Fri, October 14, 2011
The Pound finished yesterday higher against the Euro but lower against the US Dollar in the foreign exchange market. The GBP/EUR exchange rate moved up across the course of the day, from the morning’s open at 1.1399 to trade up at 1.1455 by the market close. The GBP/USD exchange rate however, came lower throughout the day, down from 1.5792 at the morning’s open to trade at 1.5732 by the close of the UK business day. The major figure released from the UK yesterday showed that the UK’s trade deficit narrowed slightly in August, from -£8,156 million to -£7,768 million.
There are no scheduled economic data releases for the UK today; leaving the Pound open to shifts in risk sentiment, and news from the world’s other major economies.
The Euro weakened off against both the Pound and the US Dollar yesterday in the currency exchange market. The Euro was not helped by the release of the ECB’s monthly report for October; which was in no way positive for the Euro-zone. The report stated that growth in the Euro region would remain ‘moderate’ for the rest of the year, that there are ‘increasing downside risks’ to economic growth and also that inflation will remain ‘clearly above 2.0%’ for the time being.
This morning will see the release of Euro-zone CPI (inflation) inflation figures for September, which are expected to show an increase in price-growth, which is damaging for the European economy. The ECB are in no position to raise interest rates to combat burgeoning inflation, so this could well se the currency come under pressure.
The US Dollar did gain against both the Pound and the Euro yesterday. The EUR/USD exchange rate pulled back from 1.3808 at the morning’s open, to trade down at 1.3733 by the end of the day. Figures released yesterday showed that the US’s trade balance for August was unchanged from the previous month, the negative trade deficit remaining at -$45.6billion.
Today could see the US Dollar face some sharp market movements. This afternoon’s release of advance retail sales numbers for September are expected to show a positive upturn, along with the University of Michigan confidence index reading for October; which could see the US Dollar gain further strength.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
| Day | Time | Currency | Event |
|---|---|---|---|
| FRI | 09:00 | EUR | EUR Italian Trade Balance (Total) (euros) | FRI | 09:00 | EUR | EUR Italian Trade Balance EU Countries (euros) | FRI | 10:00 | EUR | EUR Euro-Zone Consumer Price Index (MoM) | FRI | 10:00 | EUR | EUR Euro-Zone Trade Balance s.a. (euros) | FRI | 10:00 | EUR | EUR Italian Consumer Price Index (NIC incl. tobacco) (MoM) | FRI | 10:00 | EUR | EUR Italian Consumer Price Index (NIC incl. tobacco) (YoY) | FRI | 10:00 | EUR | EUR Italian Consumer Price Index - EU Harmonized (MoM) | FRI | 10:00 | EUR | EUR Euro-Zone Consumer Price Index - Core (YoY) | FRI | 10:00 | EUR | EUR Euro-Zone Consumer Price Index (YoY) | FRI | 10:00 | EUR | EUR Euro-Zone Trade Balance (euros) | FRI | 10:00 | EUR | EUR Italian Consumer Price Index - EU Harmonized (YoY) | FRI | 13:30 | USD | USD Import Price Index (MoM) | FRI | 13:30 | USD | USD Import Price Index (YoY) | FRI | 13:30 | USD | USD Advance Retail Sales | FRI | 13:30 | USD | USD Retail Sales Less Autos | FRI | 13:30 | USD | USD Retail Sales Ex Auto & Gas | FRI | 14:55 | USD | USD U. of Michigan Confidence | FRI | 15:00 | USD | USD Business Inventories |
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*These are indicative rates only, based on interbank prices at the time of writing. For exact rates please contact our dealing team
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