Foreign Currency Exchange Report 15 September 2010

15 September 2010

 

Following on from Tuesday's inflation figures, today sees UK unemployment data released and as was the case with inflation, a small decline is expected.  Economists were wrong, however, with their predictions on inflation, which stubbornly still remains at 3.1% using the Consumer Prices Index measurement, and there is not much margin for error on unemployment either, with the claimant count tipped to dip by just 5,000 in August be ready for a choppy start to the day's trading.

 

The US Dollar exchange rate fell against most major currencies yesterday after better than expected data in the way of US retail sales and business inventories. This coupled with the stock markets pushing on up from Monday, and fears about slowing global economic growth have spurred interest in riskier, higher-yielding currencies. Speculation is also growing that the Federal Reserve will have to take further action such as quantitative easing, to boost the slowing US economy, leading in turn for traders to sell the Greenback further. The Euro rose above $1.30, the highest in a month, despite disappointing economic data from the Euro-zone.

 

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