PhilBen
19th January 2010, 08:55
The Pound The pound strengthened above 1.136 0n the Euro for the first time since Sept, as Rightmove House Prices showed U.K. house prices increased in January, adding to speculation the economic recovery is gaining momentum. The Average asking price for homes in the UK jumped 0.4 percent from the previous month. The pound also made gains against the yen and continued the climb on the dollar. Mitul Kotecha, global head of currency strategy in Hong Kong at Calyon, the investment-banking unit of Credit Agricole SA. “The pound is among our favourite currencies this year. A lot of negative news has already been in the price.” The pound could also advance as Bank of England Governor Mervyn King and his colleagues put a hold on the bond-purchase program next month.
The Dollar With gains against the Euro, the US Dollar is looking to be in a mixed bag. The pound is looking more likely to push the Dollar above the 1.64 level. However the Dollar could push the Euro back to the low 1.40’s. As we have seen in the past Pound strength may be short lived, as doubts on the economy still exists within the market.
The Euro is expected to be dovish this week as Greece is likely to keep weighing on the Euro. However positive data from the UK is a must for sterling to carry on its momentum.
Data released 19th Jan
JP Consumer Confidence
GB CPI
DE ZEW (Current Conditions)
DE ZEW (Economic Sentiment)
EURO ZEW (Economic Sentiment)
CA Leading indicator
US Treasury International Capital System (TICS)
AU Westpac Consumer Confidence
JP METI Tertiary activity index
Live IB Rates 9.47 am
GBP-EURO 1.142
GBP-USD 1.64
GBP-AUD 1.77
EURO-USD 1.436
The Dollar With gains against the Euro, the US Dollar is looking to be in a mixed bag. The pound is looking more likely to push the Dollar above the 1.64 level. However the Dollar could push the Euro back to the low 1.40’s. As we have seen in the past Pound strength may be short lived, as doubts on the economy still exists within the market.
The Euro is expected to be dovish this week as Greece is likely to keep weighing on the Euro. However positive data from the UK is a must for sterling to carry on its momentum.
Data released 19th Jan
JP Consumer Confidence
GB CPI
DE ZEW (Current Conditions)
DE ZEW (Economic Sentiment)
EURO ZEW (Economic Sentiment)
CA Leading indicator
US Treasury International Capital System (TICS)
AU Westpac Consumer Confidence
JP METI Tertiary activity index
Live IB Rates 9.47 am
GBP-EURO 1.142
GBP-USD 1.64
GBP-AUD 1.77
EURO-USD 1.436