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