Daily Forex Commentary

Open the calendar
)

Friday, 27 January 2012 - Market Commentary

By Alex Hartley


:: United States Dollar: A quieter day’s trade yesterday saw cable move within a smaller range. Sterling should have started on the back foot Thursday morning as UK retail sales suffered its biggest fall in three years. It suggests that shoppers firmly shut their wallets after the Boxing Day sales. The FED euphoria from Wednesdays release kept Sterling sitting high against the US Dollar and the currency pair peered over 1.5720. An increase in US Durable goods orders helped keep the euphoria going in the US session as a 3 % climb surpassed the predicted 2.1 %. The positivity dwindled off as the US session continued with the dampener coming from unemployment and new home figures. Both were disappointing releases albeit they didn't come in far off their forecast figures. This has seen cable trade within a 50 pip range yesterday with a Thursday high of 1.5728 reached. GBP/USD sits in the mid of this range at 1.5695 this morning.

- We expect a range today in the GBP/USD rate of 1.5620 to 1.5760

:: Euro: The single currency comes off recent gains against the USD and GBP. Talks between Greece and its private creditors progressed on Thursday as they continue to find a resolution in restructuring the debt. These talks continue today with the aim of sealing an agreement within a few days. Despite the chatter from Greece breeding some relief, it now seems Portugal is joining Greece in the EZ and market concerns. Portuguese 5 and 10 year government bond yields came under pressure yesterday after hitting Euro-era highs and the nation possibly look set to follow Greece in requiring another bailout or debt restructuring. The roll on effect from Greece to Portugal only highlights whether Italy will fall back into the same situation. Euro therefore has fallen of the FED gains from Wednesday / early Thursday and sits at 1.3112 versus the Greenback and 1.1972 versus the Pound.

- We expect a range today in the GBP/EUR rate of 1.1910 to 1.2080

:: Aussie and Kiwi Dollars: The Aussie and Kiwi remain strong and have maintained their recent gains. The antipodean currencies are off the highs versus the Greenback after the latest news from Europe dampening demand for risk, but the downward movement for the currency pairings has been corrected overnight after the NZ trade balance release. Record-high value for dairy increased exports by 4.3 % helping the surplus reach 338 million dollars in December 2011. This has seen the NZD push higher and opens at 0.8235 versus the USD. AUD/USD currently sits at 1.0641. Sterling see no real change in its stance against the Aussie and Kiwi and open at 1.4752 and 1.9063 for this morning.

- We expect a range today in the GBP/AUD rate of 1.4680 to 1.4850

- We expect a range today in the GBP/NZD rate of 1.8990 to 1.9190

:: Data Releases:

  • AUD: No data due for release today
  • EUR: M3 Money Supply y/y, ECB President Draghi Speaks
  • GBP: No data due for release today
  • NZD: No data due for release today
  • USD: Advance GDP q/q, Advance GDP Price Index q/q, Revised UoM Consumer Sentiment

    If you want instant updates on movements in the FX market and fast access to the UKForex daily commentary, follow us on twitter at http://twitter.com/ukforex or @ukforex

Back to top

Open the calendar
)

Currency Converter

Rate: 1.5796
=
Rate: 0.6331
=
Go
See My FX Dashboard for more info

Register Free

Registration is quick and easy. Access live customer rates, free tools and make international payments.

Register today
Already registered? Login
Get our free commentary
Stay on top of the news with updates from our expert dealers on the latest currency movements. You can unsubscribe any time and your email address is safe – see our >Privacy Policy.


Keep me up to date:
Get free rate alerts
Choose ccy pair and enter the exchange rate. An alert will be triggered when the exchange rate is reached and an email will be sent to you. You can unsubscribe any time and your email address is safe – see our Privacy Policy.
select
/
 


Mobile Forex trading tools

Make money transfers or currency conversions on the go via our mobile site, iPhone or Android apps. Learn more here

Banners

Sitemap

You're in good hands:

IMPORTANT: Use of this website is subject to the Website Terms. Use of the Services of the UKForex Limited is subject to the Client Agreement. Nothing on this website constitutes or should be construed as financial advice. This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites.

DISCLAIMER: UKForex makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this web site. Read full disclaimer.

UKForex provides international money transfer services to private clients and business customers. Use our free currency converter, exchange rate charts, economic calendar, in-depth currency news and updates and benefit from competitive exchange rates and outstanding customer service.

UKForex is authorised and regulated by the Financial Services Authority (FRN: 521566) for the provision of payment services.

Money Laundering Regulation Number (MSB): 12219180. Issued by HM Revenue & Customs (HMRC)
Read our Money Laundering Statement