October, 2008
Foreign Exchange - UK Daily Update - Thursday, October 30, 2008 9:16 - 0 Comments
Fed Rate Cut Bad News for Dollar – World First’s Morning Update – 30th October 2008
The Federal Reserve slashed its benchmark lending rate by 50 basis points to 1% in a unanimous move overnight. This saw the dollar slide for its largest one day fall in 23 years in the lead up to the announcement, eroding much of the Greenbacks newfound strength against Sterling and Euro. The Fed released a relatively gloomy statement with the release, admitting “the pace of economic activity appears to have slowed markedly”. The ball is now in UK and Europe’s court to cut rates in their next policy meetings, and this looks increasingly likely.
Stock markets outside of the US had another bullish day, all registering strong gains as confidence ebbs back into the markets. The improvement in risk appetite has seen currencies such as the Australian, New Zealand and South African currencies reverse some of their recent losses and will continue to be a major factor in deciding the commodity currencies values. Australian Dollar surged for its biggest ever three day gain, helped in part by some hawkish comments by the Bank of Australia’s Deputy Governor when assessing the inflation situation down under.
Looking ahead today, the data from the US will keep us on our tiptoes. Advanced GDP figures are expected to provide a negative reading of -0.5%, and PCE figures and Initial jobless claims are also added to the mix this afternoon. Overnight, the Bank of Japan also has their rate decision to make, which will provide Yen with some movement today. Interest rates are already at an eye watering 0.5%, leaving the BoJ little headroom to cut rates despite the recent murmurings suggesting they will.
|
Indicative Rates |
||
|
|
Sell |
Buy |
|
GBPEUR |
1.2573 |
1.2601 |
|
GBPUSD |
1.6598 |
1.6627 |
|
EURUSD |
1.3188 |
1.3214 |
|
GBPJPY |
163.42 |
164.26 |
|
GBPAUD |
2.4220 |
2.4281 |
|
GBPNZD |
2.7751 |
2.7799 |
|
GBPCAD |
1.9808 |
1.9892 |
|
NZDUSD |
0.5961 |
0.6013 |
|
GBPZAR |
15.75 |
15.83 |
|
USDZAR |
9.44 |
9.53 |
|
GBPPLN |
4.3551 |
4.4126 |
|
EURJPY |
130.03 |
130.84 |
|
Rates are dependent on amount transacted |
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Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.
Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms.
- Currency fluctuations costing £900m a year
- Risk Appetite Returns – World First’s Morning Update – 29th October 2008
- Rand Devalued as the Alliance Debate – World First’s Rand Update – 28th October 2008
- Equities Lead The Way – World First’s Morning Update -28th October 2008
- The Perfect Storm – World First’s Morning Update – 27th October 2008
- Death of the Carry Trade? – World First’s Sterling Update – 27th October 2008
- World First in the press – FT Weekend 25 October 2008
- World First in the press: Daily Telegraph 24 October 2008
- Risk Aversion Continues – World First’s Morning Update – 24th October 2008
- Unanimous Cut as Risk Aversion Builds – World First’s Morning Update – 23 October 2008
- Recession on the Tips of our Tongues -World First’s Morning Report – 22nd October 2008
- Canada Cuts Rates in Tough Environment – World First’s Canadian Update – 21st October 2008
- Euro Battles on as France act on Banking System – World First’s Euro Update – 21st October 2008
- Sterling Tested as Dollar Finds Support – World First’s Morning Update – 21st October 2008
- Rand Devalues and Political Instability Continues – World First’s Rand Update – 20th October 2008
- Volatility Continues as Emerging Markets Feel the Pressure – World First’s Sterling Update – 20th October
- Confidence Shattered in the US – World First’s Morning Update – 20th October
- Recession Worries Dominant Sentiment – World First’s Morning Update – 17th October 2008
- Dollar Continues To Strengthen In The Face Of Global Slowdown Fears – World First’s Morning Update – 16th October 2008
- Inflation Soars as Recession Looms – World First’s Morning Update -15th October 2008
- Canadian Dollar Strains as Risk Aversion Bites – World First – Canadian Update – 14th October
- World First in the press: ft.com 13 October
- World First – Euro Update – 14th October – EU Finally Approve Bailout Plans
- Sterling Helped By Global Action – World First’s Morning Update – 14th October 2008
- World First NZD/AUD Weekly Update – 13th October 2008
- World First – Rand Update – 13th October – Rates Held as Confidence Slips
- World First – Sterling Update – 13th October – Sharemarket Crash Leaves Sterling Under Pressure
- British Banks To Be Recapitalised – World First’s Morning Update – 13th October 2008
- Stock Markets Crash as Fear Hammers Bourses – World First’s Morning Update – 10th October 2008
- Interest Rates Slashed As Recession Looms – World First’s Morning Update – 9th October 2008
- World First in Spectator Business: October 2008
- Darling Helps Banks As Fear Continues – World First’s Morning Update – 8th October 2008
- World First – Rand Update – 7th October – Rand Suffers on the Back of Global Meltdown
- World First – Euro Update – 7th October – The Bad News Continues
- Interest rate cuts in Australia help markets early – World First’s Morning Update – 7th October 2008
- World First – Sterling Update – 6th October – TARP passed as the Euro Zone falters
- TARP is passed, HYPO hurts the Euro – World First’s Morning Update – 6th October 2008
- TARP vote due, Euro weakens – World First’s Morning FX Update -3rd October 2008
- World First NZD/AUD Weekly Update – 29th September 2008
- Dollar Strengthens As Fears Continue – World First’s Morning FX Update – 2nd October 2008
- World First’s Weekly Sterling Update – 30th September – The Madness Continues
- Markets wait for Senate Vote – World First’s Morning FX Update – 1st October 2008
