Home » Currency Market Update 15/01/10

The Pound made gains against the Dollar and the Euro yesterday In the absence of any local data releases, and the U.K. stocks gained for the first time in three days. Also to note the bank of England Monetary Policy Committee member, Kate Barker, has said that she doesn't expect the U.K. economy to gather momentum in the first six months of 2010. In an interview published yesterday she also stated that UK output probably started to grow in the final quarter of 2009.
The BOE is currently on track to complete a targeted GBP200 billion of quantitative-easing asset purchases by its meeting in early February. While economists won't rule out the possibility of further stimulus, many think that the MPC will refrain from additional action next month.

The Dollar declined against the Pound while making gains against the Euro following U.S. retail sales unexpectedly fell in December from the previous month, signalling restraint by consumers during the holidays as the economy wrestles with high unemployment. While Retail sales declined a monthly 0.3% in December which was worse than expected the Commerce Department stated on Thursday.

The Euro declined against the Dollar and the Pound following The European Central Bank keeping interest rates on hold at a record low of 1% for the eighth consecutive month as expected. However there was some positive data yesterday as industrial production increased twice as quickly as expected.

Data released 15th January
EU      10.00 Final HICP (December)
US      13.30 CPI (December)
Ex Food & Energy
US      13.30 NY Fed - Empire State Manuf. Index (Jan)
US      14.15 Industrial Production (December)
Capacity Utilisation
US      14.55 Michigan Sentiment (January - Prelim)

Live IB Rates 9.38am
GBP-EURO 1.136
GBP-USD 1.631
GBP-AUD 1.758
EURO-USD 1.441

 

Phil Bennetts