UKForex: Sterling recovers Tuesday’s losses against US Dollar [28/01/2011]

UKForex: Sterling recovers Tuesday’s losses against US Dollar [28/01/2011]

United States Dollar: Sterling has recovered a great deal of its losses against the US Dollar since Tuesday, but remains below the big figure 1.6000. The Japanese Yen was weaker across the board yesterday morning as S&P downgraded Japan from AA to AA-. Big jumps for both the GBP and USD were seen. Sterling seemingly capped under 1.6000 after gains took it to a close 1.5990 versus the Greenback yesterday. Does this now mean we are falling back into the ranges of recent? Less than surprising figures came from US Unemployment claims with it growing 47k from the forecast figure 407k. US Durable goods also came in weaker than anticipated with an actual figure of -2.5 % against a forecast figure of 1.6 %. On the plus side though, US Pending home sales picked up. Cable begins the day slightly lower than yesterday, at 1.5872 currently, but shortly ago UK consumer confidence came in at a 22 month low. All eyes will be on the US GDP release later today as the week comes to a close. 

– We expect a range today in the GBP/USD rate of 1.5940 to 1.6150 

Euro: The 17-nation currency continued to advance against the Pound and Greenback Thursday. The Euro reached new 30 day highs against the US Dollar yesterday, seeing it peak at 1.3756. ECB’s Bini Smaghi’s helped the Euro’s spike through the 1.3725 barrier stating expecting rise in imported goods cannot be ignored. This comment sparked speculation that the ECB may look to hike interest rates in the near future. These gains have fallen off though, as profit taking on the highs has dragged the pair down. Less than positive data in the US has also kept the pair lower as risk took a knock. EUR/USD opens at 1.3680. Sterling is back below 1.1600 versus the single currency. There is little more to add to what has been mentioned already. GBP/EUR opens at 1.1595. 

– We expect a range today in the GBP/EUR rate of 1.1530 to 1.1680 

Aussie and Kiwi Dollars: Sterling is lower this morning against the anitpodean currencies after its early gains yesterday. The Pound had broken through 1.6100 versus the AUD, almost eradicating the losses earlier in the week. The Pound had also advanced to 2.0725 against the NZD. Trade was fairly quiet between the currency pairing through the UK and US sessions, but the last few hours is where we have seen the Aussie and Kiwi gain back. This coincides with the UK consumer confidence figures that capped off a bad week for UK data. GBP/AUD opens the day at 1.6020 and GBP/NZD is currently 2.0548. 

– We expect a range today in the GBP/AUD rate of 1.5940 to 1.6160 

– We expect a range today in the GBP/NZD rate of 2.0440 to 2.0650

0 Comments

Leave a reply

Your email address will not be published.

*