PhilBen
6th October 2009, 08:55
The Pound declined against the Dollar and the Euro after UK banking stocks fell on concerns that the economic recovery may be delayed as economic growth is still fragile. UK house price data will be released this week and is expected to show price growth slowed last month. Also to note the Bank of England Governor Mervyn King recently hindered the Pound after commenting that the weaker pound was helping to cushion the UK’s down-turning economy and will help reorient the UK economy toward exports. He also cautioned that the UK economy may be picking up, but people should not get too carried away as the growth was small.
The Dollar made gains against the Pound while declining against the Euro yesterday after the closely watched ISM index surprised the markets as it declined in September disappointing expectations. Also to note risk appetite increased slightly yesterday following a rise in stocks encouraging investors to buy riskier assets.
The Euro made gains against the Pound and the Dollar yesterday following Friday’s US weaker than forecast jobs report. The Euro also continued to benefit from signs of improving economic conditions in Europe. The Euro Zone Purchasing Managers Index rose to 51.1, climbing further into the 50 territory separating growth from contraction. Although jobs in the Euro zone continued to remain elusive as the unemployment rate rising slightly to 9.6% in August.
The Australian Dollar The Bank of Australia unexpectedly increased interest rates by 25 basis points to 3.25%, sending the Aussie dollar broadly higher against most of its majors. RBA Governor Glenn Stevens said interest rates were dropped to a very low level 2008 and early 2009 on expectation of very weak economic conditions and a recognition that considerable downside risks existed, adding that the basis for low interest rate settings has now passed.” Stevens acknowledged that some areas of demand could waver as government stimulus runs its course, but seemed optimistic that growth should be close to trend over the year ahead and inflation should be close to target.
Live Interbank Rates 10.00 am
GBP-EURO 1.083
GBP-USD 1.596
GBP-AUD 1.80
Data released 6th October 2009
AUS Trade Balance
AUS RBA interest rate announcement
UK 09.30 Industrial Production (August)
Manufacturing Production
UK 15.00 NIESR GDP Estimate (3 Months to September)
The Dollar made gains against the Pound while declining against the Euro yesterday after the closely watched ISM index surprised the markets as it declined in September disappointing expectations. Also to note risk appetite increased slightly yesterday following a rise in stocks encouraging investors to buy riskier assets.
The Euro made gains against the Pound and the Dollar yesterday following Friday’s US weaker than forecast jobs report. The Euro also continued to benefit from signs of improving economic conditions in Europe. The Euro Zone Purchasing Managers Index rose to 51.1, climbing further into the 50 territory separating growth from contraction. Although jobs in the Euro zone continued to remain elusive as the unemployment rate rising slightly to 9.6% in August.
The Australian Dollar The Bank of Australia unexpectedly increased interest rates by 25 basis points to 3.25%, sending the Aussie dollar broadly higher against most of its majors. RBA Governor Glenn Stevens said interest rates were dropped to a very low level 2008 and early 2009 on expectation of very weak economic conditions and a recognition that considerable downside risks existed, adding that the basis for low interest rate settings has now passed.” Stevens acknowledged that some areas of demand could waver as government stimulus runs its course, but seemed optimistic that growth should be close to trend over the year ahead and inflation should be close to target.
Live Interbank Rates 10.00 am
GBP-EURO 1.083
GBP-USD 1.596
GBP-AUD 1.80
Data released 6th October 2009
AUS Trade Balance
AUS RBA interest rate announcement
UK 09.30 Industrial Production (August)
Manufacturing Production
UK 15.00 NIESR GDP Estimate (3 Months to September)