Dear Subscriber, Please find below today's update which gives you an insight into the current market conditions, enabling you to keep informed and up to date on the latest currency movements. GBPEUR/GBPUSD Following on from last week, the Pound surged above 1.62 against the U.S Dollar, breaking through significant resistance in the region of 1.6170, as a report showed that consumer confidence rose to the highest level since June. The UK currency also proceeded towards the highest level in 20 months versus the Euro, as the report will reduce speculation that the Bank of England will implement further quantitative easing in light of the technical recession in the UK. The preliminary GDP figures on Wednesday make grim reading for the government, but there are suggestions that -0.2% result will be revised higher over the coming weeks. The Pound rose against most of the majors following an initial decline and made further gains against the majors through to the end of the week. The latest BBA mortgage approvals data recorded a decline to a 10 month low, which helped reinforce concerns surrounding the housing sector. The latest report from the Confederation of British Industry showed that a survey of retail sales weakened to -6 in April, from zero the previous month. However, companies were more optimistic about the May outlook, which provided a degree of relief. Bank of England policy maker Martin Weale stated that the case for quantitative easing had been increased following the GDP data and negative media headlines about the contraction in growth had increased. There was still evidence of defensive inflows into the Pound, as the uncertainties surrounding the Euro-zone economic outlook persisted. On a trade-weighted basis, the UK currency hit a fresh 30-month high versus the Euro, as the market advances close to 1.23. The Pound also advanced towards 1.56 against the Australian Dollar and traded close to the $2.00 mark versus the New Zealand Dollar. The decline in risk appetite following the surprise contraction in UK economic growth, combined with the structural vulnerabilities in the Euro-zone had reduced traders' appetite for higher-yielding currencies. The ratings agency Standard & Poor's downgraded Spain's credit rating and highlighted concern that Europe's debt crisis is worsening. The Aussie Dollar is heading towards its biggest monthly loss in many months versus a basket of currencies, amid speculation that the Reserve Bank of Australia is preparing to cut interest rates next week. In the UK this week, all three PMI surveys for April are expected to decline from the previous month's surprisingly elevated levels, but remain strong nonetheless. Elsewhere, the economic calendar is dominated by housing numbers, with pricing numbers from Halifax, Hometrack, Nationwide and the Land Registry. EUR/USD The Euro declined last week and extended a monthly loss against the Dollar and the Yen, after a downgrade in Spain's credit rating increased concerns that the systemic debt crisis engulfing much of Europe is spreading at a faster rate. The credit rating in Spain has been cut two levels to BBB+ and S&P said the outlook is negative, as the country struggles with a recession. The single currency drifted weaker through the course of the day on Friday, as reports in Italy showed a bigger decline in business confidence, which sank to the lowest level in over two years. Business confidence in the Euro-zone as a whole also fell sharply in the April reading. There was some positive news, however, with reports that the Dutch government had agreed a 2013 budget. In the U.S, the latest unemployment data showed that claims for jobless benefits was again weaker-than-expected at 388,000 in the latest week, maintaining the significant deterioration in April. In contrast, the pending home sales data was stronger-than-expected with a 4.1% March increase following a 0.4% gain the previous month. The advanced estimate of U.S gross domestic product was significantly weaker-than-expected with a figure of 2.2%, from 2.6% expected and there was particular disappointment given that the market rumours were for a stronger reading. The Euro pushed to three-week highs at 1.3260 with further reports of institutional Euro selling above the 1.3250 level.
If you need any further assistance, or require a live dealing quote - please do not hesitate to contact me on 01736 335250 or send an email to info@torfx.com Regards,
TorFX Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions. Unauthorised copying or re-wording of this content is prohibited. The copyright of this content is owned by Tor Currency Exchange Ltd. Any unauthorised copying or re-wording will constitute an infringement of copyright. | 
