Weekly Currency Update GBP/USD - Week ending 19th March
Mar 22nd 2010, 11:38 pm
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Weekly Currency Update GBP/USD - Week ending 19th March
Hi All,
As promised here’s a brief update on what’s been happening with the US Dollar over the last week.
Data releases failed to inspire the market in either direction last week, with any weak numbers explained away by the ‘weather impact’. Core consumer inflation data is at 1.3%yr/yr the lowest since Jan 2004. Even if the economy picks up faster, inflation data may give enough ammunition for the doves to hold on to loose monetary policy for longer. Somewhat topical is the fact that upside price pressures persisted from medical care, which saw a second 0.5%, increase.
The weekly payroll survey points to slow job creation in March. The Federal reserve stuck pretty much to previous statements allowing for policy to remain as is for an ‘extended period’. The week ahead holds plenty of data for the housing sector that is likely to show a modest improvement in new and existing home sales.
The volatile durable goods data will be of little consequence as it is shortly followed by Q4 GDP data, which is likely to be revised down to 5.7% from 5.9%. Consumer sentiment data should show an improvement in March. The markets opened the week anxiously as analysts tried to define the impact of the major health reforms, so far it has little impact on equities.
The USD was on the back foot for most of last week but concerns over the Greece bail-out plan once again saw it stage a recovery late in the week.
GBP/USD movement – High’s & Low’s of last week (15th March – 19th March)
High’s: 1.5383
Low's: 1.4977
A movement of 2.71%
Difference on £200,000
High: USD 307,660
Low: USD 299,540
Difference of: USD 8,120
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.
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.
Data releases failed to inspire the market in either direction last week, with any weak numbers explained away by the ‘weather impact’. Core consumer inflation data is at 1.3%yr/yr the lowest since Jan 2004. Even if the economy picks up faster, inflation data may give enough ammunition for the doves to hold on to loose monetary policy for longer. Somewhat topical is the fact that upside price pressures persisted from medical care, which saw a second 0.5%, increase.
The weekly payroll survey points to slow job creation in March. The Federal reserve stuck pretty much to previous statements allowing for policy to remain as is for an ‘extended period’. The week ahead holds plenty of data for the housing sector that is likely to show a modest improvement in new and existing home sales.
The volatile durable goods data will be of little consequence as it is shortly followed by Q4 GDP data, which is likely to be revised down to 5.7% from 5.9%. Consumer sentiment data should show an improvement in March. The markets opened the week anxiously as analysts tried to define the impact of the major health reforms, so far it has little impact on equities.
The USD was on the back foot for most of last week but concerns over the Greece bail-out plan once again saw it stage a recovery late in the week.
GBP/USD movement – High’s & Low’s of last week (15th March – 19th March)
High’s: 1.5383
Low's: 1.4977
A movement of 2.71%
Difference on £200,000
High: USD 307,660
Low: USD 299,540
Difference of: USD 8,120
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.
Regards
Mark Bodega
Director - HiFX
