European Session – Sterling falls after weak UK data
March 26, 2013 1:10 pm
Sterling lost ground against the dollar on Tuesday after weaker-than-expected Confederation of British Industry’s (CBI) realized sales data.
Figures showed that a survey of 118 UK businesses, including 69 retailers, found that retail sales volumes in the year until March 2013 was flat.Their business outlook was grim, given the underlying ongoing economic weakness in the British economy.
The CBI index registered zero in March versus the previous reading of 8, and was against forecasts for a rise to 12 points. The survey highlights the fact that not only are conditions bad still at this stage but add to the gloom-and-doom picture dominating in the UK.
Sterling fell to $1.5165 shortly after the data at 1100GMT, falling from $1.5179 beforehand and is heading towards $1.5142 going into the US session at 1200GMT.
Euro has been trading sideways against the dollar after experiencing its largest drop in weeks to a four-month low of $1.2829 in Monday’s US session. The euro is under pressure on concern over events in the euro zone and the ongoing debt crisis.
EURUSD traded between $1.2838 and $1.2883 during the European session. The single currency has fallen more than 6 percent from a peak of $1.3709 reached on February 1st.
Also weighing on the euro is speculation of a credit rating downgrade on Italy, which is still struggling to form a government after inconclusive elections last month. Moody’s rates Italy Baa2, two notches above junk status, with a negative outlook.
Against the yen, the euro fell a one-month low of 120.07 yen on Monday before steadying near 121.00 and trading sideways in today’s European session.
Dollar also suffered against the yen, falling to a low of 93.52 yen yesterday before steadying at around 94.15 yen. On March 12, USDJPY had peaked at a 3-1/2 year high of 96.69. That was because investors had sold the yen on anticipation of more aggressive policies from the Bank of Japan to defeat deflation.
Sterling lost ground against the dollar on Tuesday after weaker-than-expected Confederation of British Industry’s (CBI) realized sales data.
Figures showed that a survey of 118 UK businesses, including 69 retailers, found that retail sales volumes in the year until March 2013 was flat.Their business outlook was grim, given the underlying ongoing economic weakness in the British economy.
The CBI index registered zero in March versus the previous reading of 8, and was against forecasts for a rise to 12 points. The survey highlights the fact that not only are conditions bad still at this stage but add to the gloom-and-doom picture dominating in the UK.
Sterling fell to $1.5165 shortly after the data at 1100GMT, falling from $1.5179 beforehand and is heading towards $1.5142 going into the US session at 1200GMT.
Euro has been trading sideways against the dollar after experiencing its largest drop in weeks to a four-month low of $1.2829 in Monday’s US session. The euro is under pressure on concern over events in the euro zone and the ongoing debt crisis.
EURUSD traded between $1.2838 and $1.2883 during the European session. The single currency has fallen more than 6 percent from a peak of $1.3709 reached on February 1st.
Also weighing on the euro is speculation of a credit rating downgrade on Italy, which is still struggling to form a government after inconclusive elections last month. Moody’s rates Italy Baa2, two notches above junk status, with a negative outlook.
Against the yen, the euro fell a one-month low of 120.07 yen on Monday before steadying near 121.00 and trading sideways in today’s European session.
Dollar also suffered against the yen, falling to a low of 93.52 yen yesterday before steadying at around 94.15 yen. On March 12, USDJPY had peaked at a 3-1/2 year high of 96.69. That was because investors had sold the yen on anticipation of more aggressive policies from the Bank of Japan to defeat deflation.
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