Weekly Currency Update - GBP/USD Week ending 11th September
Sep 15th 2009, 9:01 am
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Weekly Currency Update - GBP/USD Week ending 11th September
Hi All,
Here’s an update on what’s been happening with the USD over the last week.
The Fed’s Beige Book showed stable or improving economic activity in most of the 12 districts but, at best, only indicated that the recession was starting to bottom out. Most regions reported some improvement in residential real estate markets and manufacturing but house prices continue to fall and commercial property and labour markets remain weak. As a counter to recent improving consumer confidence data, Consumer Credit (-21.6b) fell by a record amount in July and extended the run to six straight monthly falls, which is the longest series of declines since 1991. Tighter lending conditions, stagnant incomes, job insecurity and falling household wealth are forcing citizens to rebuild personal balance sheets and prospects for a consumer led recover are still far from good; government intervention, as seen in the ‘cash for clunkers’ programme, merely shifts demand from one area to another and creates nothing. Despite all the uncertainty, UoM (University of Michigan) Consumer Sentiment (70.2) continues to show improvement but when this will translate into spending, which drives 70% of the US economy, is yet to be seen. A full diary this week will see markets focused on Retail Sales and housing data.
USD Movement – High’s & Low’s of last week (7th – 11th September)
High’s: 1.6743
Low's: 1.6322
Movement of 2.58%
Difference on £200,000
High: $334,860
Low: $326,440
Difference of: $8,420
Whilst FX certainly 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.
Best Regards,
Mark Bodega
Director - HiFX
Here’s an update on what’s been happening with the USD over the last week.
The Fed’s Beige Book showed stable or improving economic activity in most of the 12 districts but, at best, only indicated that the recession was starting to bottom out. Most regions reported some improvement in residential real estate markets and manufacturing but house prices continue to fall and commercial property and labour markets remain weak. As a counter to recent improving consumer confidence data, Consumer Credit (-21.6b) fell by a record amount in July and extended the run to six straight monthly falls, which is the longest series of declines since 1991. Tighter lending conditions, stagnant incomes, job insecurity and falling household wealth are forcing citizens to rebuild personal balance sheets and prospects for a consumer led recover are still far from good; government intervention, as seen in the ‘cash for clunkers’ programme, merely shifts demand from one area to another and creates nothing. Despite all the uncertainty, UoM (University of Michigan) Consumer Sentiment (70.2) continues to show improvement but when this will translate into spending, which drives 70% of the US economy, is yet to be seen. A full diary this week will see markets focused on Retail Sales and housing data.
USD Movement – High’s & Low’s of last week (7th – 11th September)
High’s: 1.6743
Low's: 1.6322
Movement of 2.58%
Difference on £200,000
High: $334,860
Low: $326,440
Difference of: $8,420
Whilst FX certainly 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.
Best Regards,
Mark Bodega
Director - HiFX
