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09 Feb 2015
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GBP steady ahead of UK manufacturing data

United States Dollar: It was a fairly quiet day in FX markets on Monday. There weren’t any significant economic data releases and investors took somewhat of a breather following the post non-farm payrolls volatility on Friday. There are still concerns for what lies ahead for Greece and its relationship with Europe and these headlines will continue to dominate the financial headlines, but it didn’t really upset currency markets yesterday. GBP/USD fell to a low of 1.5203 but has made a gentle recovery since to open this morning’s session at 1.5245. UK manufacturing production data is due this morning. PMIs all beat market forecasts last week so the data may well be positive.

We expect a range today in the GBP/USD rate of 1.5200 to 1.5300

Euro: EUR/USD slipped to a low of 1.1270 yesterday afternoon, but like GBP/USD, it has recovered through Asia and trades at 1.1320 currently. As mentioned above, Greece remains in the headlines and the news will likely continue to weigh on the single currency in the near-term. The Greek government is now considering asking the eurogroup for a bridging loan between now and September. In other news, the Greek defence minister piped up yesterday and said that if Greece doesn’t get the deal it wants from Germany, it will go to “Plan B” and ask for funding from the likes of the US, Russia or China. The plot will no doubt thicken today but EUR/USD and GBP/EUR are relatively steady with GBP/EUR currently trading at 1.3460.

We expect a range today in the GBP/EUR rate of 1.3400 to 1.3500

Aussie and Kiwi Dollars: AUD/USD and NZD/USD have both been steady overnight and open this morning in London at .7805 and .7425 respectively. Weak NAB Business Confidence from Australia didn’t do the aussie dollar that much good to start the day in Sydney but things then started looking a bit more positive come the release of weaker than expected Chinese inflation data overnight. At 0.8% vs. expectations for 1.1% the CPI y/y figure will only serve to underline expectations for the PBOC to begin some form of monetary policy easing. GBP/AUD and GBP/NZD have both been pretty quiet too and trade at 1.9540 and 2.0525 currently.

We expect a range today in the GBP/AUD rate of 1.9450 to 1.9635

We expect a range today in the GBP/NZD rate of 2.0420 to 2.0650

Data Releases

AUD: Westpac Consumer Sentiment, Home Loans m/m

EUR: Italian Industrial Production m/m

GBP: Manufacturing Production m/m, Industrial Production m/m, NIESR GDP Estimate

NZD: No data

USD: NFIB Small Business Index, JOLTS Job Openings, IBD/TIPP Economic Optimism, Wholesale Inventories m/m

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

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09 Feb 2015
Share

GBP steady ahead of UK manufacturing data

United States Dollar: It was a fairly quiet day in FX markets on Monday. There weren’t any significant economic data releases and investors took somewhat of a breather following the post non-farm payrolls volatility on Friday. There are still concerns for what lies ahead for Greece and its relationship with Europe and these headlines will continue to dominate the financial headlines, but it didn’t really upset currency markets yesterday. GBP/USD fell to a low of 1.5203 but has made a gentle recovery since to open this morning’s session at 1.5245. UK manufacturing production data is due this morning. PMIs all beat market forecasts last week so the data may well be positive.

We expect a range today in the GBP/USD rate of 1.5200 to 1.5300

Euro: EUR/USD slipped to a low of 1.1270 yesterday afternoon, but like GBP/USD, it has recovered through Asia and trades at 1.1320 currently. As mentioned above, Greece remains in the headlines and the news will likely continue to weigh on the single currency in the near-term. The Greek government is now considering asking the eurogroup for a bridging loan between now and September. In other news, the Greek defence minister piped up yesterday and said that if Greece doesn’t get the deal it wants from Germany, it will go to “Plan B” and ask for funding from the likes of the US, Russia or China. The plot will no doubt thicken today but EUR/USD and GBP/EUR are relatively steady with GBP/EUR currently trading at 1.3460.

We expect a range today in the GBP/EUR rate of 1.3400 to 1.3500

Aussie and Kiwi Dollars: AUD/USD and NZD/USD have both been steady overnight and open this morning in London at .7805 and .7425 respectively. Weak NAB Business Confidence from Australia didn’t do the aussie dollar that much good to start the day in Sydney but things then started looking a bit more positive come the release of weaker than expected Chinese inflation data overnight. At 0.8% vs. expectations for 1.1% the CPI y/y figure will only serve to underline expectations for the PBOC to begin some form of monetary policy easing. GBP/AUD and GBP/NZD have both been pretty quiet too and trade at 1.9540 and 2.0525 currently.

We expect a range today in the GBP/AUD rate of 1.9450 to 1.9635

We expect a range today in the GBP/NZD rate of 2.0420 to 2.0650

Data Releases

AUD: Westpac Consumer Sentiment, Home Loans m/m

EUR: Italian Industrial Production m/m

GBP: Manufacturing Production m/m, Industrial Production m/m, NIESR GDP Estimate

NZD: No data

USD: NFIB Small Business Index, JOLTS Job Openings, IBD/TIPP Economic Optimism, Wholesale Inventories m/m

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

Learn more about