IFX Market Report

IN THE UK:

• Sterling retraces from 5months high to the weeks low of $1.6127.
• Public Sector Borrowing reported at £15.7billion – record high for December and the financial year.
• Preliminary M4 Money Supply figures fell an unexpected -1.1%m/m (expected 1.0%m/m).
• BoE governor Mervyn King describes the UK fiscal health at “undesirably low”.

IN THE EU:

• Continuing concerns over Greece’s continuing rising debt, weakens the Euro against the board of currencies.
• EUR/USD tested the key €1.40 level three times but retraced to close at €1.4095
• German Flash Manufacturing PMI reported at 53.4
• German Flash Services PMI reported at 51.2

IN THE US:

• Unemployment claims were up at 482K from 446K (expected 441K) 
• Philly Fed Manufacturing Index fell short at 15.2 from 22.5 previously.
• CB Leading Index came in positive at 1.1%m/m from 1.0% last month (expected 0.7%)
• Stocks fall as President Obama plans to restrict US banks from any further risky investment.

At 09.30am this morning the market were at GBP/USD $1.6255, GBP/EUR €1.15, and USD/EUR $1.4136.

The key levels of support and resistance are GBP/USD are $1.6150 – $1.6300), EUR/USD $1.4000 – $1.4220, and GBP/EUR a broad €1.1450 – €1.16