Smart Daily Blog
Author: Charles Purdy
Published Date: 03th September 2010
EURO/GBP - 1.201
US$/GBP – 1.541
CHF/GBP – 1.565
CAN$/GBP - 1.626
AUS$/GBP – 1.695
ZAR/GBP – 11.124
JPY/GBP – 129.90
HKD/GBP – 11.982
NZD/GBP – 2.154
EURO/US$ - 1.282
Sterling fell against the euro and US dollar yesterday as weaker than forecast housing and construction data added to concerns that the UK recovery may be faltering. House price data showed that house prices fell by 0.9% last month against an expectation of a 0.3% drop. Construction PMI data also came in much worse than expected. This added to the view of many analysts and investors that the recovery that the UK has seen over the first half of the year is not sustainable and the UK will follow the USA in faltering after an initial period of recovery. After a period of weak data, there are also concerns that the new austerity measures will impact on UK growth. After briefly recovering against the US dollar on Wednesday, a German bank was responsible for selling large quantities of sterling which saw sterling fall against the US dollar and drop to a 3 week low against the euro. Ensure you don’t miss out if sterling drops any further by speaking to a trader today.
In the Euro zone, European data came in very much as expected with quarterly GDP remaining unchanged at 1%, monthly PPI data for the region showing the expected 0.2% improvement and the European Central Bank keeping interest rates on hold at 1%. The Central Bank surprised a few people with their decision to keep policy unchanged, but the press conference later in the afternoon provided a little more clarity. In terms of data today, there is final services PMI data out today and monthly retail sales data which is expected to show a mild 0.3% increase on last month. Get in touch with a trader to ensure you get the best price.
In the USA, unemployment claims fell marginally from last week coming in at 472,000 – a 6,000 drop from last time. Pending home sales data also showed a surprising jump showing 5.2% more than last month against an expectation of a decline. All eyes are on today’s Non-Farm payroll data. After a shock 131,000 decline in July, the general consensus is for another 100,000 drop in the level of employment this month. The employment rate is also released at the same time. Both of these figures have a market moving effect so get in touch sooner rather than later to take advantage of the volatility before and after the release.
Elsewhere, the Brazilian economy is expected to show year on year expansion of 7.6% reflecting stronger than expected household spending and strong Chinese demand for commodities over the last year. With the Brazilian base interest rate at 10.75%, many are expecting further aggressive hikes to keep the economy in check.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote on: 0845 638 0571 (or +44 (0)207 898 0500 from outside the UK) or fill out our online quote form at: SmartCurrencyBusiness.com/quote1.htm
Author: Charles Purdy
Published Date: 02th September 2010
EURO/GBP - 1.203
US$/GBP – 1.540
CHF/GBP – 1.560
CAN$/GBP - 1.620
AUS$/GBP – 1.695
ZAR/GBP – 11.220
JPY/GBP – 129.65
HKD/GBP – 11.974
NZD/GBP – 2.155
EURO/US$ - 1.280
Sterling hit a 3 week low against the euro yesterday after UK purchasing manager data came in sharply lower than was expected. The survey asks business purchasing managers whether they have bought more or less this month, and is a key indicator of business activity. It dropped by nearly 3 points on last month to hit the lowest level since November last year. Sterling fell to 1.2007/£1 as a result and struggled against other currencies such as the Australian dollar. Against the US dollar however, sterling broke through a key technical level which saw it hit a high of $1.5444/£1 – above the key 200 day moving average level of $1.5434/£1 which is watched so closely by many traders. However, sterling has shed these gains this morning to drop to $1.5390/£1 as poor data released this morning increased demand for US dollars. The Nationwide house price index showed that house prices have dropped by 0.9% last month sparking concerns over the health of the UK recovery. There is construction sector data released later today which sees further potential for sterling to fall. Call in now for a live price.
In the Euro zone, German retail sales disappointed coming in at -0.3% against an expectation of 0.6% growth. Final European manufacturing purchasing mangers data showed a slight improvement, coming in at 55.1 against an expectation of 55.0. Eurozone PMI data has been boosted recently by a boost in Asian demand for European exports and relief following the recent EU bank ‘stress tests’. The latest figure is released today alongside revised GDP figures and the European Central Bank interest rate decision. This is expected to remain on hold, but get in touch now for a live exchange rate and to ensure any data doesn’t adversely impact your payment.
In the USA, whilst manufacturing purchasing data showed an improvement that was better than expected, the ADP non-farm payroll figures came in a lot worse than expected. There was an expectation that the figures would show that the US econo9my added 20,000 jobs last month, but the data showed a drop of 10,000 sparking fears that Friday’s ‘main’ non-farm payroll data will be worse than expected. Out today, there is further Unemployment data in the form of the US claimant count and pending home sales data released. Fed Chairman Ben Bernanke also testifies to the Senate. Call in now for an exchange rate.
Elsewhere, Australia’s trade balance surplus narrowed for the first 3 months in July. Exports slumped by 4.6% with shipments to China falling by 7.9%. Chinese demand for mined goods from Australia has kept the antipodean economy afloat. Overseas sales of coal dropped by 16%, sparking fears that the boost from China is drying up. Call in now for a live exchange rate.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote on: 0845 638 0571 (or +44 (0)207 898 0500 from outside the UK) or fill out our online quote form at: SmartCurrencyBusiness.com/quote1.htm
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