World First Foreign Exchange 11 December 2009 Update: Bank of England unmoved
As the market expected, the Bank of England held rates at the 0.5% and the level of quantitative easing at £200bn. There was no move to lowering the level of interest that the Central bank pays commercial banks deposits, something that was hinted as a possibility in the past. Sterling was steady as a result, closing the day largely where it opened against the dollar and euro.
The Swiss National Bank were also faced with a no brainer, leaving rates at 0.25%. They began the process of withdrawing the Quantitative easing program they also initiated in March. The SNB announced it would begin slowing halting the purchases of Franc denominated bonds. CHF was largely unmoved by the news.
Data from Australia showed how good the unemployment situation down under is, predictably sending the Aussie higher. Bullish factory output from China also helped to give the Aussie a leg up.
Today has PPI figures from the UK at 9:30, and retail sales from the US due at 13:30.
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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.
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