FX Market Update 7th October 2010
Today has been an extremely volatile day in the FX markets, Halifax House price data has shown this morning that house prices have dropped the most since at least 1983. The figures were expected to show a 0.2% decline and came out at -3.2%. This could be the initial signal that we are heading back into a double dip recession.
The market this morning expected the BoE to hold interest rates yet undertake a £50 billion quantitative easing program. The market responded to the announcement with retracement accross the board on the news that the BoE were adopting a ‘wait and see’ approach. This recovery was short lived and the pound still looks fragile coming in to the end of the day.
The stock markets have started to slow down today, both European and US stock markets are fairly flat on the day. Initial Jobless claims unexpectedly decreased on further speculation that the Fed will buy debt to fuel the economic recovery.
Gold has hit a fresh high at 1,364.60 as AngloGold Ashanti, the world’s third biggest gold miner, said on Thursday it had wound up its hedge book months ahead of its original plan. This alongside the Vietnamese Government stating that they would consider lifting a ban on gold imports, has seen prices rocket.
The Euro has appreciated to 1.40 against the Dollar, the highest it has been since February, as Trichet today in the ECB press conference expressed little willingness to undertake any quantitative easing.
Tomorrow the focus shifts to US Non Farms. Historically this is one of the most influential releases in The FX market. The GBP/USD up trend could be set to continue now that the 1.60 level has been breached.
Support and Resistance
GBP/USD – Support 1.5670 / Resistance 1.6015
GBP/EUR – Support 1.1296 / Resistance 1.2015
UK Economic Releases
UK – PPI (0930)
US – Non-Farms Payrolls (1330)
US – Wholesale Inventories 1500
Luke Zorab
Torfx Currency Dealer
(01736) 335285
Most Popular Content
- Pressure Mounts on the British Pound Following Autumn Budget
- Impact and Outlook for the U.S. Economy on Rate Cut
- Gold and Copper Markets Respond to Powell
- US Stock Market Faces Turbulence and Mixed Commodity Reactions
- Pound Holds Strong as Labour Wins with a Landslide
- Crude Oil Prices Rally as Inventory Declines and Rate Cut Hopes Emerge
- Strength in Gold and Copper Continues – But for How Long?
- Weak Payroll Data Sends Stocks Higher
Currency Articles - Nov 3, 2024 13:35 - 0 Comments
Pressure Mounts on the British Pound Following Autumn Budget
More In Currency Articles
Gold and Oil News - Aug 24, 2024 16:06 - 0 Comments
Gold and Copper Markets Respond to Powell
More In Gold and Oil News
- US Stock Market Faces Turbulence and Mixed Commodity Reactions
- Crude Oil Prices Rally as Inventory Declines and Rate Cut Hopes Emerge