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Forex News – Sterling at 28-year low versus aussie

Posted on March 11, 2013 at 9:56 am GMT

Sterling remains weak against the dollar in Monday trading as the divide between US and UK economic growth widens, especially after strong US jobs data on Friday sent the GBPUSD plummeting to a 2-1/2-year low. The improving US labour market has raised speculation that the Federal Reserve may cut back on its asset purchase programme later this year. Meanwhile, on the contrary in the UK, the Bank of England may actually expand quantitative easing as the British economy is at [..]

Forex News – Dollar jumps after strong nonfarm payrolls numbers

Posted on March 8, 2013 at 1:54 pm GMT

The dollar extended higher against the yen after a strong US jobs data. The nonfarm payrolls report reported much better than expected in February, showing 236,000 jobs were created in the US economy last month. This was more than the forecast for just a 160,000 rise. Meanwhile, January’s figures were revised down 38,000, now at 119,000 from 157,000. Also good news was that the unemployment rate fell to 7.7 percent, finally setting a new low since December 2008. Today’s upbeat [..]

Forex News – Euro and sterling gain after central banks leave rates unchanged

Posted on March 7, 2013 at 2:35 pm GMT

The euro rose against the dollar after the European Central Bank announced its decision to leave interest rates on unchanged as was widely expected, after its policy meeting on Thursday. The central bank’s Governing Council left the key lending rate at 0.75 percent. EURUSD climbed to $1.3115 from $1.3022 before the announcement. The single currency then pushed higher to $1.3096 as ECB President Mario Draghi’s press conference got underway 1330 GMT. Markets were initially downbeat on the economic outlook for [..]

Forex News – Dollar jumps versus yen after ADP jobs increase

Posted on March 6, 2013 at 1:30 pm GMT

Dollar jumped against the yen following data showing the U.S. economy created more private-sector jobs than expected last month. The ADP report showed new private-sector jobs increased by 198,000 in February, the highest since February 2012, and higher than expectations of 172,000. Meanwhile, the January 2013 report, which reported job gains of 192,000, was revised upward by 23,000 to 215,000 jobs. ADP is a leading provider of human capital management solutions, in collaboration with Moody’s Analytics . The report, which [..]

Forex News – Sterling gains after service PMI beats forecast

Posted on March 5, 2013 at 10:14 am GMT

Sterling benefitted from upbeat data which showed UK services Purchasing Managers Index (PMI) came in above forecast. The PMI number points to a 0.1 percent rise in UK GDP in the first quarter. According to a report from Markit/CIPS PMI, the PMI for services ticked up to 51.8 in February from 51.5 in January, beating forecasts of 51.0. This is the sector’s second consecutive month above the 50 point level which demarcates growth from contraction. The data is important since [..]

Forex News – Euro rises after improved PMI's

Posted on March 5, 2013 at 9:42 am GMT

The euro rose to a session high of $1.3074 after satisfactory numbers from the Purchasing Managers’ Index (PMI). Germany showed the best improvement, with its services PMI remaining in expansion territory at 54.7, up from a previous 54.1 points and beating expectations. Germany accounts for about 30 percent of euro zone output so the data was important. Germany is seen as Europe’s powerhouse, and is looked upon to help keep the euro zone afloat. Other PMI’s from other euro zone [..]

Forex News – Sterling weakens after soft UK construction data

Posted on March 4, 2013 at 10:26 am GMT

Sterling moved lower against the dollar after disappointing data on Markit/CIPS Construction Purchasing Managers’ Index (PMI), causing cable to drop to $1.4998 from $1.5051 beforehand. Output in the construction sector fell at the fastest pace in more than three years in February despite a rare pick-up in house building. PMI declined further below the 50-point level which demarcates expansion from contraction. The index fell to 46.8, the lowest since October 2009, from January’s 48.7, despite analysts’ forecasts for an improvement [..]

Forex News – US federal budget cuts take effect after lawmakers fail to reach deal

Posted on March 2, 2013 at 8:53 pm GMT

The United States economic recovery is at risk of slowing down after the March 1st deadline for automatic federal spending cuts to talk into effect. President Obama and Congress failed to reach an agreement before the Friday midnight deadline for these so-called sequester cuts which will result in $85 billion worth of government spending cuts this year. President Obama said after signing into effect these cuts that “These cuts are not smart, they will hurt our economy and cost us [..]

Forex News – Sterling tumbles on weak manufacturing data

Posted on March 1, 2013 at 10:44 am GMT

Sterling tumbled to a fresh 2-1/2 year low against the dollar on Friday after investors sold off the currency in reaction to disappointing news that the UK manufacturing sector contracted in February despite forecast for an increase. Data from Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) showed a drop to 47.9 from a downwardly revised 50.5 in January, which surprised markets as consensus was for a rise to 51.00. The 50 point level demarcates expansion from contraction. The data was a [..]

Forex News – China factory growth stalls

Posted on March 1, 2013 at 8:36 am GMT

Growth in China appears to have steadied in February, as a manufacturing survey gave a lower reading than expected, but not enough to stir markets. The official purchasing managers’ index (PMI) recorded a dip to 50.1, slightly below a 50.2 forecast and down from the 50.4 reading in January. This figure is still above the 50 point level which demarcates an expansion from contraction. Contributing the sluggish factory growth is a cooling in domestic demand due to firms being hit [..]

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