Daily Market Report 04/10/2013 The pound weakened across the board yesterday following lacklustre data throughout the weak causing investors to profit take on the pounds recent bout of strength. Research firm Markit revealed that services in the UK dropped marginally to 60.3 in September from 60.5 in August. Another report showed that house price inflation in the UK only rose by 0.3% instead of an expected 0.5%. Also in the week, we had construction and manufacturing data which also fell short of expectations, so unsurprisingly we are seeing investor’s book profits on their long sterling positions. The pound weakened across the board yesterday following lacklustre data throughout the weak causing investors to profit take on the pounds recent bout of strength. Research firm Markit revealed that services in the UK dropped marginally to 60.3 in September from 60.5 in August. Another report showed that house price inflation in the UK only rose by 0.3% instead of an expected 0.5%. Also in the week, we had construction and manufacturing data which also fell short of expectations, so unsurprisingly we are seeing investor’s book profits on their long sterling positions. The euro continued to be well supported following an aversion of Italy’s political crisis. Adding to this, euro zone services output hit at a 27 month high as new business picked up and the number of job cuts may be coming to a halt. It appears that the negative sentiment that has been surrounding the euro for the last two weeks has seemingly diminished and as a result we may see a continuation of the euro’s recent gain. The US dollar had a bit support yesterday as well as the number of people filing for jobless claims only rose by 1,000 instead of 6,000. In the absence of non-farm payroll figures today, due to the government shutdown, the market seemed to focus on these job figures to evaluate what the Fed may do regarding tapering of monetary stimulus. Services sector figures from the US fell to 54.4 in September from 58.6 in August. The next key event for the markets will of course be if whether lawmakers can raise the debt ceiling by October 17th. President Barack Obama still insists that the only way to negotiate on the budget and to bring the government shutdown to an end is for the House Republicans to raise the debit ceiling. Sources close to this subject have hinted that the Republicans may bring in a measure to do this as early as next week. With no job figures due for release today due to the government shutdown the economic calendar seems to be void of any major data today and as a result we expect to see a continuation of sterling weakness as a continuation of yesterday’s events. Key Announcements: N/A