The Pound made gains against the Euro while declining against the Dollar after better than expected US economic data, signs of tighter liquidity in US money markets, and investor’s flight to safety into the Dollar.
The Dollar made gains against the Euro and the Pound as US data illustrated better than expected results. The Commerce Department reported US new home sales shot up to 14.8% in April, the largest increase since May 2008, and surpassing expectations of an increase of 3.0%. The Commerce Department data also reported a rise in durable goods in April, showing strength in US manufacturing. The European debt crises and unsettling news from North and South Korea led investors to flock to the relative safe haven currency of the greenback.
The Euro declined against the Pound and the Dollar amid fears the European debt crisis could strain global growth. However, the rebound in global stocks helped limit the euro’s losses yesterday.
Data released 27th May 2010
UK 11.00 CBI Distributive Trades (May)
US 13.30 GDP (Q1 Revised)
US 13.30 Initial Jobless Claims (w/e 22nd May)