Daily Market News12 May 2011

 

Yesterday’s Market Movers

  • The inflation report came out for the UK yesterday morning and saw positive movements for the GBP against both the USD and the EUR due to the notion that inflation was increasing and positive comments from Mervin King in his speech following the report.
  • There was no data in the Euro zone yesterday however unrest in Greece continued with eventual rioting in the streets which served to weaken the Euro slightly as EUR/USD dropped below the 1.43 mark, with GBP/EUR breaching the resistance posed by the 1.15 level.
  • US trade balance came out worse than consensus yesterday which did not have too much effect on the markets.

Today’s Market Movers

  • Today we have the Industrial production figure for the UK which could add to growing sterling strength as it is expected to come out considerably better than previous, in-line with the inflationary talks of yesterday.
  • The ECB monthly report is due today which gives information on all of the big issues in the Euro zone, thus, dependant on what is said, this has the power to move the market in either direction!
  • In the US there is a mixed bag of data with PPI expected worse than previous month on month despite the consensus that this will have improved year on year.
  • The retail sales are expected better than previous in the US today so there is the chance that all of this data could cancel each other out, leaving little effect on the market.

GBP/EUR

GBP/USD

EUR/USD