Currency Market Update 16/09/09
Posted: Wednesday, September 16, 2009
by Phil Bennetts
Foreign Exchange Explained
The Dollar made gains against the Pound while remaining relatively unchanged against the Euro as better-than-expected retail data pointed to a US led economic recovery. Sales at US Retailers rose 2.7% in August, bolstered by the government-sponsored "Cash for Clunkers" program. The increase was the largest jump in retail sales in over three-and-half years and easily surpassed analysts' estimates. US PPI also topped analysts' forecasts for August, coming in up 1.7%. The positive economic data helped to raise speculation that the US economy was on the path to recovery, boosting the Dollar.
The Euro made gains against the Pound while remaining relatively unchanged against the Dollar as investors risk appetite waned after a disappointing start for equities in Europe and the US. Germany, Europe's largest economy, posted a three-year high in September's investor sentiment, but still fell short of expectations. The ZEW economic sentiment index rose to 57.7, topping the 56.1 reading in August. Despite the lower-than-forecast report, the recovery scenario is still viewed as intact.
www.forbes.com
Data released 16th September 2009
UK: 09.30 Average Earnings (3 Months to July)
UK 09.30 Claimant Count (August)
ILO Unemployment (July)
EU 10.00 Final HICP (August)
US 13.30 CPI (August)
Ex Food & Energy
US 13.30 Current Accounts (Q2)
US 13.30 Real Earnings (August)
US 14.00 TICS Capital Inflows (July)
US 14.15 Capacity Utilisation (August)
US 14.15 Industrial Production (August)