Weekly Currency Update GBP/USD - Week ending 23rd July 2010
Jul 27th 2010, 9:20 am
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Weekly Currency Update GBP/USD - Week ending 23rd July 2010
As promised here’s a brief update on what’s been happening with the US Dollar over the last week.
Last week saw an interesting tussle between strong US earnings and weak US data and investors chose to focus on the future rather than backward looking data, by buying US equities. Interestingly though, and somewhat concerning is the fact that US Treasury yields also reached record low levels. This highlights the fact that investors remain cautious about the sustainability of the economic recovery despite positive earnings releases.
Housing data was weak overall with only existing home sales beating expectations, albeit by a small amount. Weekly jobless claims were once again disappointing, jumping by 35k to 464k. Fed Chairman Ben Bernanke gave his testimony to the US Senate Banking Committee and the rhetoric was much the same as we have heard from most Fed officials recently; interest rates are likely to remain at extraordinarily low levels for an extended period; unemployment still a major concern and will be sluggish in the coming year. Bernanke also used the phrase “unusually uncertain” to describe the outlook for the US economy which caused some concern amongst market analysts.
US corporate earnings should continue to dictate market direction this week but key data to watch for will be a further update on the US housing sector with New Home Sales and the Case Schiller House Price Index. The Fed’s Beige Book and Advance GDP numbers will be closely scrutinized as the market looks to take the pulse of the US economy.
GBP/USD movement – High’s & Low’s of last week 19th July – 23rd July
High’s: 1.5451
Low's: 1.5125
A movement of 2.16%
Difference on £200,000
High: USD 309,020
Low: USD 302,500
Difference of: USD 6,520
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
Last week saw an interesting tussle between strong US earnings and weak US data and investors chose to focus on the future rather than backward looking data, by buying US equities. Interestingly though, and somewhat concerning is the fact that US Treasury yields also reached record low levels. This highlights the fact that investors remain cautious about the sustainability of the economic recovery despite positive earnings releases.
Housing data was weak overall with only existing home sales beating expectations, albeit by a small amount. Weekly jobless claims were once again disappointing, jumping by 35k to 464k. Fed Chairman Ben Bernanke gave his testimony to the US Senate Banking Committee and the rhetoric was much the same as we have heard from most Fed officials recently; interest rates are likely to remain at extraordinarily low levels for an extended period; unemployment still a major concern and will be sluggish in the coming year. Bernanke also used the phrase “unusually uncertain” to describe the outlook for the US economy which caused some concern amongst market analysts.
US corporate earnings should continue to dictate market direction this week but key data to watch for will be a further update on the US housing sector with New Home Sales and the Case Schiller House Price Index. The Fed’s Beige Book and Advance GDP numbers will be closely scrutinized as the market looks to take the pulse of the US economy.
GBP/USD movement – High’s & Low’s of last week 19th July – 23rd July
High’s: 1.5451
Low's: 1.5125
A movement of 2.16%
Difference on £200,000
High: USD 309,020
Low: USD 302,500
Difference of: USD 6,520
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
