Daily Market News 29 Mar 2011

 

Yesterday’s Market Movers

  • There was no data out from the UK yesterday, however many traders were citing 1.5985 as a good level to start buying sterling with banks taking large buy orders at these levels.
  • The only piece of data from the United States on Monday was in the form of pending home sales. These figures were released better than expected at 2.1% from a consensus of 0.9% the US dollar remained unchanged this gave the notion that possible risk appetite had entered the market.

 

Today's Market Movers

  • There are only two pieces from the euro zone today, firstly German CPI which is looking to come in unchanged on last month’s figure. Also from the euro zone is the German GFK Survey which like the German CPI is looking to come in lower, unless there’s a big number released the euro should remain flat.
  • There is a string of data from the UK today firstly coming in the way GDP; this is looking to come in lower than the month prior at 1.5%. This figure was re- adjusted by the chancellor in his budget speech last Wednesday and is showing the UK economy isn’t growing as quickly as the government had hoped for. This figure will be very sensitive towards the movement of sterling as many investors will be watching closely to see if the UK is recovering after last year’s slow down.
  • Following up from the GDP figure are UK mortgage Approvals which are looking to come in better than expected. Also being released shortly after are Net Lending to individuals which are looking for a slight drop, this is showing that individuals are still not spending as much as before with last week’s lower retail sales coming in lower backing up these lower numbers.
  • The main data from the United States comes in the form of consumer confidence; this is looking to come in lower than the previous month. This could see the US dollar weaken, with possible risk appetite entering the market with the recovery in the US still faltering and chances of an interest rate this year becoming less likely.