Daily Market News 20 April 2011

Daily Market News 20 April 2011

 

Yesterday’s Market Movers

  • With no data out in the UK yesterday, the first piece of data came yesterday morning in the form of the German PMI. This came out better in the manufacturing sector and worse in the Services Sector. Along with the EU PMI coming out better than expected we saw the EUR strengthen slightly with GBP/EUR moving back down from the 1.14 levels into the 1.13 levels.
  • We saw risk appetite cause the USD to weaken yesterday as both the housing starts and building permits in the US come out better than expected and as we know, the housing market is a key factor in the US economy.

Today’s Market Movers

  • The first potential market mover is the German PPI which is expected to come out better leaving open the possibility of further Euro strength. This could be diluted however by continuing talk of the weaker elements in the Euro zone such as the restructuring of the Greek debt.
  • The Bank of England Minutes are due out tomorrow, the main focus of which is likely to be on the voting patterns concerning the interest rate decision. We could see some strength for the GBP if there is yet more movement towards the idea of a rate hike.
  • Home sales in the US are expected considerably better than previous which could see some key levels broken in either direction dependant on whether the market returns to fundamentals, causing the USD to strengthen, or remains on the path of risk appetite causing a weaker USD.

 Currencies 

 High 

 Low 

 Support 

 Resistance

 GBP/EUR

1.1434 

 1.1368

1.1280

1.1410

 GBP/USD

 1.6337

 1.6228

 1.6300

1.6430

 EUR/USD

 1.4337

 1.4204

 1.4350

1.4520