IFX Market Report

Submitted by qrops on Fri, 05/Feb/2010

IN THE UK

  • GBP/USD reaches 8 ½ month low at $1.5655
  • BOE keeps interest rates on hold
  • BOE keep Quantitative Easing on hold, with view for further cash injections if necessary.
  • PPI Input expected at 0.7%m/m (0.1% previously)
  • PPI Output expected at 0.3%m/m (0.5% previously)

 

IN THE US

  • Further risk aversion returning to the market sees the Dollar reach 7month highs against the basket of currencies.
  • Non-Farm Employment Change at 13:30 today expected at 10K (-85K previously).
  • Unemployment Rate expected at 10% (10% previously)

 

IN THE EU

  • Traders concerns over poor EU countries fiscal health
  • ECB keeps interest rates on hold
  • Trichets tries to smooth out concerns over Greece and Portugal deficit figure of 6%
  • EUR/USD reaches 8½ month lows at $1.3650

 

OVERVIEW

This morning we have seen rising risk aversion return to the market on concerns over the fiscal problems in some Eurozone countries (despite Trichets comments yesterday), lifting the appeal of safe heaven currencies such as the US Dollar and Japanese Yen. This has allowed the US Dollar to see 7 month highs against the basket of currencies, and next week should prove interesting for all.

 

At 09.30hrs this morning the market was at GBP/EUR €1.1450; GBP/USD $1.5690; GBP/CAD $1.6840; GBP/CHF 1.6862; GBP/ZAR 12.06; GBP/JPY 144.70; EUR/USD 1.3710.

 

Key levels of Support and Resistance today are GBP/USD 1.5604 - 1.5780; EUR/USD 1.3630 - 1.3770; GBP/EUR 1.1390 - 1.1516

 

 

 
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