MARKET NEWS 18TH NEWS 2010
Good Morning,
GBP
The Pound rallied yesterday morning on the back of a drop in UK jobless claims. The claimant count declined by 32,300 for the month of February, which is the biggest monthly drop on claimant counts in 13 years. The Pound was also buoyant on the back of the united decision from the Bank of England to maintain the current levels of quantitative easing. The day ahead will see the release of the UK Mortgage approvals for the month of February. If this increases then the Pound may well gain more support as is indication economic conditions within the United Kingdom are on the up.
EUR
The Euro moved slightly higher yesterday on the back of economic data which showed that the Q4 Labour Costs rose 2.2%. This is the slowest rate of labour costs in 4 years. The day ahead will have more significant economic data as the European Trade Balance will be announced.
USD
Trading levels for the US Dollar continued to be dominated by the previous days announcement from the Federal Reserve. They voted 9-1 to keep the interest rates at the current level which is extremely close to zero. There was, however, one official (Thomas Hoenig) who stated that it was no longer necessary to keep rates extremely low for an extended period. Yesterday afternoon the US PPI was announced and this fell from 4.6% to 4.4%, despite analysts’ expectations of an increase to 5.0%. The day ahead will see the release of the US Consumer Price Index which is expected to fall month-on-month from 0.2% down to 0.1%. The Philadelphia Fed Manufacturing Survey will also be announced.
Chris Canning.
Archive News
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