Home » Currency Market Update 11/01/10

The Pound with poor unemployment data for the US on Friday we could have seen the pound make some gains against the Dollar, but continued mixed signs about the UK recovery put the dampers on any retracement against the Dollar or the Euro. It has now been reported that consumer confidence has slumped in the UK and we could see the pound struggle once again.

US Dollar has been range bound over the past two weeks, but with key US economic reports due this week we could finally see a breakout.  After Fridays disappointing and unexpected unemployment figures the US is likely to have a bumpy recovery from the recession. The government said employers cut a bigger than expected 85,000 jobs in December. Economists had expected only 8,000 job losses.

The Euro took advantage of the Dollar on Friday and has retraced to the mid 1.40's. The Euro also made gains against the pound and a push below 1.10 could be seen as a major move. With lots of Euro, UK and US data out over the next few days the markets could be very volatile.

IB rates at 9.05 am
GBP-EURO 1.11
GBP-USD 1.612
GBP-AUD 1.73
EURO-USD 1.45

Major data out today
CH Retail Sales
CA Housing starts
CA Building permits
JP Current Account