MARKET REPORT THURSDAY 6th MARCH
Good Morning,
This morning markets have started with news EURUSD has reached an all time high of 1.5345. Poor US Service Sector and US employment figures released yesterday gave further evidence the
US
economy is struggling, a sentiment exacerbated by overall bearish comments from US Treasury Secretary Paulson. Analysts will be looking for further insight into the state of the
US
housing sector today, when data on US Pending Home Sales is released. The market is looking for a modest recovery following last months decline of 1.5%, expectations are for new home sales to fall 1% improving on last months poor reading.
In the
UK
all eyes will be on the Bank of England’s Interest Rate decision announcement at 12.00. The market consensus forecasts that the Bank of England will hold rates at 5.25% after
UK
services sector activity rose more than expected for February, allaying concerns following weaker reports from the Nationwide Building Society earlier in the week. The Dollar against
Sterling
has weakened on the market opening to the 1.9980 level and the Euro has opened strongly against
Sterling
trading as high as 1.3000.
In
Europe
the ECB’s Interest Rate announcement will be made at 12.45 (GMT) with expectations of a vote to hold rates at 4%. Focus will be on the ECB press conference at 13.30(GMT). Dovish sentiment from President Trichet’s could see the Euro weaken following its recent strong performance against other major currencies.
Elsewhere news from the Commodities markets saw rises in the price of both Oil and Gold. Yesterdays meeting of Opec in
Vienna
, saw members reject fresh appeals for increases in Oil supply, edging Oil prices up. Gold prices also jumped 3% in
London
to a new record of $991.80 following concerns about the weakening Dollar.
Archive News
This commentary is generic and may not suit all circumstances. Before taking any action, we recommend either contacting your trader for guidance or obtaining independent financial advice. The information in this document was obtained from sources believed to be reliable but its accuracy and completeness cannot be guaranteed. The views and recommendations in this communication are typically short term trading views. Comments constitute views at the time of writing and are subject to change without notice. The rates shown are all indications. For specific quotations, please contact your usual trader. This document is not intended as an offer, solicitation or recommendation to buy or sell.