Sterling
US dollar
The US dollar had a mixed day on Friday as data released showed that the US trade deficit was wider than expected. The Chairman of the Federal Open Market Committee is speaking this week, as well as several other of members and traders will pay close attention to what they have to say following the release of last months FOMC meeting minutes which revealed that several members suggested that they wanted to tighten monetary policy at some point in 2013. There is a raft of other days out this week including retail sales figures, inflation data and consumer confidence statistics. Moreover, we will see the release of building permits data, a manufacturing survey of economic health and the weekly change in the number of people claiming unemployment benefits. With so much data released this week, call in to see how this may affect the markets.
Elsewhere, the Japanese yen struggled on Friday as traders continued to speculate that the Bank of Japan will look to loosen monetary policy; furthermore, that the central bank may look to raise its inflation target to 2%. Worse than expected Swiss inflation data - showing prices deflated by 0.2% - caused the Swiss franc to be sold off, with the euro strengthening to 1.2170 against the Swiss franc. Chinese inflation data released on Friday was slightly higher than expected as was a surge in exports; however, some analysts are suggesting these figures could be unreliable. It should be a quiet day in Japan as the banks will be closed in observance of Coming-of-Age Day. The main data released this week includes Australian employment figures, New Zealand inflation data and Chinese GDP data. Call in now for a live price and a market up date.
We are approaching a key support level of 1.20 against the euro as sterling continued its bad week on Friday dropping for a sixth consecutive day against the euro falling to 1.2060 - the lowest since April 2012 - following the release of terrible manufacturing production data which showed it shrinking by by 0.3 % when growth of 0.5% had been anticipated. More negativity came as the National Institute of Economic and Social Research (NIESR) predicted that the UK's economy contracted by 0.3% percent in the fourth quarter, increasing the fears that the UK is slipping back into recession. There is not a great deal of data expected to be released today; but, we may well see some volatility tomorrow as the markets react to the monthly release of Consumer Price Index (CPI) inflation data - the UK's headline inflation reading. On Friday we will have the retail sales data and report released which will show us December's consumer spending and could well affect sterling's strength if we see another weak reading. Sterling suffered its biggest weekly loss against the euro in almost a year last week as the fragile state of the UK's economy started to be reflected in the markets, call in now to see how this trend may continue.
Euro
The euro performed well on Friday as confidence in the region continued to increase with falling interest rates on Spanish government bonds. The euro reached an eight month high of 1.2060 against sterling, whilst peaking at 1.3350 against the US dollar. It is a relatively quiet week on the data front in Europe with the benchmark 10-year bond auctions from France and Germany being the main events. Alongside this we have the European Central Banks monthly bulletin as well as inflation data. Call in now to for an up to data market information.The US dollar had a mixed day on Friday as data released showed that the US trade deficit was wider than expected. The Chairman of the Federal Open Market Committee is speaking this week, as well as several other of members and traders will pay close attention to what they have to say following the release of last months FOMC meeting minutes which revealed that several members suggested that they wanted to tighten monetary policy at some point in 2013. There is a raft of other days out this week including retail sales figures, inflation data and consumer confidence statistics. Moreover, we will see the release of building permits data, a manufacturing survey of economic health and the weekly change in the number of people claiming unemployment benefits. With so much data released this week, call in to see how this may affect the markets.
Worldwide
Elsewhere, the Japanese yen struggled on Friday as traders continued to speculate that the Bank of Japan will look to loosen monetary policy; furthermore, that the central bank may look to raise its inflation target to 2%. Worse than expected Swiss inflation data - showing prices deflated by 0.2% - caused the Swiss franc to be sold off, with the euro strengthening to 1.2170 against the Swiss franc. Chinese inflation data released on Friday was slightly higher than expected as was a surge in exports; however, some analysts are suggesting these figures could be unreliable. It should be a quiet day in Japan as the banks will be closed in observance of Coming-of-Age Day. The main data released this week includes Australian employment figures, New Zealand inflation data and Chinese GDP data. Call in now for a live price and a market up date.
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