Daily Foreign Exchange Market Update

Fri, January 27, 2012

The Pound finished lower against the Euro and gained against the US Dollar in the foreign exchange market yesterday. The GBP/EUR exchange rate picked up from 1.1971 at the morning’s open to trade down at 1.1939 by the close of the UK business day, with the GBP/USD exchange rate also advancing from 1.5685 at the day’s open to trade up at 1.5705 at the European market close. Economic data from the UK was very light yesterday, with CBI reported sales came in worse than expected at -22 compared to -6 predicted by economists.

The Euro also gained against the US dollar and the Pound in the currency exchange market yesterday. The EUR/USD exchange rate gained from the mornings open at 1.3099 to trade at a week high of 1.3184 during the day, but finished the session back to 1.3151 by the European market close. Economic data released from Europe was positive overall, with German consumer confidence survey came in better than expected at 5.9 up from 5.7 for the month of February. French consumer confidence indicator also came in slightly better at 81 up from the expected 80 by economists.

This morning we have seen German import price index figures come inline with expectations at 0.3% down from 04% down from the previous month and down from 6.0% to 3.9% across the year. Later today we will see the Italian bond auction due at 10:00GMT.

The US Dollar continued to lose ground against the Pound yesterday, and against the Euro yesterday. Economic data from the US was fairly mixed with US durable goods orders for the month of December come in better expected at 3.0% vs. 2.0% predicted by economists but has fallen from 4.3% overall. Initial and continuing jobless claims came in negative yesterday, initial jobless claims increased from 356k to 377k and continuing claims increased from 3466K to 3554K for the week. Also new home sales missed expectations with the reading for December month coming in at 307k vs. 321k and down from 314k from the previous month.

Today from the US we will look out for the annualised US gross domestic product due at 13:30GMT, which is expected to increase from 1.8% to 3.0% by economists. Also we will keep an eye on the university of Michigan confidence due at 14:55GMT today, which is expected to come in at 74.0 inline with the previous months figure.

This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.

Data Releases