SereneLoi.com

Overnight data released in China showed better than expected growth in factory output, and consumer inflation rose to a sixteen month high. CPI rose to 2.7% in February. This has raised concerns that the Chinese central bank may increase monetary tightening, and possibly raise interest rates. There is a school of thought that gradual tightening [...]

Sterling was relatively stable in overnight trading, ahead of today’s Industrial Production figures. The UK’s currency has been hit hard of late, with poor RICS data yesterday compounding recent losses. Negative comments coming from Moody’s has put Sterling in the spotlight, so eyes will now turn to today’s data to see for signs of like [...]

Sterling continued to trade lower following the release of the latest RICS data and poor retail sales numbers. Only 17% of respondents reported rising house prices, the smallest percentage in six months, and well below expectations of 30%. UK retail sales numbers rose 2.2% in February, highlighting an air of caution amongst consumers. The third [...]

Following Fridays impressive non-farm payroll figures, risk appetite appears to have returned, with traders fleeing the greenback in favour of higher yielding currencies. The US Dollar slipped back, and the Euro has rallied as signs of a global econo0mic recovery improved. Comments by French President Sarkozy helped move the Euro higher, as he vowed to [...]

Currency markets pretty much treaded water ahead of today’s non-farm payroll release, and this was compounded with mixed economic data being released in the US. Pending home sales fell for the first time in 2010, however the weekly initial jobless claims fell last week. These mixed signals have meant that money might be staying on [...]

The Euro will be in focus once again this afternoon, as the ECB are scheduled to release the Eurozone interest rate decision at 1245GMT. Whilst analyst consensus is that rates will remain on hold, traders will be looking towards the comments from Jean Claude Trichet about the parlous state of the Greek economy, and how [...]

The Euro traded a touch higher following the Greek authorities outlining their austerity measures. Highlights include freezing of state pensions, increases in VAT and spending cuts, with a view to raise E4.8bn, half of which is from lower spending, and half from increased revenues. Greece has vowed to reduce their deficit by 4% to 8.7% [...]

Sterling continues to be under pressure, with a number of reasons giving traders reasons to move out of the UK’s currency. Yesterday’s M4 money supply data highlighted weakness in the UK economy, and furthered the belief that quantative easing may need to be re-started sooner rather than later. Concerns that we may have a hung [...]

The Euro saw another bout of selling as concerns resurfaced about the state of the Greek economy. In the bond market, the price for insuring Greek sovereign debt rose by 10 basis points, sparking fears that their debt may be downgraded to junk status. Investors are worried that they cannot service their debt, with some [...]

Ahead of the two day testimony by Bernanke to the Senate, the US Dollar slipped back from eight month highs as investors took risk off the table. Bernanke is scheduled to start speaking at 1500 hours this afternoon, but looking at the wider market, concerns over consumer confidence in the US, and falling IFO numbers [...]