Is Anyone Shopping In The UK?

Currencies Direct September 16th 2010 - < 1 minute read

yesterday’s moves in the Yen, the market is on high alert today for more
intervention by the Japanese authorities after a massive amount of Yen selling
knocked it from a 15 year high against the dollar. Comments overnight from Prime minister Kan
suggested that further intervention could follow, repeating his pledge that the
government will take decisive steps to counter the Yen rise when needed, and that
rapid Yen moves would not be allowed. Despite this, the Yen continued to creep
up against the dollar and euro.

Fed and US treasury declined
to comment on Japan’s
currency intervention, however, Eurogroup Chairman Juncker said that unilateral
currency intervention was not the appropriate way to deal with global imbalances.
The US
has a good deal of data due later today with PPI, Unemployment Claims, Philly
Fed Manufacturing data and lastly a speech from Treasury Secretary Geithner to
wrap it all up.

Sterling has weakened against the
Dollar and Euro as investors ran for cover following shocking retails sales
figures released for August. Results showed a -0.5% MoM move against a forecast
of +0.3% with the YoY figure showing just a 0.4% gain against a 2.0% expected
increase. Meanwhile the UK
claimant count rose last month by 2,300 which was the first increase since Jan
of this year. However, the annual rate of growth in average earnings rose
slightly in July, these increases are unlikely to be of any concern to the BOE
as they are still considered relatively low and are unlikely to add to the UK’s
current inflationary pressures.

by Tim Lewis

Written by
Currencies Direct

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