Foreign Exchange - UK Daily Update - Written by jeremy on Monday, October 13, 2008 6:47 - 0 Comments
British Banks To Be Recapitalised - World First’s Morning Update - 13th October 2008
This weekend has been calmer than last and the rhetoric emerging from politicians and city commentators has cooled. Announcements from the UK and Europe are not being portrayed as silver bullets however silver linings on the dark clouds of banking are starting to show themselves.
The Eurozone is expected to give countless billions of euros to member states and their constituent banks to shore up individual financial sectors. It is a very similar plan to that which the UK government released last week and will consist of extra liquidity measures, loan guarantees and pure recapitalisation.
The main news however which will affect most readers is the recapitalisation of 4 of the major high street banks. News is expected any minute now of how RBS, HBOS, Barclays and Lloyds will be dealt with under the new scheme but early reports suggest RBS at least will looking for £20bn from the UK government, and given that the value of the bank at the close of business was £12bn, a controlling stake or part-nationalisation is all but assured. We expect further announcements as we move close to 8am.
Friday was a vicious day as high yielding currencies were spanked by global equity falls caused speculators to head for the perceived safety of the yen and dollar.
Today is a US holiday and therefore we see the main drivers of the markets today being the UK’s bank recapitalisation efforts and the subsequent fall out.
| Indicative Rates | ||
| Sell | Buy | |
| GBPEUR |
1.2590 |
1.2618 |
| GBPUSD |
1.7200 |
1.7227 |
| EURUSD |
1.3643 |
1.3670 |
| GBPJPY |
172.54 |
173.45 |
| GBPAUD |
2.5490 |
2.5584 |
| GBPNZD |
2.8444 |
2.8588 |
| GBPCAD | 1.9980 | 2.0060 |
| NZDUSD |
0.6001 |
0.6059 |
| GBPZAR |
15.69 |
15.75 |
| USDZAR |
9.11 |
9.17 |
| GBPPLN |
4.4243 |
4.4602 |
| Rates are dependent on amount transacted Please call 0207 801 9080 for a live rate quote |
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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. 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.
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