The Pound slightly declined against the Euro while making gains against the Dollar on Friday supported by surprisingly positive economic data. A sentiment index rose 10 points to -21, the highest in five months, with the gain partly attributed to a “feel good factor” following two four-day holiday weekends and the royal wedding. House prices also increased by 0.3% this month, better than the median forecast. While the strong economic reports are welcomed after months of worsening data, it will take more than slightly improved numbers to prompt the BoE
The Dollar declined against the Pound and the Euro on Friday pushed lower by weak economic data and thin liquidity.
Futures traders have cut bets on a Fed rate hike in March of 2012 to 24%, down from a 47% just three weeks ago. Pending home sales also missed the mark, widening the annual decline to -26.8%, far worse than last month’s annualized pace of -12.9%. However, U. of Michigan confidence registered 74.3, up from the previous reading of 72.4.
The Euro climbed to a near three-week high against the dollar today as concerns over the Greek debt crisis eased. The Wall Street Journal reported that Germany is considering dropping its push for a rescheduling of Greek bonds to facilitate a new package of aid loans the country. Traders said this could be a shift that helps break the European impasse over Greece’s funding needs.
Data released 31.05.2011
EU 10.00 Flash HICP (May)
EU 10.00 Unemployment (April)
UK 11.00 Land Registry House Prices (April)
US 14.00 Case Shiller House Prices (March)
US 14.45 Chicago PMI (May)
US 15.00 Consumer Confidence (May)