From the UK yesterday it was something of a disappointment seen when construction PMI data came in below expectationsat 55.3 instead of the 58.4 anticipated. This is the worst we’ve seen it since 2013 as commercial development builds overtook residential builds. GBP took a knock in strength against USD following this, but this was also attributed to dollar strengthening. There has also been concern shown following the UK’s decision yesterday to begin military operations in Syria.
In terms of data today, we’ll see services PMI out this morning which will have an effect on GBP strength if a weakening is seen.
Mixed fortunes were had by the euro as it lost out against the dollar but gained against pound –although, by the end of the day EUR had clawed back some losses the day up and flat against USD. In terms of data out, we saw a big improvement in Spanish unemployment levels (down by 17k).
In terms of data today, there will be 8 data releases of importance, one of which is the minimum bid rate, which is chased with an ECB presser. What pundits are going to be looking for are policy announcements from the ECB and what effect those might have in redressing economic issues.
Employment data (ADP) was also good in the States yesterday, coming in at a better 217,000. We also saw Janet Yellen give a speech last night in which she said that if the US does not hike rates this later this month then we could see the US in a state of catching up to competitors. This might lead to more ‘tightening’ down the road, she said, that could then lead to a possible recession. At this point though, it’s widely (66%) held that the rate will be raised in the next couple of weeks.
There may be some more excitement from Yellen today as we’ll see her speak this afternoon in front of the Joint Economic Committee. What will she have to say?
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.