PhilBen
14th October 2009, 08:55
The Pound gained against the majors yesterday despite Deflation and more calls to Increase in Stimulus. The Chamber of Commerce had also released its own assessment. The group claimed it was unlikely that the economy grew through the third quarter and the BOE should consider increasing bond purchasing, up to an additional 200 billion pounds to help the recovery. Retail sales gauge for September reported a 4.9 percent increase in total store sales, the best performance in five months. However we could see the pound under more pressure today with the Claimant Count for September and the Unemployment Rate for August out today.
The Dollar declined against the Euro and the Pound as dovish comments from Vice Chairman Donald Kohn U.S. Federal Reserve that he expects "the persistence of economic slack, accompanied by stable longer-term inflation expectations, will keep inflation subdued for some time.
The Euro declined against the Pound while rising to a 14-month high against the Dollar due to growing expectations the Federal Reserve will keep interest rates low for at least the next year. Also to note German ZEW survey showed a decline in economic sentiment in October. While expectation is that growth will return in coming months, the yawning gap between expectations and current conditions suggested that something eventually had to give.
Australian Dollar had a softer than expected result in the NAB business confidence survey and did little to curb enthusiasm for the Aussie dollar against most of the majors. The pound did make some gains but has fallen off below 1.75’s as UK markets opened this morning.
Interbank Rates at 9.50 am UK Time
GBP-EURO 1.073
GBP-USD 1.598
GBP-AUD 1.748
Data released 14th October 2009
UK 09.30 Average Earnings (3 Months to August)
UK 09.30 Claimant Count (September)
ILO Unemployment (August)
EU 10.00 Industrial Production (August)
US 13.30 Export Prices (September)
Import Prices
US 13.30 Retail Sales (September)
Ex Autos
US 15.00 Business Inventories (August)
The Dollar declined against the Euro and the Pound as dovish comments from Vice Chairman Donald Kohn U.S. Federal Reserve that he expects "the persistence of economic slack, accompanied by stable longer-term inflation expectations, will keep inflation subdued for some time.
The Euro declined against the Pound while rising to a 14-month high against the Dollar due to growing expectations the Federal Reserve will keep interest rates low for at least the next year. Also to note German ZEW survey showed a decline in economic sentiment in October. While expectation is that growth will return in coming months, the yawning gap between expectations and current conditions suggested that something eventually had to give.
Australian Dollar had a softer than expected result in the NAB business confidence survey and did little to curb enthusiasm for the Aussie dollar against most of the majors. The pound did make some gains but has fallen off below 1.75’s as UK markets opened this morning.
Interbank Rates at 9.50 am UK Time
GBP-EURO 1.073
GBP-USD 1.598
GBP-AUD 1.748
Data released 14th October 2009
UK 09.30 Average Earnings (3 Months to August)
UK 09.30 Claimant Count (September)
ILO Unemployment (August)
EU 10.00 Industrial Production (August)
US 13.30 Export Prices (September)
Import Prices
US 13.30 Retail Sales (September)
Ex Autos
US 15.00 Business Inventories (August)