Daily Market News 13 May 2011

Yesterday’s Market Movers

  • There was no data from the Euro zone yesterday.
  • US retail sales and PPI came out positive yesterday showing a small improvement from previous. This actually had little effect on the market as the main reason for the USD strengthening was due to speculation the interest rates would remain on hold in the UK.
  • In the UK we had the NIESR GDP Estimate which showed a small decline in the last quarter which is leading to speculation that interest rates will stay on hold.

Today’s Market Movers

  • There is no data out in the UK today.
  • In the US we have CPI figures out. These are expected up across the board which could lead to speculation that there could be a rate rise in the US.
  • In the Euro zone today we have a busy day: It starts with German GDP which has already come out better than expected and we have seen the Euro already strengthen.
  • European GDP in general is expected to come out slightly better than previous which could spark a reversal from the recent losses that we have seen. Trichet will be speaking an hour prior to this, and as we all know he likes to talk up the Euro so this could well add to Euro strength today.

GBP/EUR

GBP/USD

EUR/USD