8th of September 2010
 

MARKET NEWS 12TH MARCH 2010

Good Morning,

GBP

The Pound gained support steadily yesterday despite a lack of fundamental UK economic data. Trading levels picked up throughout the day and reached a high €1.1030 against the Euro and $1.5064 against the US Dollar.  The Pound was given a boost on the back of a Bank of England Inflation Survey which stated that inflation expectations were at a two year high. The day ahead will once again be dominated by external economic data as there are limited reports from the United Kingdom.

EUR

The Euro managed to prevent any further losses against the US Dollar yesterday. Trading levels remained in a narrow trading range throughout the day. The day ahead may experience more volatility as the European Industrial Production will be released. This is expected to increase from -1.6% up to 0.8% for the month of January.

USD

Economic data from China caused a modest US Dollar sell-off throughout the day. An unexpected rise in China inflation together with strong industrial production and retails sales increased investor risk appetite. Later in the day the US Trade balance was released showing a Trade Deficit of $-37.29 Billion. This is the 17th straight month the US has been in deficit. The day ahead will see the release of the US Retail Sales for the month of February, and the US Consumer Sentiment Index.

Chris Canning.

 


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