Tuesday, 1 September 2009

Dollar recovers Bank Holiday losses following weak UK data

The pound made marginal losses against the greenback over the Bank Holiday, to close the day at $1.6288.
  • Sterling traded marginally higher on Friday morning as data bolstered hopes that the UK will return to growth in the current quarter by reporting that the economy contracted by 0.7% between April and June, not 0.8% as previously stated.
  • However, the greenback recovered its losses to close the day marginally up, as risk appetite was hindered by slightly weaker-than-expected consumer spending figures emerged from the US.
  • Although trading was closed in London yesterday, sterling received a boost from robust gains in world stocks, resulting in improved risk appetite.
  • In trading this morning, sterling has erased early gains against the greenback as investor sentiment was discouraged by weak UK manufacturing data and is currently trading at 1.6231.
  • Demand for sterling could continue today if a US Manufacturing PMI produces a figure above 50, as predicted, which would indicate industry expansion and support risk sentiment. There is also important US home sales data released at 15:00BST today.

No comments:

Post a Comment