Rational FX: EMU to release Purchasing Manager Index figures later today [24/01/2011]

Rational FX: EMU to release Purchasing Manager Index figures later today [24/01/2011]
Fridays Market Movers

  • On Friday we had UK mortgage approvals come out for November. These figures came out less than the consensus possibly showing that banks are not lending as much to the everyday person at present; therefore sparks the idea of Q.E into the equation.
  • We also had UK Retails Sales MoM and YoY with again negative results, this could show that the economy does not feel comfortable with spending money in the current climate. Although there has been increased talk of an interest rates rise, this figure shows that they may not be needed as this supports a retract in inflation.
  • In the Euro Zone we saw Germanys IFO Business Climate come in with positive figures from the prediction. This is positive data showing that conditions are slowly looking up and possible strength for the Euro as a currency.
Today’s Market Movers

  • There is no data out for the UK and US today.
  • In the Euro Zone we have Germanys ‘Purchasing Managers Index’ for January released this morning with positive data expected. If the data stays the same or improves from previous it will show that the economic conditions in Germany are good due to the fact that business conditions are improving and could see strength for the Euro.
  • At 9:00am this morning the ‘European Monetary Union’ (EMU) will be releasing ‘Purchasing Manager Index’ figures for the European sector as a whole. All figures are expected to stay the same at 57.1 and 54.2 still showing strength for the Euro Zone as anything above 50 is seen as positive.
  • The final piece of data out for today is the ‘European Monetary Union’ Industrial New Order figures MoM and YoY. Again both figures are expected to come out better showing further strength for the Euro Zone and the Euro itself as economic conditions in Europe are  showing signs of picking up slightly.
Currencies
High
Low
Support
Resistance
GBP/EUR
1.1762
1.1718
1.1720
1.1780
GBP/USD
1.5996
1.5944
1.5895
1.6000
EUR/USD
1.3623
1.3574
1.3550
1.3630
We wish you a very nice day.

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