Foreign Exchange - UK Daily Update - Friday, March 12, 2010 8:33 - 0 Comments

World First Foreign Exchange 12 March 2010: Data Needed to Jump-Start Markets

·         FX crosses remain range-bound

·         Fears over UK debt levels and the election keep sterling low

·         US retail sales and Canadian unemployment rate due today

All this and more is available on our blog. Click here  http://www.worldfirst.com/blog

It was yet again a quiet day on the markets yesterday. The data calendar is unusually quiet this week and has left traders lost without data to influence their decisions.

The dearth of noise we have seen currencies trade within their most recent ranges (GBPEUR - 1.0950 to 1.11, GBPUSD - 1.4870 to 1.5030 and EURUSD - 1.3630 to 1.3750). Hopefully the data set due today can influence trade positively and allow equity markets and other risky assets, GBP included, to extend higher.

With the lack of data and the subsequent lack of a spotlight on the pound we did see some progress as it pushed up above the 1.50 against the dollar and over 1.10 against the euro. Sterling will likely not push too much higher than here in the near term as fears over the election and the UK’s level of debt will continue to weigh.

 The data today comes in two batches; the first from Canada, the second from the US. Canadian unemployment is due at 12.00 GMT with a consensus view of 8.3% should we see this fall we could expect risky assets to pick up the pace and aim to finish the week in a bullish mood. The second piece is US retail sales at 13.30. This is a bigger piece of news and will definitely move things around. Given the strong Non-Farm figure we saw last week we could expect the retail sales figure to be good as well. This will likely strengthen the dollar however as good US data (non-farms apart) being supporting the greenback recently.

Have a great weekend.

 

Latest Exchange Rates At Time Of Writing Indicative Rates Sell Buy GBP/EUR 1.1003 1.1030 GBP/USD 1.5095 1.5120 EUR/USD 1.3702 1.3723 GBP/JPY 136.71 137.00 GBP/AUD 1.6462 1.6486 GBP/NZD 2.1509 2.1540 GBP/CAD 1.5438 1.5473 NZD/USD 0.7010 0.7031 GBP/ZAR 11.15 11.20 USD/ZAR 7.3793 7.4150 GBP/PLN 4.2739 4.3018 EUR/JPY 124.06 124.32 Rates are dependent on amount transacted. Please call 0207 801 9080 for a live rate quote.

Please feel free to contact me (jeremy.cook@worldfirst.com) if you have any questions or thoughts regarding these updates or if you are interested in a particular event in the calendar. If you would like to discuss your foreign exchange requirements, please contact our: Corporate Foreign Exchange Team on 020 7801 9050 or our Private Client Currency Exchange Team on 020 7801 9080. To view any past or present currency blogs please click on the following link www.worldfirst.com/blog. Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms. Please click here if you would like to stop receiving the World First Morning Update.