The Pound made some serious gains against the Euro and the Dollar as data showed that the UK economy grew a bit more swiftly than expected. The Pound had its best day against the Dollar in nearly two weeks after revised GDP data showed that the economy grew 0.4 percent in the fourth quarter. A separate report also showed that UK house prices rose in March.

The Dollar made gains against the Euro while declining against the Pound as global stocks rose and oil traded near the highest level in more than a week increasing risk appetite. Although markets showed little reaction to data ,which showed that prices for US single family homes rose for the eighth straight month in January, the release of US consumer confidence data boosted optimism in the market. Confidence among US consumers climbed in March as Americans perceived that employment was starting to improve. The Conference Board’s confidence index rose to 52.5, exceeding the median forecast of 46.4 in February.

The Euro declined against the Pound and the Dollar after data showed that US consumers were feeling more confident about the future in March, giving a slight boost to investor risk sentiment. The single currency also hit a two-month high against the yen on relief that Greece was able to raise funds from the market, though gains were quickly trimmed as wider euro zone fiscal concerns weighed on sentiment. The euro should continue to trade with a limited upside potential given that the euro zone’s debt problems and weak growth mean the European Central Bank is in no rush to hike interest rates.

Data released 31st March 2010

EU      10.00 Flash HICP (March)

EU      10.00 Unemployment (February)

US      13.15 ADP Employment (March)

US      14.45 Chicago PMI (March)

US      15.00 Factory Orders (February)

Exchange rates

GBP/EUR 1.1233

GBP/USD 1.5096

EUR/USD 1.3438

GBP/AED 5.5460