{"id":1623,"date":"2012-03-19T10:50:27","date_gmt":"2012-03-19T10:50:27","guid":{"rendered":"http:\/\/www.mycurrencytransfer.com\/blog\/?p=1623"},"modified":"2012-05-12T14:13:17","modified_gmt":"2012-05-12T14:13:17","slug":"osborne-bulk-of-the-measures-aimed-at-helping-low-and-middle-income-earners","status":"publish","type":"post","link":"https:\/\/www.mycurrencytransfer.com\/blog\/osborne-bulk-of-the-measures-aimed-at-helping-low-and-middle-income-earners\/","title":{"rendered":"Osborne: Bulk of the measures aimed at helping low and middle income earners"},"content":{"rendered":"

\"\"<\/p>\n

Good morning and welcome to today’s foreign exchange market commentary on Monday the 19th of March 2012<\/p>\n

The UK<\/strong><\/p>\n

The pound strengthened versus the US dollar hitting a high of 1.5880 from 1.5740 on Friday after CPI data released in the US caused a flurry in dollar selling.<\/p>\n

The move was stopped at the 200-day moving average, drifting back down to 1.5820\/30 at the close of trading. Key levels to watch are 1.56 and 1.60, until either of these is broken, analysts expect trade to remain choppy.<\/p>\n

GBP\/EUR continued to trade above the psychological 1.20 level, reaching 1.2055 by midday but dropping back and finding support at 1.2006.<\/p>\n

Reports emerged the UK government will use a one-time \u00a328 billion ($44.3 billion) windfall that it will receive when its takes over the Royal Mail’s pension system next month to help pay down the country’s debt.<\/p>\n

With the markets paying close attention to Wednesday\u2019s UK budget, Chancellor George Osborne said Sunday, the bulk of the measures will be aimed at helping low and middle income earners.<\/p>\n

Globally<\/strong><\/p>\n

The US dollar weakened broadly on Friday, as the release of soft US inflation data halted a rally which had pushed the dollar to an 11-month high against the yen and a one-month high against the euro.<\/p>\n

EUR\/USD moved through resistance levels at 1.3090, instantly jumping to 1.3135 after the US CPI data release, gaining 0.71% and hitting a high of 1.3187. A break above 1.33 would be required to give a true indication of this rally’s strength.<\/p>\n

Federal Reserve President Charles Evans has commented that US monetary policymakers \u201ccan and should take additional steps\u201d to promote faster economic growth, fuelling speculation for more QE<\/p>\n

Preliminary Consumer Sentiment in the US also came out negative at 74.3 against forecasts of 75.8<\/p>\n

On Friday a report from the IMF indicated that Greece will need a decade or more to address competitiveness and could face a disorderly euro exit with any setback requiring more debt restructuring.<\/p>\n

USD\/JPY was also affected by CPI, falling to 83.52 from a session high of 83.94, US bonds helped a rebound to 83.75 but finished on a two-day low of 83.17<\/p>\n

Despite weakening on Friday, according to Commodity Futures Trading Commission data, traders anticipating a stronger dollar against its main counterpart currencies have outnumbered those predicting a drop for 26 consecutive weeks, that\u2019s the longest streak of confidence in the USD for 13 years.<\/p>\n

Data Releases <\/strong><\/p>\n

12:00<\/strong> House Price Index (HPI), which is a leading indicator of the health of the housing sector in the UK is due at 12pm<\/p>\n

12:35<\/strong> Federal Reserve William Dudley is due to speak.<\/p>\n

Today<\/strong> Both in Europe and the US, data is quite light today so all eyes will be on the remainder of the week where we have Tuesday’s UK y\/y CPI release, the release of the minutes for the latest MPC meeting as well as the UK Annual Budget due out on Wednesday at 12.30.<\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning and welcome to today’s foreign exchange market commentary on Monday the 19th of March 2012 The UK The pound strengthened versus the US dollar hitting a high of 1.5880 from 1.5740 on Friday after CPI data released in the US caused a flurry in dollar selling. The move was stopped at the 200-day moving average, drifting back down […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[110],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1623"}],"collection":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/comments?post=1623"}],"version-history":[{"count":32,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1623\/revisions"}],"predecessor-version":[{"id":1920,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1623\/revisions\/1920"}],"wp:attachment":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/media?parent=1623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/categories?post=1623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/tags?post=1623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}