Weekly Currency Update - GBP/USD Week ending 9th October
Oct 13th 2009, 10:23 am
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Weekly Currency Update - GBP/USD Week ending 9th October
Hi All,
As promised here’s a brief update on what’s been happening with the US Dollar over the last week.
The ISM Non-manufacturing PMI (50.9) showed expansion for the first time in 12 months and gave further evidence that the US economy is gradually recovering. Nonmanufacturing (service industries) is extremely significant as it contributes almost 90% to GDP (Gross Domestic Product) and indicates that the emerging recovery is spreading from housing and factories to the broader economy. Forward looking sub-indices of the survey were also positive as new orders rose to the highest level since October 2007 and employment rose to 44.3, the highest since August 2008 and signalled that the pace of job cutting was decelerating.
Other data showed that Consumer Credit (-12.0b) continues to fall as households reduced debt for the 7th straight month and Wholesale Inventories (-1.3% m/m) dropped for the 12th consecutive month, clearing the way for a pick-up in orders as and when sales start to improve. Towards the end of the week, Federal Reserve Chairman Bernanke underpinned the growing positive sentiment with comments that were interpreted as being hawkish and raised the prospect that the Fed was closer to raising rates than previously expected. The comments helped the USD Index (a measure of the USD against a basket of currencies) bounce off a 14 month low but did not phase equity market indices that recorded their best weekly gains since mid-July. A full diary of economic indicators will be watched closely along with key company earnings reports due for release this week.
GBP/USD Movement – High’s & Low’s of last week (05/10/09 – 09/10/09)
High’s: 1.6122
Low’s: 1.5826
A movement of: 1.87%.
Difference on £200k
High: $ 322,440
Low: $ 316,520
Difference of: $5,920
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.
The ISM Non-manufacturing PMI (50.9) showed expansion for the first time in 12 months and gave further evidence that the US economy is gradually recovering. Nonmanufacturing (service industries) is extremely significant as it contributes almost 90% to GDP (Gross Domestic Product) and indicates that the emerging recovery is spreading from housing and factories to the broader economy. Forward looking sub-indices of the survey were also positive as new orders rose to the highest level since October 2007 and employment rose to 44.3, the highest since August 2008 and signalled that the pace of job cutting was decelerating.
Other data showed that Consumer Credit (-12.0b) continues to fall as households reduced debt for the 7th straight month and Wholesale Inventories (-1.3% m/m) dropped for the 12th consecutive month, clearing the way for a pick-up in orders as and when sales start to improve. Towards the end of the week, Federal Reserve Chairman Bernanke underpinned the growing positive sentiment with comments that were interpreted as being hawkish and raised the prospect that the Fed was closer to raising rates than previously expected. The comments helped the USD Index (a measure of the USD against a basket of currencies) bounce off a 14 month low but did not phase equity market indices that recorded their best weekly gains since mid-July. A full diary of economic indicators will be watched closely along with key company earnings reports due for release this week.
GBP/USD Movement – High’s & Low’s of last week (05/10/09 – 09/10/09)
High’s: 1.6122
Low’s: 1.5826
A movement of: 1.87%.
Difference on £200k
High: $ 322,440
Low: $ 316,520
Difference of: $5,920
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
