Is anyone shopping in the UK?
Currencies Direct September 16th 2010 - < 1 minute read
After 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.
The 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.
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Currencies Direct