GBP/USD Performance Chart (11/03/10 20:00)
| Daily % Chg |
0.41% |
|
3 months |
-7.51% |
| 1 week |
0.05% |
|
6 months |
-9.68% |
| 1 month |
-4.32% |
|
1 year |
9.36%
|
Details
| Prev close |
1.4978 |
|
|
52 week high |
1.7043 |
| Last trade |
1.504 |
|
|
52 week low |
1.3657
|
| High |
1.5065 |
|
|
Low |
1.4947 |
Bloomberg Median Forecasts
| Q1 2010 |
1.60 |
|
Q3 2010 |
1.57 |
| Q2 2010 |
1.54 |
|
Q4 2010 |
1.59 |
|
|
|
Commentary
Sterling rebounded against the US dollar today, after the BoE’s quarterly survey indicated that British consumers predict an inflation rate of 2.5% in a year’s time. This was higher than a previous estimate of 2.4% and the highest level since November 2008. ‘The inflation report is good for sterling as it suggests the Bank of England will hike sooner than expected,’ said Stuart Bennett of Credit Agricole Corporate and Investment Bank. ‘If inflation expectations are creeping up, this may be a catalyst for the market to give sterling a reprieve.’ [1] Sterling was also helped by remarks from Prime Minister Gordon Brown, who on Wednesday said he believed that Britain would maintain its top sovereign credit rating. He also announced a pay freeze for top civil servants to help curb the country’s record deficit. Anthony Grech, London
EUR/USD Performance Chart (11/03/10 20:00)
| Daily % Chg |
-0.02% |
|
3 months |
-6.58% |
| 1 week |
-0.54% |
|
6 months |
-6.36% |
| 1 month |
-1.04% |
|
1 year |
7.66% |
Details
| Prev close |
1.3657 |
|
|
52 week high |
1.5144 |
| Last trade |
1.3654 |
|
|
52 week low |
1.2579 |
| High |
1.3669 |
|
|
Low |
1.3621 |
Bloomberg Median Forecasts
| Q1 2010 |
1.39 |
|
Q3 2010 |
1.39 |
| Q2 2010 |
1.38 |
|
Q4 2010 |
1.38 |
|
|
|
Commentary
The euro edged higher against the US dollar this morning, predominantly on the back of receding eurozone deficit risks. Professor Martin Feldstein of Harvard University has told Bloomberg Television that the euro’s decline against the dollar this year was irrational and due to ‘panic selling’ stemming from the financial crisis in Greece. ‘The euro is weakening despite their better trade balance,’ Mr Feldstein told Bloomberg Television today. ‘This is a kind of an irrational or panic selling where people are just saying, I don’t know what is going on, I am just going to step to the sidelines and not leave money in euros’ Anthony Grech, London
AUD/USD Performance Chart (11/03/10 20:00)
| Daily % Chg |
-0.01% |
|
3 months |
0.30% |
| 1 week |
1.70% |
|
6 months |
5.95% |
| 1 month |
4.18% |
|
1 year |
41.72% |
Details
| Prev close |
0.9155 |
|
|
52 week high |
0.9406 |
| Last trade |
0.9154 |
|
|
52 week low |
0.6308 |
| High |
0.917 |
|
|
Low |
0.9114 |
Bloomberg Median Forecasts
| Q1 2010 |
0.9 |
|
Q3 2010 |
0.91 |
| Q2 2010 |
0.9 |
|
Q4 2010 |
0.91 |
|
|
|
Commentary
The Aussie dollar pared some of its earlier gains against the US dollar by late morning, after a government report showed a smaller-than-expected rise in Australian employment in February. According to official data, the number of Australians employed in February rose by 400, confounding analysts who were anticipating a 15,000 gain. The unemployment rate also increased to 5.3% from a revised 5.2%, suggesting that the RBA may decide to slow the pace of future rate hikes. A bigger-than-expected rise in Chinese consumer prices may have also weighed on the currency today, as it led investors to speculate that China, Australia’s biggest trading partner, may tighten monetary policy - potentially slowing domestic demand for commodities and negatively impacting Australian commodity exports to the country.Anthony Grech, London
Notes: [1] Bloomberg News (11 March 2010). Chart data sourced from Bloomberg. Bloomberg Median Forecasts are produced by Bloomberg by taking the median level from rates forecast by a number of contributors. These contributors consist of leading banks and security firms.
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