Overall, Sterling has performed well, having briefly broken out of its 1.56~1.60 trading range against the dollar this morning despite the release of poor UK confidence data overnight, while consolidating against the euro.
Ahead of the Euro group meeting later today the EUR/USD will be vulnerable particularly after German Retail Sales came in on the weaker [...]
In the UK the end of the first homebuyer stamp duty exemption in March has not encouraged house purchasers in January and February. That should have boosted mortgage approvals that month, but the extremely cold weather in February may have tempered activity. The Housing figures out this morning show dip in house prices versus this [...]
The most market-moving release this morning was the final estimate of UK Q4 GDP. At -0.3% the revision is lower than expectations which will has already proved to be negative for GBP, falling significantly versus EUR and USD this morning.
The market is looking for US durable goods orders to rise by 3.0% in February, buoyed [...]
The DXY index was pushed lower overnight following a speech from Bernanke. However he continued to steady the ship, (markets remained buoyed) despite not being overly impressed by the recent employment data there was no hint from the Fed chairman on QE3, although it has been suggested it could be a topic of discussion in [...]
Weekend press reports reopened concerns on sovereign debt issues. Italian PM Monti was reportedly worried about Spanish budget controls. Meanwhile, Germany’s opposition party, the Social Democrats, criticised Chancellor Merkel’s attempts to increase the eurozone firewall. This will be the key subject of discussion between Finance Ministers and Central Bank governors on Friday when they meet [...]
UK retailers experienced the largest fall in sales in 9 months during February, adding to fears that the UK consumer is not going to drive economic growth in the short term. Retail sales volumes fell by 0.8% last month with January’s data revised down from +0.9% to +0.3%. This release is bad news for the [...]
The Chancellor’s annual UK budget statement was characterised as one that stuck to the rules, with the overall package of announced tax changes being fiscally neutral over the next five years. The budget was set against a backdrop of a modest improvement to the medium term outlook for growth and employment. This year’s forecast for [...]
The annual rate of Consumer Price Inflation in the UK fell to 3.4% in February down from 3.6% in the previous month. Although this marks the lowest level of inflation since November 2010, it was still higher than the market had been expecting (consensus 3.3%). The markets will be interested in the BoE minutes release [...]
The UK’s adherence to a strict austerity programme has helped sterling to appreciate 3% against the US dollar since the beginning of the year. GBP/USD hit a high for 2012 of $1.5990 a couple of weeks ago. Since then, it has been the surprisingly upbeat US economic news that has led to a softening in [...]
The euro kept its gains against the dollar with the cross dipping through $1.3150 just after the London open. Euro-dollar had touched $1.30 on Thursday so the single currency has managed to recover forcefully. However, it remains vulnerable to reverses in sentiment and the IMF warning over execution risk in Greece over the weekend is [...]