Market Overview - June 2009

For the latest news releases affecting exchange rates, please see our currency blog which is updated daily at http://currencyindex.blogspot.com.

June sees a number of important economic data releases which could affect exchange rates for sending money abroad. Of as much importance in the current climate however, will be whether the Pound’s improvement during May can be sustained with some more confidence in an economic recovery.

It is easy to forget when buying foreign currency, that exchange rates can be very fickle and any gains made in the preceding weeks can be quickly eroded by any economic news. In addition, although the Euro and Dollar exchange rates have been improving, those of you who need to send money to New Zealand or Australia have seen exchange rates continue to struggle. Call Currency Index for the latest news affecting your particular transaction.

Unemployment Rate - Top
The Unemployment Rate released by the Eurostat is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the European Economy. If the rate is up, it indicates a lack of expansion within the European lobar market. As a result, a rise leads to weaken the European economy. A decrease of the figure is seen as positive (or bullish) for the EUR, while an increase is seen as negative (or bearish).

RBA Interest Rate - Top
RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

Pending Home Sales - Top
The Pending Home Sales released by the National Association of Realtors is a leading indicator of trends of the housing market in the US It captures residential housing contract activity of existing single-family homes. As the housing market is considered as a sensitive factor to the US economy, it generates some volatility for the USD. A high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).

Nationwide Consumer Confidence - Top
The Nationwide Consumer Confidence captures the level of confidence that individuals have in current and future UK's economy. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. A high reading is also positive for the GBP, while a low reading is negative.

Employment Change - Top
The Employment Change released by the Automatic Data Processing, Inc is a measure of the change in the number of employed people in the US Generally speaking, a rise in this indicator has positive implications for consumer spending which stimulates economic growth. Therefore, a high reading is seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.

Factory Orders - Top
The Factory orders released by the US Census Bureau is a measure of the total orders of durable and non durable goods such as shipments (sales), inventories and orders at the manufacturing level which can offer insight into inflation and growth in the manufacturing sector. A high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).

Retail Sales - Top
The Retail Sales released by the Eurostat is a measure of changes in sales of the German retail sector. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales.The changes are widely followed as an indicator of consumer spending. The positive economic growth anticipates "Bullish" for the EUR, while a low reading is seen as negative, or bearish, for the EUR.

BoE Interest Rate - Top
BoE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

ECB Interest Rate - Top
ECB Interest Rate Decision is announced by the European Central Bank. If the ECB is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the EUR. Likewise, if the ECB has a dovish view on the European economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

Non-Farm Productivity - Top
The Non-farm Productivity released by the Bureau of Labor Statistics of the US Department of Labor shows the output per Hour of labor worked. Non-farm Productivity indicates the overall business health in the US, which has an influence on GDP. A high reading is positive (or bullish) for the USD, while a low reading is negative (or bearish).

BoC Interest Rate - Top
BoC Interest Rate Decision is announced by the Bank of Canada. If the BoC is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the CAD. Likewise, if the BoC has a dovish view on the Canadian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

Consumer Price Index - Top
The Consumer Price Index, issued by the Swiss Federal Statistical Office, measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends.The purchase power of CHF is dragged down by inflation. A high reading is positive for the CHF, while a low reading is negative

Producer Price Index - Top
The Producer Price Index Input released by the National Statistics is a monthly measurement of the rate of inflation experienced by the UK manufactures when buying goods and services. It captures changes in the average price of a fixed basket of goods and services purchased by the UK Manufactures. A high reading is positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish).

Unemployment Rate - Top
The Unemployment Rate released by the Statistics Canada is the number of unemployed workers divided by the total civilian labor force. It is a leading indicator for the Canadian Economy. If the rate is up, it indicates a lack of expansion within the Canadian lobar market. As a result, a rise leads to weaken the Canadian economy. A decrease of the figure is seen as positive (or bullish) for the CAD, while an increase is seen as negative or bearish.

Earnings & Non-Farm Payrolls - Top
The Average Hourly Earning released by the Bureau of Labor Statistics of the US Department of Labor is a significant indicator of labor cost inflation and of the tightness of labor markets. The Federal Reserve Board pays close attention to when setting interest rates. A high reading is also positive for the USD, while a low reading is negative.
The nonfarm payrolls released by the Bureau of Labor Statistics of the US Department of Labor is one of the most important data. The report presents the number of people on the payrolls of all non-agricultural businesses. The monthly changes in payrolls can be excessively volatile. A high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).

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