Dear Subscriber, Please find below today's news flash which gives you an insight into the current market conditions, enabling you to keep informed and up to date on the latest currency movements. The Pound struggled to move back towards the 1.55 level against the U.S Dollar on Friday and edged lower through the day, amid evidence of profit taking following the recent sharp gains over the course of the week. The UK currency did remain above 1.16 versus the Euro, as the latest UK trade data was better-than-expected with a goods deficit of £8.1 billion for June, from a revised £8.7 billion previously, as exports secured strong gains over the month. Sterling was largely unable to capitalize on the data given that substantial improvements have been priced in over the past week.
The UK currency was largely vulnerable to profit taking as the week drew to a close following substantial gains since the Bank of England inflation report. The Pound has risen to fresh 3-year highs against the Australian Dollar of late, amid speculation that the RBA would cut interest rates last week. Indeed they did to a record low but the decision was largely priced into the market and the Aussie recovered to a large extent, moving back under 1.69 by the close of trading on Friday. The latest inflation and unemployment data will be watched very closely on Tuesday and Wednesday as the balance between these indicators will have an important impact on interest rate expectations.
The Euro was again confined to narrow trading ranges during the day on Friday with resistance levels close to 1.34 and the single currency edged lower over the weekend on technical considerations. The Euro met key resistance just above 1.34, including the 200-week moving average and the single currency appears overbought on a short-term basis following the strong gains made over the past couple of weeks. There was also a weaker-than-expected reading for French industrial production, which had a relatively small negative impact.
There was also further speculation that the U.S Federal Reserve would move to a September tapering of bond purchases and there was some reluctance to sell the Dollar aggressively, as the odds of a September tapering increase. Markets will continue to look for indications this week of underlying strength in the U.S economy and both the July retail sales and industrial production data will be watched closely. In the Euro-zone, the focus will be on the flash estimate of GDP in the second quarter. The region has been in recession for six consecutive quarters but recent data has provided a degree of optimism and there is suggestions that the economy could pull out of recession with growth of 0.2%. Data Released
U.S 19:00 Federal Budget (July) 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. Market Analysis by Adam Solomon | 
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