Foreign Exchange - UK Daily Update - Written by on Monday, June 8, 2009 9:47 - 0 Comments

Sterling Labours Under The Pain Of Politics – World First’s Currency Exchange Morning Update – 8th June 2009

Sterling Labours Under The Pain Of Politics
All this and more is available on our video blog at http://uk.youtube.com/user/WorldFirstJCSterling continued to reverse away from its recent gains on Friday as a mixture of unexpected jobs data from the US and political friction here at home weighed.

US Non Farm Payrolls were expected to print at 520k with an unemployment rate of in and around 9.2%. While the rate worsened to 9.4% the change was a lot healthier than expected -345k. Both sterling and the euro immediately gained ground against the USD before falling heavily from 13.45 BST onwards with EURUSD unable to hold 1.40 and Cable giving up 1.60 rather tamely.

Further friction in the UK government and the possibility that Gordon Brown may be forced to resign also weighed on the pound. With ministers and cabinet members resigning left, right and centre plus a poor showing in the local and European elections the Labour party is in disarray.

As you can see from the rates table below sterling has fallen alongside Labour’s poll results.

As far as data goes it is a quiet day with only German factory orders of note. Equity markets have opened lower this morning and we foresee a bad day for sterling.

Indicative Rates Sell Buy
GBP/EUR 1.1370 1.1397
GBP/USD 1.5869 1.5896
EUR/USD 1.3939 1.3963
GBP/JPY 156.10 156.64
GBP/AUD 1.9935 1.9991
GBP/NZD 2.5345 2.5407
GBP/CAD 1.7764 1.7831
NZD/USD 0.6242 0.6265
GBP/ZAR 12.86 12.92
USD/ZAR 8.10 8.15
GBP/PLN 5.1526 5.1883
EUR/JPY 137.22 137.66
Rates are dependent on amount transacted. Please call 0207 801 9080 for a live rate quote.

 

Please feel free to contact me jeremy.cook@worldfirst.com(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 on 020 7801 9050 or ourPrivate Client Currency Exchange 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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