The US dollar declined today as the macroeconomic reports showed that the economy of the US improved with slower pace than was anticipated.
The Manufacturing Index of the Philadelphia Fed tumbled from 43.4 in March to 18.5 in April, while it was expected to go down to only 37.1. The index shows that the manufacturing still expands, but much slower. The unemployment claims decreased from 416,000 to 403,000 last week, while forecasts promised more optimistic value of 394,000.
There was some positive data too. The leading indicators rose 0.4 percent in March, following the 1.0 percent growth in February. Analysts expected an increase by 0.3 percent. Nevertheless, the unexpected slowdown of the manufacturing growth is a very troubling sign as this sector was of the strongest in the US economy.
EUR/USD was at 1.4556 as of 23:50 GMT today after it jumped from 1.4521 to 1.4647 earlier. GBP/USD went up from 1.6407 to 1.6519, while USD/JPY dropped from 82.55 to 81.90.
Thursday, April 21, 2011
Pound Strives Higher as UK Retail Sales Expand
The Great Britain pound advanced after the report showed that the retail sales in Britain unexpectedly rose last month, refueling talks about possible increase of the interest rates by the central bank.
The UK retail sales increased by 0.2 percent in March on month-on-month basis, following the drop by 0.9 percent in February. This report surprised analysts, who expected a decrease by 0.5 percent. The public net borrowing was £18.6 billion, in line with forecasts.
You-na Park, a currency strategist at Commerzbank AG, explained the potential changes of the interest rates:
We have speculation about a Bank of England rate hike this year, maybe in the middle of the year, but the Federal Reserve will probably keep its expansionary stance and we expect the first hike only in the beginning of 2012. The BOE will probably begin its tightening this year so the pound is able to gain against the dollar.
GBP/USD traded at 1.6515 as of 2:30 GMT today after it jumped from 1.6407 to 1.6520 yesterday. EUR/GBP traded near 0.8810, following the drop from 0.8848 to 0.8806 on the previous trading session.
The UK retail sales increased by 0.2 percent in March on month-on-month basis, following the drop by 0.9 percent in February. This report surprised analysts, who expected a decrease by 0.5 percent. The public net borrowing was £18.6 billion, in line with forecasts.
You-na Park, a currency strategist at Commerzbank AG, explained the potential changes of the interest rates:
We have speculation about a Bank of England rate hike this year, maybe in the middle of the year, but the Federal Reserve will probably keep its expansionary stance and we expect the first hike only in the beginning of 2012. The BOE will probably begin its tightening this year so the pound is able to gain against the dollar.
GBP/USD traded at 1.6515 as of 2:30 GMT today after it jumped from 1.6407 to 1.6520 yesterday. EUR/GBP traded near 0.8810, following the drop from 0.8848 to 0.8806 on the previous trading session.
Subscribe to:
Posts (Atom)
