Dollar slides. Currency market to focus on today's US figures.
The US dollar slid further against major currencies overnight as a drop in Tokyo shares prompted a further cut back in risky positions. The Swiss Franc and Euro broke 3 month levels, hitting 1.3310 and 1.2080 respectively.
The Swiss Franc was also helped by an increase of 0.25 percent in the countries benchmark interest rates to 2.25 percent on Thursday.
Adding fuel to the fire yesterday afternoon was the release of differing economic data from the US.
During the afternoon regional manufacturing surveys in New York and Philadelphia painted a bleak picture of the current economic state, New York reported a 1.9 reading v 24.4 in the previous month and Phil Fed survey showed an increase of just 0.2.
This was then contradicted by PPI for the month of February. Figures released showed a reversal of the previous month with an increase of 1.3 percent and the core index rising 0.4 percent in the month.
With markets already wary of growth problems in the mortgage and housing sectors all eyes will be on figures being released today.
In the Euro Zone as in the UK any meaningful data was thin on the ground yesterday. The Euro was helped by the Swiss National Bank rate decision and the release of consumer price data, which although not market moving seemed to reinforce policy officials sentiments of continued inflationary potential in the region.
The Pound was mostly led by technical data yesterday after the over hang of Wednesday's positive employment data. People are now starting to prepare for next week's key releases in the UK including Retails sales for the month and MPC minutes from this months rate decision.
Andrew Sentence of the BofE's Monetary Policy Committee was quoted as saying yesterday that the Bank ''should not repeat the mistakes of 1987 by lowering interest rates and stoking a consumer boom if the turbulence on world stock markets worsened''.
We also saw Norway's central bank raise its main interest rate by 0.25 percent to 4.0 percent. Norges Bank signalled four more rate rises this year, steepening its earlier trajectory, which had previously indicated rates would rise to about 4.5 percent by the end of 2007.
The Australian Dollar hit a three week high of 0.7923 against the dollar as a RBA official warned recent strength in demand, output and wages could increase underlying inflation.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The Swiss Franc was also helped by an increase of 0.25 percent in the countries benchmark interest rates to 2.25 percent on Thursday.
Adding fuel to the fire yesterday afternoon was the release of differing economic data from the US.
During the afternoon regional manufacturing surveys in New York and Philadelphia painted a bleak picture of the current economic state, New York reported a 1.9 reading v 24.4 in the previous month and Phil Fed survey showed an increase of just 0.2.
This was then contradicted by PPI for the month of February. Figures released showed a reversal of the previous month with an increase of 1.3 percent and the core index rising 0.4 percent in the month.
With markets already wary of growth problems in the mortgage and housing sectors all eyes will be on figures being released today.
In the Euro Zone as in the UK any meaningful data was thin on the ground yesterday. The Euro was helped by the Swiss National Bank rate decision and the release of consumer price data, which although not market moving seemed to reinforce policy officials sentiments of continued inflationary potential in the region.
The Pound was mostly led by technical data yesterday after the over hang of Wednesday's positive employment data. People are now starting to prepare for next week's key releases in the UK including Retails sales for the month and MPC minutes from this months rate decision.
Andrew Sentence of the BofE's Monetary Policy Committee was quoted as saying yesterday that the Bank ''should not repeat the mistakes of 1987 by lowering interest rates and stoking a consumer boom if the turbulence on world stock markets worsened''.
We also saw Norway's central bank raise its main interest rate by 0.25 percent to 4.0 percent. Norges Bank signalled four more rate rises this year, steepening its earlier trajectory, which had previously indicated rates would rise to about 4.5 percent by the end of 2007.
The Australian Dollar hit a three week high of 0.7923 against the dollar as a RBA official warned recent strength in demand, output and wages could increase underlying inflation.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: Bank of England, Norges Bank, Swiss National Bank
posted by Drs Search @ 9:02 AM
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