The Pound made gains against the Euro while remaining relatively unchanged against the Dollar following positive data and comments from BoE policymakers instilling a degree of hope about a recovery in the UK economy.  UK CBI’s retail sales figures came in slightly better than expected rising from 3 to 8 in October.

The Dollar made gains against the Euro while remaining relatively unchanged against the Pound following some negative consumer confidence data. Investors are once again using the US Dollar as a safe haven; when negative US data emerges investors sell riskier assets come back to the USD due to the high level of liquidity and diversity of USD financial assets, which offer a certain insurance against excessive exchange rate movements.

The Euro declined against the Pound and the Dollar yesterday following the single currency falling below a key technical level, prompting a sell-off and after data showed US consumer confidence worsened in October. Investors have been using the euro as a proxy for risk appetite, selling the currency when economic data is negative.

Data released 27^th October 2009

UK       11.00   Land Registry House Prices (September)

US       12.30   Durable Goods (September)

US       14.00   New Home Sales (September)