Sterling climbed over a cent and a half against the kiwi in trading yesterday as the market briefly turned bearish on higher-yielding currencies. The pound reversed losses incurred on Monday, but closed the day some way from its intra-day high of 2.2000 as investors held back from taking significant positions ahead of the UK MPC minutes released today. The kiwi dollar, which has broadly risen as the global economy shows increasing signs of recovery, fell back as demand for “riskier” assets stumbled following some weak economic data from the US economy.
Posts Tagged ‘Economic Data’
Sterling has resumed its recent upward trend against the kiwi, buoyed by brief market selling in high-yielders and by the MPC minutes
Posted by admin on October 21st, 2009
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Lower equites, dulled risk appetite yesterday enabling the US dollar to post gains against the euro
Posted by admin on October 21st, 2009
The single currency slipped back from a fresh 14-month high against the dollar following further comments from the ECB that expressed apprehension over the euro’s strength. In early trading, options buying once again prevented the euro from pushing through the psychologically important $1.50 level, posting a high of $1.4993. The single currency was supported after further positive corporate earnings weighed on haven demand for the dollar, emboldening investors to sell the low-yielding US unit to fund the purchase of riskier, higher-yielding assets elsewhere. However the euro fell back as the ECB repeated their support for the US Treasury’s self-professed strong-dollar policy, and expressed concerns over recent “volatile” trends in the market and the strength of the single currency In the afternoon Wall street slipped as tame US inflation data offset strong quarterly earnings from Apple, denting investor appetite to sell the low-yield dollar. The economic data, which showed that the US PPI unexpectedly dropped by 0.6% last month, disappointed market expectations and helped the greenback recover earlier losses, though analysts said that it would remain under pressure as long as stocks continued to show an upward trend.
Sterling edged down against the dollar yesterday, but is currently trading back over 1.65 this morning
Posted by admin on October 21st, 2009
Sterling capped its five-day upward trend against the dollar, falling back from a one-month high of $1.6487 as weak economic data supported the haven currency. In early trading, sterling held steady against the dollar after UK public finances showed a weak figure but better than market expectations, which offset the negative impact of news that Qatar are selling a significant stake in Barclays bank. Data showed a deficit reading of £14.8 billion bringing Britain’s public spending to its worst six months on record, however, the data was better than forecasts, which analysts said boosted sterling’s gains.
Improving global economic sentiment continues to raise demand for kiwi assets, boosting the NZ currency vs the pound
Posted by admin on October 20th, 2009
The kiwi advanced over three and a half cents (1.6%) against the pound yesterday as investors showed renewed enthusiasm for risky assets. Rising commodity-prices and stronger-than-expected corporate earnings in the US have contributed to continued demand for higher-yielding currencies. In addition, investors are now pricing in that New Zealand’s central bank is likely to drop its monetary- easing bias at its meeting next week as economic data point to improvement. Although there has been speculation that the RBNZ has expressed concern that the strength of the kiwi is frustrating economic recovery, strong data has investors questioning whether the central bank can keep interest rates on hold until the middle of next year.
Positive economic data supported euro gains vs the US dollar yesterday, but the price has pulled back this morning
Posted by admin on October 16th, 2009
The single currency pushed higher once again as the greenback suffered from rising appetite in the wake of positive economic signs.The dollar initially made after ECB President Trichet said that the US government and the Federal Reserve should pursue policies supporting a strong dollar and that excessive foreign-exchange volatility is an “enemy.” However the euro trimmed its losses in the afternoon following positive US data, which bolstered expectations that the economy is recovering. US jobless claims beat market forecasts dropping a further 10K week-on-week. The US CPI figure also rose marginally to 0.2%, supporting growing optimism over the economic recovery.
Kiwi halted its climb yesterday, as demand for higher-yeilding currencies weakened
Posted by admin on October 8th, 2009
Sterling reversed a three-day decline against the kiwi, posting marginal gains following a rise in risk aversion, closing the day at 2.1682. It was a choppy session for sterling, which initially dropped to a low of 2.1476 in early trading, as a lack of major economic data gave support to the higher-yielding currency. However, having dipped, the pound rebounded strongly, regaining over two cents as global equities backed off to trade in the red. Weak European stocks were followed in by the US markets, easing risk appetite and allowing the UK currency to stabilize in the afternoon, consolidating its position above 2.1650.
Sterling posted gains vs the single currency, with the market forecasting no change in MPC policy
Posted by admin on October 8th, 2009
Having hit a fresh six-month low against the single currency in early trading , the pound rebounded yesterday, to close up half a cent at 1.0864. Unexpectedly weak data in the UK manufacturing industry on Tuesday continued to weigh heavily on the pound, dragging sterling to a 6-month low of 1.0781. With little data out in either the UK, the eurozone, or the US yesterday, markets initially continued to take direction from Tuesday’s data, which supported sterling selling. The euro trimmed its gains though following the second quarter final GDP figure for the eurozone, which was revised downward from a contraction of 0.1% to 0.2%, dampening the broadly positive sentiment towards the currency.
Negative UK economic data pushes the pound down against a broadly weakened dollar
Posted by admin on October 7th, 2009
Sterling was unable to capitalize on an early rally against the dollar as weak economic data reaffirmed fears over the fragility of the UK recovery.Sterling initially advanced over a cent yesterday morning as selling pressure on the US currency mounted following an article stating that the dollar could cease to be used in oil trades in the Gulf States. However the pound relinquished its gains after weak manufacturing production data sapped investor demand for the UK currency. The manufacturing sector revealed a 1.9% decrease in production in August, reversing a three month increase in output, and falling well below expectations of a 0.4% rise.
The kiwi was weaker in trading yesterday following some concerning US economic data
Posted by admin on October 2nd, 2009
The pound made gains yesterday, taking support from a revised IMF report and an easing of risk activity to close the day at 2.2316 up 0.7%. Rising risk aversion enabled the pound to advance over a cent against the kiwi yesterday, with investors retreating into haven currencies. US employment claims rose last week, posting a figure well above forecast, dulling hopes of a swift recovery in the US, but supported gains for the UK currency. The negative data led to a sharp retreat in equity markets which prompted investors to sell the higher-yielding currencies.
The euro slid sharply against the dollar yesterday, weighed down by a rise in risk aversion
Posted by admin on October 2nd, 2009
The dollar rallied against the single currency yesterday after a run of disappointing manufacturing data left investors unwilling to take on risk.The single currency took a sharp downward turn, weighed down by comments from a top European official who expressed concern about the value of the euro. He said that European finance ministers would discuss the single currency’s recent appreciation at the G7 meeting this weekend. Waning risk appetite amid a mixed batch of US economic data also prompted investors to seek the perceived safety of the greenback. Data yesterday showed US initial jobless claims rose in the latest week, a reminder that the labour market is far from stable.
Aussie made strong gains yesterday as further positive economic data supported investor demand
Posted by admin on October 1st, 2009
Tuesday’s gains for the pound proved short lived as the aussie advanced over two cents (1.3%) to send the price down to a close of 1.8091. The aussie was buoyed by a larger than expected rise in retail sales in Australia, which heightened expectations that the Reserve Bank of Australia would be among the first of the world’s leading central banks to start raising interest rates. Sales beat forecasts in jumping 0.9% in August from a 0.9% decline in July, which buoyed demand for the high-yielding currency. Analysts noted that the aussie dollar is being well supported from Australia’s status as a big beneficiary of the solid Chinese economy.
Euro advanced yesterday but its progress has been halted today in the wake of dovish euro speculation
Posted by admin on October 1st, 2009
The euro pushed higher against the dollar yesterday in choppy trading, even as disappointing US economic data weakened stocks.The single currency made strong gains yesterday morning, supported by the results of the ECB cash tender offer. The volume of bids was lower than expected, which implied that financial conditions in the eurozone were improving and there may be less need for the ECB to inject money into the market. Additionally, German unemployment fell again in September and even after seasonal adjustments, the number of jobless fell by 12,000, resulting in an overall dip in the unemployment rate to 8.2%, which buoyed demand for the single currency.
Positve UK data enabled the pound to reverse losses against the aussie yesterday
Posted by admin on September 30th, 2009
The pound reversed recent losses to gain 0.75% on the aussie yesterday in the wake of some positive economic data, which spurred investor demand. A GDP revision showed that British output contracted 0.6% in the second quarter compared with activity in the first three months of 2009, better than the previous estimate of -0.7%, according to the Office for National Statistics This data was supported by higher realised sales and an increase in net lending to individuals, which, together, underlined hopes that the UK should pull out of recession in the 3 rd quarter.
More positive investor sentiment returned to the UK yesterday, supporting a slight pound recovery
Posted by admin on September 30th, 2009
Sterling reversed a four day slide against the dollar yesterday, supported by positive economic data that included another upward revision of the 2nd quarter GDP figure. The final gross domestic product figure showed that UK growth contracted by 0.6% between April and June, a narrower fall than the previous estimate of a 0.7% contraction. The revision is almost entirely due to stronger estimates of construction output than previously forecast, according to analysts. Sales volumes at U.K. retailers also bounced back more than expected to their strongest level for five months in September and are expected to remain steady in October.
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Sterling is currently trading higher against the aussie following upbeat comments and a move to cash profits
Sterling recovered some of its recent extensive losses against the aussie dollar yesterday, climbing over two cents, to close up at 1.7668. Bank of England member, Paul Fisher, said yesterday that policy makers would be more likely to pause asset purchases in their upcoming meeting in November, giving themselves the option of “doing more later,” rather than stopping them. His comments were taken to read that the MPC is unlikely to extend their quantitative easing programme, supporting a slight rise in confidence in the UK economy, strengthening the pound. In broad terms, the aussie traded strongly against most currencies yesterday as positive economic data in the US led to investors adding to their long positions in the higher-yielding currency.
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