httpvh://www.youtube.com/watch?v=-ndqjPJ7yOU
You could tell it was the last Friday before Christmas in the markets as trading was very quiet. The lack of liquidity can lead to volatility and abnormal moves however and I would be surprised if we didn’t see at least one day this week that is characterised by agitated trade.
Data on Friday gave us some good news for the euro in the form of a better than expected German IFO. Fears for the EU economy have increased since the 2 recent credit rating downgrades of Greek national debt and a slowdown in activity figures. This falls into our belief that the euro will weaken markedly against its main competitors in 2010. Sterling continues to knock against the 1.13 level and we could see this level broken this week.
There are risks to sterling this week and given the recent dollar strength we believe we could see GBPUSD through the 1.60 level. This will mainly be down to dollar strength as investors jump into haven positions over the holidays. This should theoretically unwind in Jan however.
The data calendar is today is fairly light and as such equity and risk flows will determine FX movements; we would expect the dollar to strengthen today.
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Latest Exchange Rates At Time Of Writing
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Indicative Rates
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Sell
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Buy
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GBP/EUR
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1.1251
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1.1278
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GBP/USD
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1.6113
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1.6138
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EUR/USD
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1.4292
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1.4314
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GBP/JPY
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145.70
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146.00
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GBP/AUD
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1.8233
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1.8258
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GBP/NZD
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2.2748
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2.2782
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GBP/CAD
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1.7228
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1.7262
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NZD/USD
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0.7072
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0.7092
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GBP/ZAR
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12.27
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12.32
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USD/ZAR
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7.6096
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7.6454
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GBP/PLN
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4.7040
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4.7586
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EUR/JPY
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129.41
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129.63
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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.q
To view any past or present currency blogs please click on the following link www.worldfirst.com/blog.
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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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