Foreign Exchange - UK Daily Update - Written by jeremy on Tuesday, March 24, 2009 8:17 - 0 Comments
Geithner To Stock Markets’ Rescue - World First’s Morning Update - 24th March 2009
All this and more is available on our video blog at http://uk.youtube.com/user/WorldFirstJC
The US Treasury unveiled its latest economic weapons system yesterday. The “Public-Private Investment Programme” will purchase toxic debt from banks in an aim to get credit markets going and lending to businesses and private individuals higher.
Stock markets loved it with the S&P 500 higher by 7% and the DJIA and NASDAQ also up by a similar figure. The main beneficiaries were naturally the banks as Citibank rose by 19%, Bank of America by 26% and Goldman Sachs posted a 15% gain. In the UK Barclay’s are nearly 30% higher already while HSBC is 16% up. Indices in Asia also benefited to an average 3.6%
Dollar weakened on the announcement against sterling in a double whammy; the expansion of US money supply will naturally weaken the dollar while the correlation between GBP and the financial services sector is still alive and well. The dollar also weakened as existing home sales posted an unexpected jump to 4.72m against an expected 4.45m.
Currencies will closely follow equity markets today although there is some big news from the UK. The Retail Price Index is expected to dip below 0% for the first time in nearly 50 years. What this means is prices will start to fall and we could end up in a deflationary spiral if consumers start to think ‘why buy now when it could be cheaper in a week’s time?’ leading to decreasing demand and growth. That announcement is due 09.30. News from the US is at 14.00
All this and more is available on our video blog at http://uk.youtube.com/user/WorldFirstJC
|
Indicative Rates |
||
|
|
Sell |
Buy |
|
GBPEUR |
1.0760 |
1.0784 |
|
GBPUSD |
1.4615 |
1.4642 |
|
EURUSD |
1.3571 |
1.3595 |
|
GBPJPY |
143.43 |
143.97 |
|
GBPAUD |
2.0822 |
2.0883 |
|
GBPNZD |
2.5787 |
2.5835 |
|
GBPCAD |
1.7888 |
1.7950 |
|
NZDUSD |
0.5658 |
0.5689 |
|
GBPZAR |
13.77 |
13.83 |
|
USDZAR |
9.40 |
9.45 |
|
GBPPLN |
4.8539 |
4.8994 |
|
EURJPY |
133.20 |
133.67 |
|
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. 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