The US dollar has risen in the last 24 hours following a double hit of good news. First: US special forces have announced the demise of Osama bin Laden in a firefight in Pakistan and second: precious metals have declined following a revision in CME trading requirements.
Hello and welcome to the Pure FX recap of all recent events on the foreign exchange market. This report covers 30.04.2011 – 02.05.2011.
Intent on selling US dollars in exchange for sterling or euros? Then it’s an ideal time: following a double hit of positive data the US dollar has risen against major rivals.
First of all US special forces have announced the demise of Osama bid Laden in a firefight in Pakistan. Bin Laden masterminded the September 11th attacks in New York almost a decade ago and is/was the head of radical Islamic group Al Qaeda. Hence reports of his death have caused jubilation across the States.
Furthermore bullion and silver have fallen following a change in trading regulations from CME. CME lifted its minimum margin requirements almost a thousand dollars to $16000 – causing the markets to pick up US dollars in lieu of costlier precious metals. These releases have prompted the US dollar to highs not reached in months.
In US economic data reports have been upbeat in the last 24 hours.
Personal income levels increased 0.5% in April beating forecasts of a 0.3% rise. The consumer sentiment index from Reuters increased to 68.9 in April compared to 67.5 previous. Last of all US construction spending increased 1.4% in March compared to a 2.4% decline the month before.
So it might be a good idea to take advantage of US dollar strength before it fails.
EU economic data in the past 24 hours has been good for the most part. In particular the euro has climbed against sterling even more on strong manufacturing figures.
First of all the German manufacturing PMI increased to 62.0 last month compared to forecasts of 61.7. The EU manufacturing PMI beat forecasts also to reached 58.0 in April. EU consumer confidence meanwhile increased to -10.6 last month compared to -11.6 in March. EU unemployment remained at 9.9% in March.
However there have been signs that the EU outlook could sour in the coming months. Economic and industrial confidence both declined last month – falling -0.8 each compared to March. In addition German retail sales fell for the second consecutive month – declining -2.1% last month compared to -0.4% previous.
It’s been a quiet period in Britain over the weekend. Both the bank holiday and royal wedding mean no data has been released.
This morning meanwhile there’s been some negative data from Britain’s manufacturing sector. The PMI declined to 54.6 last month compared to forecasts of 57.5.
The latest British CBI industrial trades data is released later this morning.
From the States meanwhile the latest factory orders figures are unveiled in addition to total vehicle sales figures.
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