Rational FX: VAT increase means up to an extra £600/yr in taxes for families [04/01/2011]

Yesterday’s Market Movers

• There was no data out from the UK yesterday due to a public bank holiday.
• In the euro zone we had data realised from German purchasing manager index for December, these figures came in at 60.7 these figures had little impact on the euro due to the quiet period of the year.
• In the United States we had 2 pieces of data firstly in the way of construction spending which came in at 0.4%, followed by ISM which saw a slight increase of 0.4% to 57.0 this also had little movement on the market due to thin trading at this point.

Today’s Market Movers

• Today Europe see’s the German unemployment data released. These figures are looking to come out at -12k from -9k which is a slight drop. The euro zone will watch this data closely as it will go some way to represent the health of the largest economy in Europe.
• In the UK today we have M4 money, this is a measure of sterling in circulation in the UK this is considered as indicator of inflation.
• Also out in the UK are mortgage approvals these are looking to come in slightly higher at 47,000 which shows a healthy housing market and sterling positive.
• There are two pieces of information from the United States firstly coming in the of Factory orders these are looking to come in at -0.1% is key piece of information which gives an insight to inflation and growth in the US.
• Secondly we have the FOMC minutes, these meetings that review economic and financial conditions in the US. These are a clear guide to future interest rates and are closely watched by policy makers