Daily Market Report 27/08/15

GBP
Yesterday afternoon we saw the pound gain ground on the euro after around
0.6% a U.K mortgage approvals showed an increase in July to
their highest level in 17 months.  Banks approved 46,033 mortgages for
house purchases; this is the highest number we have seen since February 2014.
That was up from 44,802 in June and up 11 percent from 12 months ago.

USD

GBP
Yesterday afternoon we saw the pound gain ground on the euro after around
0.6% a U.K mortgage approvals showed an increase in July to
their highest level in 17 months.  Banks approved 46,033 mortgages for
house purchases; this is the highest number we have seen since February 2014.
That was up from 44,802 in June and up 11 percent from 12 months ago.

USD
U.S. durable goods orders rose unexpectedly in July, with core orders
topping forecasts rising 2.0% where the figure was widely expected to
shrink to -0.4% This helped boost optimism over the health of the economy
and supporting the case for a U.S. interest rate hike later this year. The
positive data helped push the dollar higher against other major currencies
yesterday and added optimism over the strength of the economy.

Yesterday New York Fed President William Dudley bolstered expectations of a
delay in the Fed’s rate increase. He said a September rate hike seemed less
compelling than just a few weeks ago, although he added that
“short-term” market volatility did not have significant implications
for the U.S. recovery.

EUR
We saw some weakness in the Euro yesterday in the wake of comments from the
ECB’s executive board who suggested downside risks are increasing to the
ECB’s inflation targets. The euro exchange rate complex fell back
following the sharp rise seen at the start of the week however it has been
reported that many are starting to forecast a stronger Euro ahead on the back
of the recent positivity.

We have seen a lot of turmoil in the market this week and the effects can be
particularly be bad for Greece. The country is decimated by political
uncertainty and much-publicized economic weakness. It is likely to be even
further wounded by the volatility on global markets. UBS analysts recently
downgraded their forecasts for Greece’s growth in gross domestic product to
-1.6 percent this year, and -1.1 percent in 2016.

Key Announcements
USD: 13:30 – Initial Jobless claims expected fall to 274K from 277K
USD: 13:30 – Gross Domestic Product Price Index (Q2) Expected to stay the same
at 2%.