GBP/USD Weekly Currency Update - Week ending 23rd October
Oct 27th 2009, 4:34 pm
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GBP/USD Weekly Currency Update - Week ending 23rd October
Hi All,
As promised here’s a brief update on what’s been happening with the US Dollar over the last week.
Three out of the four housing market releases failed to meet market expectations last week but overall the sector is expected to boost economic growth in Q3, which would be the first positive contribution since the end of 2005. NAHB (National Association of Home Builders) Housing Market Index (18, exp. 20), Building Permits (0.57m, exp. 0.59m) and Housing Starts (0.59m, exp. 0.62m) all disappointed, but Friday saw Existing Home Sales (5.57m, exp. 5.39m) jump 9.4% m/m to a 2 year high; even this can be downplayed as being due, at least in part, to the impending expiry (November) of the first-time buyers tax credit that has cost the government $10b to date. The housing market’s collapse and subsequent global credit crisis helped push the US into recession at the end of 2007 and remains a critical factor to any sustainable economic recovery. Equity markets continue to be pulled around by corporate earnings releases and this will continue a pace this week with high profile reports from Exxon, Chevron, Verizon, Colgate-Palmolive and Visa.
On the economic front, consumer confidence reports, Durable Goods and the first estimate of Q3 GDP (Gross Domestic Product) will be watched closely along with investor take-up of a record weekly issuance ($123b) of Treasury notes.
USD Movement – High’s & Low’s of last week (19/10/09 – 23/10/09)
High’s: 1.6696
Low’s: 1.6241
A movement of: 2.80%.
Difference on £200k
High: $333,920
Low: $324,820
Difference of: $9,100
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
A further update will be added next week.
Regards
Mark Bodega
Director - HiFX
As promised here’s a brief update on what’s been happening with the US Dollar over the last week.
Three out of the four housing market releases failed to meet market expectations last week but overall the sector is expected to boost economic growth in Q3, which would be the first positive contribution since the end of 2005. NAHB (National Association of Home Builders) Housing Market Index (18, exp. 20), Building Permits (0.57m, exp. 0.59m) and Housing Starts (0.59m, exp. 0.62m) all disappointed, but Friday saw Existing Home Sales (5.57m, exp. 5.39m) jump 9.4% m/m to a 2 year high; even this can be downplayed as being due, at least in part, to the impending expiry (November) of the first-time buyers tax credit that has cost the government $10b to date. The housing market’s collapse and subsequent global credit crisis helped push the US into recession at the end of 2007 and remains a critical factor to any sustainable economic recovery. Equity markets continue to be pulled around by corporate earnings releases and this will continue a pace this week with high profile reports from Exxon, Chevron, Verizon, Colgate-Palmolive and Visa.
On the economic front, consumer confidence reports, Durable Goods and the first estimate of Q3 GDP (Gross Domestic Product) will be watched closely along with investor take-up of a record weekly issuance ($123b) of Treasury notes.
USD Movement – High’s & Low’s of last week (19/10/09 – 23/10/09)
High’s: 1.6696
Low’s: 1.6241
A movement of: 2.80%.
Difference on £200k
High: $333,920
Low: $324,820
Difference of: $9,100
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
A further update will be added next week.
Regards
Mark Bodega
Director - HiFX
