The Pound found some support against the Euro on Thursday from a report which showed that UK factory orders made a modest rebound in February. According to the Confederation of British Industry its monthly industrial trends order book rose to +3 this month, a jump from the -2 recorded in January. The figure was well above the average level of -17 but just shy of forecasters expectations for a figure of +5. If Friday’s retail sales reports come in weaker than expected then we can expect Sterling to weaken as a result.
Currently the Pound is trading in the region of 1.2156 against the Euro and 1.6670 against the US Dollar.
The US Dollar firmed against the Euro after data released by the US Labour department showed that the number of US citizens claiming unemployment benefit fell by 3,000 last week. The figure was just short of the 4,000 expected by economists. A separate report showed that consumer prices ticked higher to 1.6% on a yearly basis last month.
Currently the US Dollar is trading in the region of 0.5999 against the Pound and 0.7292 against the Euro.
The Euro softened against a number of its peers after data showed that the Eurozone’s economic recovery is showing signs of easing this month. The manufacturing PMI for the region fell to 53 from the 54 last month and a PMI for services rose by a smaller than forecast margin. Disappointing data out of China earlier in the session set the tone of the market with risk aversion being the theme of the day. Ongoing clashes in the Ukraine also weighed on the Euro as investors grow nervous over what action the EU is likely to take as the situation in the country deteriorates.
Currently the Euro is trading in the region of 0.8226 against the Pound and 1.3717 against the US Dollar.
The ‘Aussie’ fell against several peers after Chinese manufacturing data disappointed the markets. The HSBC Manufacturing Index fell to a seven month low of 48.3 this month raising concerns that the Chinese economy is slowing.
Currently the Australian Dollar is trading in the region of 0.5374 against the Pound, 0.6537 against the Euro and 0.8965 against the US Dollar.
The Canadian Dollar remained under pressure after data released yesterday showed that Canadian wholesale sales fell by 1.4% in December, month-on-month, rather than slipping by 0.4 %. November’s decline was negatively revised to 0.2%.
Currently the Canadian Dollar is trading in the region of 0.5415 against the Pound, 0.6581 against the Euro and 0.9020 against the US Dollar.