Tuesday April 11, 2006 - 10:04:15 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
Sterling vulnerable over trade
Sterling strengthened to near 0.6935 against the Euro on Monday before drifting back to 0.6950 in New York. Sterling hit resistance close to 1.7470 against the dollar and weakened to lows close to 1.7380 before recovering back to 1.7435 in early Europe on Tuesday. Sterling will continue to be pushed around by US and Euro interest rate expectations in the short term with choppy trading liable to continue in the short term.
The latest BRC retail survey recorded a 1.4% drop in like-for-like sales in March, maintaining the run of disappointing data. The data was distorted by the impact of cold weather, but will tend to unsettle the UK currency to some extent with persistent unease over the strength of spending.
The trade data recorded a February trade deficit of GBP6.5bn, unchanged from an upwardly-revised GBP6.5bn in January. The goods and services deficit widened to GBP4.8bn from GBP4.6bn. There are considerable reliability issues with the data, but the underlying deterioration will undermine confidence. Given the lack of yield support and growing market unease over countries running trade deficits, Sterling will be even more vulnerable to the deteriorating trend and structural concerns will persist.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."