Phil Bennetts

Currency Maerket Update 14/04/10



Posted: Tuesday, April 13, 2010

by Phil Bennetts
Sat WorldWide

The Pound – The U.K. trade balanced deficit in February narrowed to 2.06 billion pounds from 3.90 billion as exports surged to a seven year high. Chemicals and oil where the most sought after items which helped close the visible trade-gap to 6.17 billion pounds from 8.06 billion pounds. Also a report by the BRC (British Retail Consortium) showed consumer spending increased by 6.6% in March after expanding 4.5% in the previous month, while store sales rose 4.4% following the 2.2% rise in February. The Royal Institution of Chartered Surveyors house price balance index gained 9% in March after rising a revised 18% during the month prior, while a separate report by the UK Department for Communities and Local Government showed home prices increased at an annualized pace of 7.4% in February after rising 6.2% during the first month of 2010. Moreover, the visible trade deficit narrowed to GBP 6.179B from a revised GBP 8.066B in January, led by a 9.5% jump in exports, and marked the lowest trade gap since June 2006. 

Meanwhile a report by Bloomberg today claims that Campaign promises by Gordon Brown and David Cameron to tackle a record budget deficit may be enough to spare the U.K. from the market rout that battered Greece, say economists at banks including UBS AG and JPMorgan Chase & Co. While Brown's Labour Party and the opposition Conservatives have presented platforms this week that commit to narrowing the shortfall, neither has detailed how they would do it. What's more, polls indicate neither will win a majority in the May 6 election, leading to a so-called hung Parliament.

With a lot of US data today we could see some movement on GBP/USD

Major Data out Today
US CPI
US CPI ex food and energy
US Retail Sales
US Retail Sales Ex Autos
UK Nationwide Consumer Confidence

Live IB rates at 5.31 am UK
GBP – EURO 1.127
GBP - USD 1.54
GBP- AUD 1.653
EURO - USD 1.365

Adam Cotton



Business Foreign Exchange



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