Foreign Exchange - UK Daily Update - Written by jeremy on Tuesday, January 27, 2009 8:18 - 0 Comments
Barclays Gives Sterling A Leg Up - World First’s Morning Update - 27th January 2009
Finally the UK banking sector has found a soupcon of a silver lining to the cloud it’s been sat under for the past week and allowed sterling to haul its way back from the precipice.
Barclays, until yesterday, had rumour and mischief flying around it as if it was staffed by a load of drug taking A-list celebrities with the thronged media salivating for yet another victim of the banker’s favourite narcotic: credit. However schadenfreude will have to wait another day as Barclays announced that they are fine and to show us how fine they are their end of year results will now be published on Feb 5th. The share price soared 73% with most other financials being dragged along on the tide of goodwill. These increases allowed the demand for safety to fall off and let riskier assets, sterling included, appreciate.
Asian markets have continued upwards in spite of a rather scary amount of job losses seen around the globe. 76,000 jobs were lost yesterday alone in a day that typified the extreme nature of this downturn and that no one sector is affected; construction, retail, manufacturing and finance were all affected.
While we are glad for the past 24hrs of £ appreciation this cannot be classified a reversal of the recent downtrend until it is at least 3 or 4 cents higher. We are still comfortable with assertions that near term sterling weakness is probable, the past day’s moves are simply allowing forwards and options hedges to look that much more attractive.
Euro gains have been stopped in their tracks as the market awaits the German IFO business climate reading.
Check out today’s video update at http://uk.youtube.com/user/WorldFirstJC
|
Indicative Rates |
||
|
|
Sell |
Buy |
|
GBPEUR |
1.0674 |
1.0699 |
|
GBPUSD |
1.4141 |
1.4167 |
|
EURUSD |
1.3234 |
1.3256 |
|
GBPJPY |
127.01 |
127.38 |
|
GBPAUD |
2.1140 |
2.1197 |
|
GBPNZD |
2.6588 |
2.6645 |
|
GBPCAD |
1.7206 |
1.7286 |
|
NZDUSD |
0.5305 |
0.5348 |
|
GBPZAR |
14.14 |
14.20 |
|
USDZAR |
9.98 |
10.04 |
|
GBPPLN |
4.6201 |
4.6433 |
|
EURJPY |
118.73 |
119.29 |
|
Rates are dependent on amount transacted |
||
Please feel free to contact me (jeremy.cook@worldfirst.com) if you have any questions or thoughts regarding these updates or if you are interested in a particular event in the calendar. If you would like to discuss your foreign exchange requirements, please contact our:
Corporate Foreign Exchange Team on 020 7801 9050 or our Private Client Currency Exchange Team on 020 7801 9080.
To view any past or present currency blogs please click on the following link www.worldfirst.com/blog
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.
Leave a Reply