000. These figures had a positive effect, bringing the overall unemployment rate down from 7.0% to 6.9%.
The US Dollar lost ground against the Euro and the Pound yesterday, despite a huge increase in US consumer confidence figures for November. The index showed a sharp jump from a reading of 40.9 to 56.0 month-on-month, which is surprising considering the central bank are worried about the possible ill-effects of the current turbulence in Europe.
The US economic docket today will focus on the labour market, with the release of the latest ADP employment change figures; with the market expectation to see an increase in jobs added. These may well be passed over by the market though, as traders will look to Friday’s non-farm payroll, and unemployment rate numbers.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
WED || 08:55 || EUR || EUR German Unemployment Change||
WED || 08:55 || EUR || EUR German Unemployment Rate s.a.||
WED || 09:00 || EUR || EUR Italian Unemployment Rate s.a.||
WED || 09:30 || GBP || GBP Bank of England Housing Equity Withdrawal (Pounds)||
WED || 10:00 || EUR || EUR Euro-Zone Consumer Price Index Estimate (YoY)||
WED || 10:00 || EUR || EUR Euro-Zone Unemployment Rate||
WED || 10:00 || EUR || EUR Italian Consumer Price Index (NIC incl. tobacco) (MoM)||
WED || 10:00 || EUR || EUR Italian Consumer Price Index (NIC incl. tobacco) (YoY)||
WED || 10:00 || EUR || EUR Italian Consumer Price Index - EU Harmonized (MoM)||
WED || 10:00 || EUR || EUR Italian Consumer Price Index - EU Harmonized (YoY)||
WED || 10:30 || CHF || CHF KOF Swiss Leading Indicator||
WED || 11:00 || EUR || EUR Italian Producer Price Index (MoM)||
WED || 11:00 || EUR || EUR Italian Producer Price Index (YoY)||
WED || 12:00 || USD || USD MBA Mortgage Applications||
WED || 12:30 || USD || USD Challenger Job Cuts (YoY)||
WED || 13:15 || USD || USD ADP Employment Change||
WED || 13:30 || USD || USD Non-Farm Productivity||
WED || 13:30 || USD || USD Unit Labor Costs||
WED || 14:45 || USD || USD Chicago Purchasing Manager||
WED || 15:00 || USD || USD Pending Home Sales (MoM)||
WED || 15:00 || USD || USD Pending Home Sales (YoY)||
WED || 15:00 || USD || USD NAPM-Milwaukee||
WED || 15:30 || USD || USD DOE U.S. Crude Oil Inventories||
WED || 15:30 || USD || USD DOE Cushing OK Crude Inventory||
WED || 15:30 || USD || USD DOE U.S. Distillate Inventory||
WED || 15:30 || USD || USD DOE U.S. Gasoline Inventories||
WED || 19:00 || USD || USD Fed Releases Beige Book Economic Survey