Archived IMT (2011.04.08)

UK inflation still a problem, Canada employment disappoints and Portugal bailout to be finalised by mid-May.

UK FACTORY ORDERS gates prices continue to push higher on the back of rising fuel costs making the Bank of England's job no easier when it comes to their next rate meeting. PPI input prices remained at 14.6% year on year despite expectations of a slight fall. As a front runner for CPI the omens dont look promising for a fall back in the CPI numbers next week. GBP continues to find progress beyond 1.6460 tricky in the short time while against the euro it has lost ground above 0.8800 to bring 0.8850 back in to play.

CANADIAN EMPLOYMENT data was a massive disappointment with a decline of 1.5k in March when markets were expecting a gain of 26.5k. This has seen the Canada dollar pull back from its strongest levels of the day at 0.9527 in spite of the surging oil price, which continues to make fresh 30 month highs.

A TARGET DATE OF MID-MAY has been set to agree some form of bail-out for Portugal, however a number of problems still remain including the agreement of more severe austerity measures. How these will be sanctioned by the Portuguese parliament when a less severe budget was rejected is one of a number of problems that need to be thrashed out. EURUSD remains on course for 1.4580 while above 1.4250.

By KM -AshrafLaidi.com Staff