Daily Market Report 02/11/12

Yesterday, despite some strong charges against each other, the euro, dollar and sterling all finished roughly where they started the day.

Sterling began the day on top as impressive housing data complimented the recent encouraging signs of a UK economic recovery. The news, coupled with a report revising upwards growth prospects, led the pound to swiftly strengthen against both the euro and dollar, before later receding.

The euro’s attention has fully shifted from Spanish bailout woes to the more pressing concern of Greece. It seems that the release of further bailout funds is the only foreseeable outcome, yet details on how the nation will achieve this are still vague and causing uncertainty.

Positive employment data yesterday produced surprise reactionary movements in the greenback. Immediately following the release, the dollar strengthened as the improving economy led investors to believe further signs of momentum may truncate the QE3 programme, whist later risk appetite increased causing a rally in the euro.

Today several European nations return from respective national holidays, as manufacturing data is released in France and Spain whilst construction data is to be announced in the UK as the nation hopes for further sustained bouts of strength.

 

Key Announcements Today:

  • 08.15am – EUR – Spanish Manufacturing PMI: contraction to 43.5
  • 08.45am – EUR – Italian Manufacturing PMI: contraction to 45.5
  • 09.30am – EUR – Construction PMI: extended contraction expected at 49.1
  • 12.30pm – USD – Non-Farm Employment Change: expected to increase by 9k
  • 12.30pm – USD – Unemployment Rate: increase to 7.9% from 7.8% expected

See previous Daily Market Reports