Weekly Currency Update GBP/USD - Week ending 20th August
Aug 24th 2010, 8:52 am
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Weekly Currency Update GBP/USD - Week ending 20th August
As promised here’s a brief update on what’s been happening with the U.S Dollar over the last week.
US data was disappointing last week with a marked rise in Initial Jobless Claims (500k) somewhat concerning and in line with the Fed’s “re-assessment” of the economic outlook. The next two weeks numbers will be watched very closely in the lead up to the Non-farm Payrolls report. The US consumer is not going to lead the country out of recession with rising unemployment. The Philly Fed manufacturing Index plunged to negative 7.7 from +5.1, completely missing market expectations and indicating a worsening of conditions in the region. Watch the Richmond number closely this week to see if the trend is spreading across the country. Industrial Production was the only real positive data, rising by 1% for the month. Durable Goods Orders will be watched closely after last month’s disappointment. The home sales and initial claims releases will also be of interest and could result in further equity market weakness.
GBP/USD movement – High’s & Low’s of last week (16th August– 20th August)
High’s: 1. 5701
Low's: 1. 5461
Difference on £200,000
High: USD 314,020
Low: USD 309,220
Difference of: USD 4,800
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
US data was disappointing last week with a marked rise in Initial Jobless Claims (500k) somewhat concerning and in line with the Fed’s “re-assessment” of the economic outlook. The next two weeks numbers will be watched very closely in the lead up to the Non-farm Payrolls report. The US consumer is not going to lead the country out of recession with rising unemployment. The Philly Fed manufacturing Index plunged to negative 7.7 from +5.1, completely missing market expectations and indicating a worsening of conditions in the region. Watch the Richmond number closely this week to see if the trend is spreading across the country. Industrial Production was the only real positive data, rising by 1% for the month. Durable Goods Orders will be watched closely after last month’s disappointment. The home sales and initial claims releases will also be of interest and could result in further equity market weakness.
GBP/USD movement – High’s & Low’s of last week (16th August– 20th August)
High’s: 1. 5701
Low's: 1. 5461
Difference on £200,000
High: USD 314,020
Low: USD 309,220
Difference of: USD 4,800
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
