As we thought yesterday sterling managed to regain its legs after being squeezed lower on Monday on liquidity concerns. The pound, despite some negative data from the manufacturing sector, moved back above the 1.10 level against the euro and through 1.66 against the US dollar.
The weak manufacturing data was in the form of the PMI release. This fell to 51.8 from an expected figure of 54.0. While this means that activity in the industry is still increasing it is at a barely noticeable rate.
In the depths of the recession companies ran down inventories so as to not spend money on new product. When the inventory ran out they had to reorder and hence we saw an uptick in the manufacturing sector globally. The problem is however that the retailers are still having problems selling on the finished goods and hence are once again building up inventories. This will lead to falls in manufacturing activity, the PMI and crucially GDP.
This is not just a UK affair as well; US ISM manufacturing was also weaker than expected at 53.6 vs. 54.8 expected.
The data calendar is quieter today with UK construction PMI due at 09.30 and ADP employment change from the US at 13.15.
You can also follow us live on Twitter at http://twitter.com/World_First
|
Latest Exchange Rates At Time Of Writing
|
|
Indicative Rates
|
Sell
|
Buy
|
|
GBP/EUR
|
1.0974
|
1.1001
|
|
GBP/USD
|
1.6572
|
1.6596
|
|
EUR/USD
|
1.5085
|
1.5108
|
|
GBP/JPY
|
144.68
|
144.95
|
|
GBP/AUD
|
1.7877
|
1.7901
|
|
GBP/NZD
|
2.2762
|
2.2818
|
|
GBP/CAD
|
1.7303
|
1.7362
|
|
NZD/USD
|
0.7271
|
0.7291
|
|
GBP/ZAR
|
12.05
|
12.10
|
|
USD/ZAR
|
7.2654
|
7.3011
|
|
GBP/PLN
|
4.4961
|
4.5244
|
|
EUR/JPY
|
131.63
|
131.93
|
|
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.q
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.
|
|
Leave a Reply