UK consumer confidence up for 3rd straight month
Wednesday, 8 July 2009
FX Market Overview
The conspiracy theorists still say Michael Jackson isn’t dead, just waiting for a chance to cause another stir. That didn’t stop attempts by members of his family and friends from launching or re-launching their careers at his memorial. Nor did it stop the sale of Michael Jackson T shirts and Michael Jackson Soda Pop. Yesterday’s other and more important news, in my opinion, was the unveiling of a memorial to the 52 people who died in the London bombings on 7th July 2005. What a dignified contrast to the circus in LA.
Yesterday was also another day of Sterling weakness. That weakness stems more from apathy towards the Pound than any particular animosity. Yesterday’s UK consumer confidence data was actually quite optimistic but largely ignored. However, the US Dollar is being seen in a positive light by investors seeking safety for their cash and there is an overwhelming feeling that the economic recovery, when it comes, will start in America and filter through other economies through demand for consumer goods. The Japanese Yen is also strengthening as investors slink back home while risk has once again become a 4 letter word.
Today is a big day for big news; the Ashes series starts in Wales, new regulations will be announced to control UK banks and the G8 meeting gets underway but not much will come of it. However, Mr Berlusconi has moved the venue to L'Aquila, the site of the devastating earthquake earlier in the year and a town which is still feeling aftershocks. Shaken; not stirred Mr Brown.
In economic data terms, this is another quiet one. We do get German industrial production data which is always a worthwhile bellwether for the value of the Euro and we will see US consumer credit data later along with a speech from the President of the Chicago Federal Reserve Bank. There is little more to report other than the fact that the Pound has gone from testing the top of its recent ranges against most currencies right down to testing the very bottom of those ranges this morning. Sterling buyers should be delighted after seeing their funds shrink in recent weeks but it is probably not a time to be over-ambitious about just how weak the Pound will become. We have seen the support that Sterling attracts on dips on numerous occasions in recent weeks.
And finally, students in Austria are being given the option to phone a friend during exams in order to boost their results. It’s a ridiculous notion when exams are meant to test you and not your entourage but given the option, I would have Steven Fry and Steven Hawking on speed dial. I don’t know either of them but they would be handy to have on standby. Who would you choose?
Yesterday was also another day of Sterling weakness. That weakness stems more from apathy towards the Pound than any particular animosity. Yesterday’s UK consumer confidence data was actually quite optimistic but largely ignored. However, the US Dollar is being seen in a positive light by investors seeking safety for their cash and there is an overwhelming feeling that the economic recovery, when it comes, will start in America and filter through other economies through demand for consumer goods. The Japanese Yen is also strengthening as investors slink back home while risk has once again become a 4 letter word.
Today is a big day for big news; the Ashes series starts in Wales, new regulations will be announced to control UK banks and the G8 meeting gets underway but not much will come of it. However, Mr Berlusconi has moved the venue to L'Aquila, the site of the devastating earthquake earlier in the year and a town which is still feeling aftershocks. Shaken; not stirred Mr Brown.
In economic data terms, this is another quiet one. We do get German industrial production data which is always a worthwhile bellwether for the value of the Euro and we will see US consumer credit data later along with a speech from the President of the Chicago Federal Reserve Bank. There is little more to report other than the fact that the Pound has gone from testing the top of its recent ranges against most currencies right down to testing the very bottom of those ranges this morning. Sterling buyers should be delighted after seeing their funds shrink in recent weeks but it is probably not a time to be over-ambitious about just how weak the Pound will become. We have seen the support that Sterling attracts on dips on numerous occasions in recent weeks.
And finally, students in Austria are being given the option to phone a friend during exams in order to boost their results. It’s a ridiculous notion when exams are meant to test you and not your entourage but given the option, I would have Steven Fry and Steven Hawking on speed dial. I don’t know either of them but they would be handy to have on standby. Who would you choose?
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