MARKET NEWS 31ST MARCH 2010
Good Morning,
GBP
The Pound gained steadily throughout the day against both the US Dollar and Euro. The Pound picked up on the back of better than expected economic data releases. The UK Current Account was released showing a deficit of £1.7 Billion and the UK Gross Domestic Product improved up to 0.4%. Both of these were better than analysts’ expectations. The day ahead will have minimal data releases from the United Kingdom so the direction of the currency will depend on data from US and Europe.
EUR
The Euro fell against the US Dollar and the Pound yesterday. This was despite an increase in the German Import Price Index up to 2.6% year-on-year. This is a significant improvement from January’s 1.4% reading. Today will see the German and European Unemployment rate which is expected to increase from 8.2% up to 8.4% and 9.9% up to 10.0%. Pressure on the Euro may continue today as it was announced that Irelands banks may need to fill a multi billion Euro deficit left after the recent recession.
Chris Canning