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. Headlines • UK CBI Retail Sales boost Pound – strong Q3 GDP likely.
• German Consumer Confidence hits 6-yr high – EUR gains wiped out by Retail Sales.
• GBP/USD up 0.75 cents – US Durable Goods endure July downgrade.
• GBP hits 3.5-yr high vs. CAD – Canadian crude oil prices fall.
Sterling Sterling performed admirably on the currency market yesterday as another potent UK data release stoked speculation that third quarter GDP could print as high as 1.0%. The Confederation of British Industry (CBI) reported that their index of Retail Sales improved from 27.0 in August to a fresh 15-month high of 34.0 in September. Private consumption accounts for around 60% of the British economy and subsequently Sterling was given a sizeable boost by the best CBI score since June last year. The outperforming figure was largely influenced by a comprehensive rise in furniture and carpet sales: every single furniture and carpet store reported higher sales this month.
Euro The Euro drew first blood against the Pound yesterday, rallying 0.3 cents in the morning as the GfK German Consumer Confidence index struck its highest score for six years. The slight rise to 7.1 indicates that German consumers are eager to go out and spend to celebrate their country's improving economic situation. Economic expectations are up over 27 points from this time last year and this is likely to result in enhanced spending in the run-up to Christmas. However, Sterling fought back by midday in response to the powerful CBI Retail Sales figure and GBP/EUR posted a slender 10 pip daily gain.
US Dollar The Pound to US Dollar exchange rate rallied by just over 0.75 cents yesterday as Sterling sentiment was boosted by the stronger-than-expected UK private consumption figures for September. US Durable Goods Orders rebounded in August to 0.1%, beating forecasts for a -0.2% drop, however, support for the 'Greenback' remained muted as July's steep decline was downgraded from -7.3% to -8.1%. The US Dollar was also impacted by fears that another political showdown between Democrats and Republicans will destabilise debt ceiling negotiations.
Canadian Dollar The 'Loonie' succumbed to another 3.5-year low against Sterling yesterday as the deficit between Canadian and US crude oil prices widened to a 6-month high of $30 per barrel. Sterling's one-cent gain means that one Pound will buy you more Canadian Dollars now than at any point since January 31st 2010.
Australian Dollar GBP/AUD advanced by around 1.1 cents yesterday as Sterling powered its way back into life on the currency markets thanks to the latest dose of robust UK data. With British consumers spending the most this September since June last year, investors opted to raise their interest rate hike bets, despite the Bank of England's protestations, which bolstered demand for the Pound. The BoE is keen to keep a lid on interest rate speculation in order to convince businesses that cheap credit is here to stay for another few years at least. However, hike speculation heightens with each piece of positive UK data.
New Zealand Dollar The Pound grew by just under a cent against the New Zealand Dollar yesterday as a dearth of domestic data down under led traders to focus their attentions on the highly encouraging UK CBI Retail Sales ecostat. 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. | 
No comments:
Post a Comment