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HISTORICAL DETAILS
% Change
1 Wk -1.23%
1 Month -2.25%
3 Months -2.48%
6 Months 1.71%
1 Year 5.32%
52 WEEK
High 1.6747
Low 1.4949
BLOOMBERG MEDIAN FORECASTS
Q2 2011 1.63
Q3 2011 1.62
Q4 2011 1.63
Q1 2012 1.62
DAILY DETAIL
Risk assets took a belting overnight, as investors scurried back towards safe havens and the US dollar amid fears that the European debt crisis is spreading to Italy. The euro plunged and dragged sterling along for the ride. After opening the new week at 1.6012, it fell for most of the session, bottoming out at 1.5881 before rallying slightly. A bleak assessment of the UK economy from the British Chamber of Commerce did little to help confidence, and neither did a survey from BDO, showing a fall in optimism among manufacturers. All in all, price action continues to confirm the picture of doom and gloom for the UK economy, with the Bank of England likely to be on hold until next year. Looking ahead to tonight’s session, there is quite a bit on the economic data front. MPC Member Bean is due to speak at 5.30pm (Melbourne time) ahead of the 6.30pm (Melbourne time) release of consumer price index and retail price index data. As it stands, the market is expecting a reading of 4.5% for CPI, in-line with last month’s figure, and 5.2% for the retail component. Any unexpected strength in this number will undoubtedly get the hawks speaking, although it’s unlikely to sway the Bank of England’s dovish view near term. Any weaker-than-expected releases could see further selling pressure heaped on cable. Ben Potter, Australia
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