A mixed bag of data in the US prevented the pound from sustaining early gains yesterday, eventually closing just 0.1% up on the day at $1.5980. The pound shot up against the dollar in early trading, posting an intra-day high of 1.6123, after an industry report showed consumer confidence in the U.K. jumped by the most in 14 years. But the greenback trimmed its losses after the ADP Non-farms employment data revealed a worse-than-expected change in US employment which eased risk appetite and returned investors to the haven currency. The sharp dip, was initially offset as more data revealed an upward revision in the US GDP figure to just a 0.7% contraction from a previous -1.0%, and beating forecasts of a downward revision.
Posts Tagged ‘Gdp’
Weak US data yesterday afternoon strengthened dollar appeal, trimming sterling’s gains
Posted by admin on October 1st, 2009
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Sterling made gains against the kiwi yesterday, but rising risk appetite has supported kiwi advances today
Posted by admin on September 30th, 2009
Evidence that the UK economic recovery is strengthening enabled sterling to reverse a five day slide against the kiwi, closing up at 2.2341. Sterling clawed back nearly two cents, or 0.8%, in the wake of strong data referring to retails sales, credit lending, and a final upward revision to the GDP figure.Sales volumes at UK retailers bounced back to their strongest level for five months in September, reaching levels well above expectations, whilst the second quarter GDP figure in the UK was revised to just a 0.6% contraction. The positive data was offset slightly by a weaker-than-expected UK current account deficit, but investors seemingly overlooked this, with demand for the pound broadly rising.In trading this morning however, the kiwi has advanced, supported by a survey showing business confidence in New Zealand at a ten-year high, which fed speculation of a rise in rates.The kiwi also benefitted from a sluggish dollar and strength in the aussie, which supported appetite for riskier assets.
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.
The UK economy is showing signs of recovery, which has buoyed the ailing pound
Posted by admin on September 30th, 2009
In trading yesterday the pound picked itself up from 6-month lows against the single currency, gaining 0.7% as positive data buoyed investor sentiment. In a final revision, Britain’s second quarter GDP figure was reported as -0.6%, up from a previous revision of -0.7% and strengthening claims that the UK will exit recession in the third quarter. There was also positive data from the UK CBI retail sales index, which showed considerable improvement from last month, reaching levels well above expectations. Additionally, lending to individuals rose in August, reflecting both an increase in the willingness of high street banks to extend credit, and also improved consumer confidence in the market as they begin to take on more debt.
Pound edged higher against the euro yesterday and has consolidated its position this morning
Posted by admin on September 29th, 2009
Having traded in the red for most of the day, the pound rebounded in the afternoon to close the day marginally up at 1.0859. ECB President Jean-Claude Trichet in a speech yesterday stated that the European economy will likely recover slowly in the coming months. Trichet continued, saying that it was too early for the ECB to stop pumping liquidity into the economy or to raise interest rates, which slowed demand for the single currency. Additionally, data showed that consumer prices in Germany fell faster than expected in September, which was a steeper decline than the market had looked for, capping the euro’s gains .
Forex Weekly Trading Forecast – 09.28.09
Posted by admin on September 27th, 2009
US Dollar: Optimistic Economic Outlooks to Meet Hard Facts This Week Fundamental Outlook for US Dollar: Bullish- The Federal Reserve left rates unchanged, but signaled a more optimistic outlook- University of Michigan consumer confidence jumped to a 21-month high in September- US durable goods orders tumbled 2.4% in August, marking the steepest drop since JanuaryThe US dollar ended the past week marginally higher after the Federal Reserve issued a more optimistic outlook on the economy. In the coming week, though, there will be a variety of growth indicators on hand that may help to signal whether the US recession really ended in Q2.
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Positive data from NZ keeps the kiwi advancing against the pound
Posted by admin on September 24th, 2009
Following positive news in New Zealand, the kiwi climbed strongly yesterday but had its gains steadily pulled back after the release of the MPC minutes. It was revealed early yesterday morning that New Zealand had officially exited recession posting a third quarter positive GDP figure of 0.1%, which pulled the price to a low of 2.2433.The report raised expectations that the Reserve Bank of New Zealand would move to tighten monetary policy sooner than previously forecast.However, the kiwi had most of its gains steadily eroded throughout the day’s trading after the minutes from the latest UK MPC meeting revealed no discussion over reducing current interest rates, with the pair closing at 2.2696.In trading this morning, the kiwi has advanced further, currently trading up nearly a percent, as fresh data from New Zealand showed that domestic consumer confidence jumped to a four-year high in the third quarter.
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