Market Report

Good morning all, the Dollar is still showing signs of weakness after the Federal Bank of New York chairman Mr Bernanke seemed to say that we may be at the end of the current cycle of interest hikes. The Dollar has fallen by over three hundred points in the last few days. The Dollar opened today at 1.8482 but quickly fell to a low of 1.8555 we may see the rate reach 1.86 before to long.

Sterling once again is showing some good strength after yesterday strong Retail sales numbers. This morning saw the Sterling rate against the Euro open at 1.4622. With inflation firmly back on the agenda there may be a little more to go.

Have a good weekend.

VC

Good morning all, yesterday saw the release of the Consumer price index figures from the United States. These figures came out as expected the real surprise came when the Federal Bank of New York chairman Mr Bernanke spoke later in the day, all expectations had been for another interest rate rise soon, but the wording of his speech seemed to indicate some caution as a result the Dollar weakened significantly. The Dollar opened yesterday morning at 1.8252 then tumbled throughout the day to a low of 1.8441. Today sees the Dollar at 1.8471 and in my opinion has more to go.

Today sees the release of the UK retail sales figures these may be significant as they may have been affected by the world cup. There appears to be new strength in Sterling at the moment because of the prospect of an interest rate rise soon. Sterling against the Euro at present stands at 1.4649, a very good time to buy those Euros in my opinion.

Have a good day.

VC

Despite continued violence in the Middle East, Oil prices have dropped overnight to $73 which hopefully means petrol prices can come down a little from the £1 a litre we are currently seeing!

The US Producers Price Index (PPI) was released yesterday, and came out as expected so did not effect the markets. GBP/USD started and finshed trading between 1.82 and 1.8270.

Today we see the US Consumer Price Index (CPI) being released at 1.30 and at 3.00 the FED Chairman Bernanke gives his semi annual report on the state of the US economy and FED policy. We are expecting the CPI figure to come out at 0.2%, which if happens will keep the market quiet until Bernanke talks. If we see the CPI figure at 0.3% (there is a slight chance of this) then you will see the USD being bought on the assumption that Bernanke will indicate another increase in interest rates.

We are expecting Bernanke to indicate interest price hikes and we would predict that GBP/USD will finish the day trading around 1.8170.

GBP/EUR jumped yesterday afternoon from 1.4550 to 1.4620. This was after the UK CPI was released and came out at 2.5% against the predicted 2.2%. This sparked worries that UK Interest rates will now be put up by 0.25% and hence saw the exchange rate move.

So a very busy day in store, and listen out at 1.30 for the important CPI figures from the US.

DE

Good morning all yesterday saw some big moves for the Dollar which gained ground against nearly all currencies. The Dollar rate against Sterling saw a move of over 200pts at one stage in favour of the Dollar. Early yesterday the Dollar reached a low of 1.8389 before climbing to a recent high of 1.8175. This mornings opening rate was 1.8202. This movement seems as a direct result of the conflict in the Middle East and may now have been written into the rate. Unless there is a dramatic escalation we may have seen the high for the Dollar. Today sees the release of the Producer Price Index from the United States this should not have any real effect on the Dollar as all eyes will be on tomorrow's release of the Consumer Price Index.

Sterling has hardly moved over the last twenty four hours opening today at 1.4534 against the Euro which is down a mere seven points from yesterdays open. Today sees the release of the Consumer Price Index from the UK; expectations are that the figure will be a slightly positive one for Sterling. However should this optimism be misplaced we could see Sterling start to come under some pressure.

Have a nice day.

VC

Good morning all. Another weekend of prolonged violence in the Middle East is not doing anything to help the price of oil.

We saw some economic data released from the States on Friday which only affected GBP/USD moving it from 1.8440 to 1.8340. We open trading this morning at 1.8370.

GBP/EUR has not moved much since last week and has opened trading at 1.4520. It is commonly thought that if you could buy Euros at 1.4550 then take it with both hands!

There is very little in the way of economic data being released today, but listen out for any news from the G8 Summit or the Middle East.

Have a nice day.

DE