The pound was able to reverse a four day slide against the kiwi yesterday, following positive data in the UK labour market. Figures showed that fewer than expected Britons claimed for unemployment benefit month-on-month in September, and the overall unemployment rate held steady at 7.9%, beating market expectations of a rise to 8.0%. The kiwi also suffered after some investors turned bearish following weak US retail sales, which fell in September by the largest amount in 2009, driven by a fall in car sales at the end of the country’s scrappage scheme.
Posts Tagged ‘Market Expectations’
Sterling has picked itself up from multi-year lows against the kiwi, buoyed by improving economic sentiment
Posted by admin on October 15th, 2009
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Weak equities undermined the aussie’s upward trend yesterday allowing the pound to post marginal gains
Posted by admin on October 8th, 2009
The pound rebounded nearly two cents from its intra-day low against the aussie, halting its sharp slide and posting marginal gains of 0.2%, to close the day up at 1.7912. The Australian dollar has rallied strongly over the past two days following the surprise rate hike, but the aussie pulled backed yesterday as risk sentiment in the market dissipated. The high-yielding currency backtracked as equities took a downward turn and as investors sought defensive positions ahead of important statements in the UK and EU today. Additionally, analysts noted that market players may have over-bought the aussie, realising that it was only one central bank to raise rates and that similar moves from other nations may still be some way off.
Stong servies data and rallying equities were unable to buoy a weak pound yesterday, enabling the dollar to creep up
Posted by admin on October 6th, 2009
The pound continued to edge downward, undermined by speculation ahead of the MPC meeting later this week. Data revealed that Britain’s services sector grew more strongly than expected in September, expanding at its fastest rate for two years, quelling fears over the UK recovery following weak PMI data in the manufacturing and construction industries last week. However, the data failed to buoy confidence in the pound significantly with investors remaining wary of taking positions in UK assets ahead of the MPC statement this week. Additionally, business activity in the US non-manufacturing sector expanded in September, against market expectations of standstill, which supported dollar buying.
Selling pressure held firm on the pound yesterday, with the euro price falling below €1.08
Posted by admin on October 6th, 2009
The pound was unable to capitalise on improved services data, eventually losing over half a cent to a broadly stronger euro.The pound initially found some respite as positive data from the services sector bolstered expectations that the economy resumed growth in the third quarter. The purchasing managers’ index for the services sector showed a rise to 55.3 in September, showing improvement from last month and exceeding market expectations. However, sterling quickly relinquished its gains over expectations that the MPC meeting later this week will reaffirm that the UK monetary policy will remain comparatively loose for some time.
Pound advanced against a broadly weaker euro yesterday, but has stumbled in trading this morning
Posted by admin on October 2nd, 2009
Sterling climbed half a cent against the single currency yesterday, helped by a weaker euro, which was undermined by comments from an EU official.In early trading, the pound was able to brush off an unexpected fall in the UK Manufacturing industry, which contracted to 49.5 in September, from 49.7 in August, against the market expectations of an increase to 50.3. The pound then gained against a broadly weakened single currency as European officials expressed discomfort over the euro’s recent rise in value. A top European official announced that he would discuss the EU’s concern over the recent appreciation of the euro at the G7 meeting this weekend.
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Broad dollar weakness and an increase in demand for sterling has pushed the price back near $1.63
Sterling achieved a three-week high of 1.6297 against the dollar yesterday, supported by upbeat comments about the UK economy. The pound jumped nearly three cents, or 1.8%, against the dollar on speculation that policy makers will pause their asset-purchase programme next month as the economy shows signs of recovering from the recession. The Financial Times cited Bank of England Markets Director Paul Fisher as saying that the asset purchases scheme may be paused to give the central bank the option “of doing more later.” Analysts suggested that it appeared that the Bank of England was letting it be known in more forceful terms that it is not talking the pound down any longer.
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