Weekly Currency Update GBP/USD - Week ending 21st May

[Windsor02]

Hi all,

As promised here’s a brief update on what’s been happening with the US Dollar over the last week.

Two measures of manufacturing activity released last week, Empire State Index (19.1) and Philly Fed Index (21.4), both fell below market forecasts and perhaps indicated the start of a period of consolidation after strong growth in the last 12 months that has been underpinned by inventory rebuilding. Any slowdown in manufacturing growth will have implications for the fight against unemployment that remains stubbornly high at near 10%. The NAHB Housing Market Index (22) and Housing Starts (0.67m) both gave a boost to sentiment as they hit 2.5 year and 1.5 year highs respectively. Inflationary pressure in the economy remains benign with PPI (-0.1% m/m) and CPI (-0.1% m/m) both undershooting market forecasts.

On the whole another steady to positive week for data that was totally overshadowed by large scale asset sales caused by global growth and government regulatory intervention concerns.

GBP/USD movement – High’s & Low’s of last week (17th May –21st May)

High’s: 1.4551
Low's: 1.4228

A movement of 2.27%

Difference on £200,000

High: USD 291,020
Low: USD 284,560

Difference of: USD 6,460

Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.

Regards


Mark Bodega
Director - HiFX