There wasn’t too much to speak of for the pound yesterday as data was a little thin – but there were some gains seen for GBP towards the end of the day’s trading with EUR and USD turning out disappointing data domestically. What we did see from the UK, however, was CBI reported sales numbers for retailers which came in stronger than expected. News like that is certainly a confidence booster and reduces concerns that the UK might be facing a slowdown.
In Europe we saw German IFO data released which is an indicator of the general business climate – data showed that it fell to a 22 month low which is the 6th month on the trot that the Germans have failed to hit their target. With Germany playing such a prominent role in Europe’s wellbeing, any time they’re hit hard it has a ripple effect on the rest of the Eurozone. Problems in the Middle East and sanctions against Russia are cited as some of the main causes for the issue.
The US released services PMI data yesterday which showed a slowdown to a 6 month low this month. The Dallas Fed was also seen to underwhelm for September, coming in at 10.5 as opposed to the anticipated 11, which knocked USD back a bit. On the flipside, pending home sales came in better than first thought. The markets, however, are poised for the US interest rate decision tomorrow which will certainly give some kind of idea as to where the dollar is heading.
FC Exchange is a trading name of Foreign Currency Exchange Limited. Registered office: Salisbury House, Finsbury Circus, London, EC2M 5QQ. Registered No.5452483. Authorised by the Financial Conduct Authority (No.511266) under the Payment Service Regulations 2009 for the provision of payment services. HM Revenue & Customs MLR No.12215508. Copyright © 2013 Foreign Currency Exchange. All Rights Reserved.
Recommended Content
Editors’ Picks
AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.