Foreign Exchange - UK Daily Update - Written by jeremy on Tuesday, December 22, 2009 9:03 - 0 Comments

World First Foreign Exchange 22 December 2009 Update: UK GDP the Main Factor Today

The dollar continued to strengthen against the pound yesterday with an intraday low overnight of 1.6031. As we warned yesterday we believe that the pair will fall through the 1.60 level as investors jump into the dollar for haven security.

The dollar also rose yesterday against the euro, rand and the commodity currencies.

The other main pull on FX markets yesterday, and likely to continue throughout the week, was profit taking. Pound slinked lower against the euro as investors cut positions after its recent gains. We do see GBPEUR higher by the end of the week however, possibly over the 1.13 level.

The market is a generous soul and as such keeps depositing data shaped presents in the laps of the world’s economists. Today’s stocking fillers include the final Q3 GDP reading for Q3. The previous reading was -0.3% with the market expecting it to uptick to -0.1% today. As with all things if we see a better than expected figure then we would expect GBP to rise and vice versa.

We also have inflation and GDP figures from the US at 13.30 and existing home sales and Richmond  Fed manufacturing PMI at 15.00.

German GFK consumer confidence has just been released and was slightly worse than expected: 3.3 vs. 3.6.

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Latest Exchange Rates At Time Of Writing

Indicative Rates

Sell

Buy

GBP/EUR

1.1213

1.1240

GBP/USD

1.6072

1.6098

EUR/USD

1.4314

1.4335

GBP/JPY

146.45

146.77

GBP/AUD

1.8212

1.8242

GBP/NZD

2.2747

2.2778

GBP/CAD

1.7011

1.7050

NZD/USD

0.7053

0.7076

GBP/ZAR

12.39

12.44

USD/ZAR

7.7016

7.7389

GBP/PLN

4.6914

4.7120

EUR/JPY

130.53

130.73

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.

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