Well the season of good will is over for yet another year and attentions turn back to the markets and the fact that the UK forecast is downbeat. The Christmas volatility saw GBP/EUR move to within 2% of parity as the combination of slim volumes and poor economic data made sure that GBP was once again on the back foot.

The property market has tanked over 2008 and Hometrack, an influential property consultancy, believe that a further 12% decline in prices over 2009 which alongside news that 25% of houses in some areas of the UK have not sold after being on the market for the entire year spells more trouble for those of us with an interest in the housing market.

The Chartered Institute of Personnel and Development released data yesterday on the UK jobs markets which acted as a double edged sword for sterling. The good news was that they believe that unemployment will not hit the forecasted 3m figure however this was balanced by the belief that period between New Year and Easter will see the worst job losses since 1991. This data was of course released the day after the childrenswear firm Adams applied for administration with USC, a Scottish-based fashion retailer, suffering the same fate in the past 24hrs. 

The only tier 1 data today is from the US with Chicago Manufacturing PMI and Consumer Confidence which are both expected to show green shoots of recovery.

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.

You Might Also Want To Read

• World First Foreign Exchange 07 January 2010 Update: Sterling Sick of Politicians
• World First Foreign Exchange 4 September 2009 Update: Everyone Waits For NFP
• World First Foreign Exchange NZD / AUD Update: 17th August 2009
• Dollar strengthens as Fed holds rate and QE, SNB intervenes -World First’s Currency Exchange Morning Update - 25th June 2009
• World First’s Currency Exchange Morning Update - 1st July 2009
• World First’s Morning FX Update - 5th August 2008
• World First Foreign Exchange 20 January 2010: UK inflation Rockets, German Sentiments Wanes
• World First’s Morning FX Update - 24th June 2008
• World First Foreign Exchange 17 February 2010: Barclay’s Profits Give Risk a Boost
• Fears over Bail Out Continue - World First’s Morning FX Update - 24th September 2008
• World First’s Morning FX Update - 27th August 2008
• World First’s Morning FX Update - 22nd July 2008
• Buying a property abroad? Top tips on cashing in on foreign currency exchange
• World First Foreign Exchange Podcast - 27 August 2009
• Has the Tide Turned? - World First’s Sterling Update - 3rd November 2008
• World First’s Morning FX Update - 26th June 2008
• Further Pain For Sterling - World First’s Morning Update - 26th January 2009
• Euro moves to new highs
• World First NZD/AUD Weekly Update - 08th December 2008
• World First Foreign Exchange 21 December 2009: Market Close Podcast
• World First Foreign Exchange 25 September 2009 Update: King gets his way again
• World First sees 54% more people buying euros
• World First in the press: Sunday Times 21 June 2009
• Markets Quiet Before CPI - World First’s Morning Update - 17th February 2009
• Death of the Carry Trade? - World First’s Sterling Update - 27th October 2008
• Storm Clouds Could Overshadow Sterling’s Summer - World First Special Report
• World First’s Morning FX Update - 19th June 2008
• World First Foreign Exchange 9 September 2009 Update: Sterling Higher As GDP Forecast To Turn Positive Soon
• World First Foreign Exchange 18 September 2009 Update: GBP Down Again, USD Falls On Carry Buying
• Geithner To Stock Markets’ Rescue - World First’s Morning Update - 24th March 2009
• A negative outlook for the economy and a bearish start to 2008
• World First Foreign Exchange 2 December 2009: Market Close Podcast
• New Payment Services Directive - How does this affect you?
• FX Markets Confusing Before Data - World First’s Currency Exchange Morning Update
• Sterling Down But Not Out
• World First Foreign Exchange Podcast - 7 October 2009
• World First Currency Exchange Podcast - 2 September 2009
• World First Foreign Exchange 9 December 2009 Update: Greece downgrade as pre budget report looms
• Swine Flu Heightens Risk Aversion - World First’s Currency Exchange Morning Update - 28th April 2009
• Sterling has a Riot - World First’s Sterling Update - 6th April 2009
• World First NZD/AUD Weekly Update - 15th June 2009
• World First’s Morning FX Update - 1st July 2008
• US Jobs Markets Hurt Dollar - World First’s Morning Update - 9th February 2009
• World First Foreign Exchange 7 December 2009 Update: Non farms surprise on the upside.
• World First NZD/AUD Weekly Update - 30th March 2009
• World First NZD/AUD Weekly Update - 12th January
• World First in the press: The Sun Friday 23 October 2009
• World First NZD/AUD Weekly Update - 19th January
• Improved US Consumer Confidence Helps GBP & EM Currencies - World First’s Currency Exchange Morning Update - 29th April 2009
• World First Foreign Exchange 01 March 2010: Market Close Podcast