Daily Market News 15 April 2011

 

Market Movers Yesterday

  • There was no date released from the UK yesterday, however sterling continues to trade comfortably above the 1.6300 level on the back of strong UK consumer confidence released late on Wednesday night.
  • The only piece of data from the euro zone was in the form of the ECB monthly report, the report added on from last week’s ECB rate increase hike and also spoke further about the central banks effort to combat inflation within the 17 nation euro zone. This had little effect towards the euro as euro/dollar was trading well into 1.4500 before the ECB rate hike and shows no signs of slowing down as further possible rate hikes look inevitable further down the curve.
  • Data from the United States came in the form of US PPI and Initial jobless claims, both of these figures came out lower and saw the US dollar lose against British pound ever so slightly and gave notion that we have returned to fundamentals at the moment. Being that we saw an increase of 30,000 jobs  claims from last month on the initial jobless claims number this would gave further notion the US jobs market still very  fragile and may be a reason behind the US being behind the curve on interest rates.

Market Movers Today

  • The UK again like on Thursday has no data being released, so movements in sterling should be limited however being a Friday we normally seeing position squaring ahead of the weekend so we could see some movement in sterling towards the end of trading in London.
  • We have a string of European data today from the euro zone firstly coming in the way of trade balance, where we are expected to see the gap narrow on last month’s figure; this could see the euro gain some support if these come in positively.
  • Following on from the trade balance is the European CPI, this is looking for an increase on last month’s figure and being that ECB has just risen rates they’ll be looking at this figure very closely given that the euro zone is trying to contain inflation. A higher number could see the euro gain against its major counterparts and give more fuel that ECB could look for further rates hikes.
  • In the United States we have a busy day in terms of data, three key pieces to be released all are looking to come in better than the month previous. CPI, industrial production and Michigan consumer sentiment will all be watched closely investors and may give an insight into the Fed’s already stern stance on fiscal and monetary policy.