Thursday, 1 Apr 2010

European Manufacturing Data Strengthens Pound, Euro Unchanged

The Pound was higher during the European trading session after the release of positive manufacturing data from Britain, while the Euro was relatively unchanged after similar EU data failed to move the currency.

Better than expected manufacturing data was released from both Britain and the EU this morning, helping to push the pound higher to 1.5246, after opening the day at 1.5203. The Euro reacted little to the positive economic news as the EUR/USD is currently unchanged from its opening price of 1.3507.

A lack of a reaction from the EUR/USD to the better than expected manufacturing data shows just how pessimistic the market is on the EU economy and the 16-nation currency. Negative market sentiment from the Greek fiscal crisis and the Irish banking bailout is overriding any potential correction in the EUR/USD pair. Currently the cross is in another consolidation period, range trading between the prices of 1.3560 and 1.3385.

Potential exists for the pair to break down towards this support level during today's New York trading session. U.S. weekly unemployment data is due out along with important manufacturing numbers.