Daily Market Report 01/11/12

Yesterday the sterling showed strength against almost all major counterparts as the sentiment within the UK, completely contradictory to the previous days’, showed signs of positivity.

Just two days ago the markets were acting very distrustful of the UK’s GDP figures, predicting a retreat during Q4 with a corresponding reaction to the currency. In a swing that perfectly illustrates the capricious nature of the markets, today investors took a positive outlook on what is now regarded as encouraging signs of recovery.

The refreshed optimism helped to dispel rumination on the subject of further stimulus. With higher growth prospects, the necessity of MPC action in the meeting next week is downgraded and as such prompted investors to recognise there is no imminent new flow of money, which would dilute the value of the pound.

Following yesterday’s the euro group meetings, Greece’s publicised struggle to meet troika criteria continues. A decision is now expected to be made on the 13th November, delaying the inevitable that will see the nation granted new liquidity from a third tranche of bailout funds.

As the US continues its clean up in the wake of hurricane Sandy, today sees a range of data released in the States as the economy starts to regain the global attention. Amongst the data released, manufacturing PMI, consumer confidence and unemployment claims.  

 

Key Announcements Today:
  • 08.00am – GBP – Nationwide HPI: slightly higher than expected at 0.6%
  • 10.30am – GBP – Manufacturing PMI: expected at 48.1, down from 48.3
  • 13.15pm – USD – Non-Farm Employment Change: expected to come in at 138k
  • 13.30pm – USD – Unemployment Claims: slight increase expected to 371k
  • 15.00pm – USD – CB Consumer Confidence: expected to increase to 72.4
  • 15.00pm – USD – ISM Manufacturing PMI: slight decrease to 51.2 expected

See previous Daily Market Reports