The pound was given a hint of respite yesterday as profit takers cut those positions that had pushed it so low.
This was also seen on equity markets as, due to the lack of economic data, speculators had to make the momentum themselves and in turn cut profitable positions and banked their gains.
The Bank of England once again shook confidence in sterling yesterday with comment from its Quarterly Report. They explained the recent falls as ‘It is possible that sterling’s depreciation may be part of a more prolonged process of rebalancing of the UK economy, generating a fall in the long-run sustainable real exchange rate’ and “The financial crisis may have led overseas investors to reasses their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit. As a result, the long-run sustainable real sterling exchange rate … may have fallen.”
Needless to say both of these comments are pretty sterling negative.
The data calendar is once again light today. We have had news from New Zealand which has propelled the NZD to new heights. Kiwi current account balance was a lot better than expected and moved back into positive territory at $0.124bn.
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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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1.10
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1.1027
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GBP/USD
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1.6271
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1.6295
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EUR/USD
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1.4772
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1.4792
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GBP/JPY
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148.38
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148.87
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GBP/AUD
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1.8609
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1.8636
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GBP/NZD
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2.2563
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2.2600
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GBP/CAD
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1.7403
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1.7441
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NZD/USD
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0.7205
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0.7225
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GBP/ZAR
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12.05
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12.11
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USD/ZAR
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7.39
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7.43
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GBP/PLN
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4.5693
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4.5993
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EUR/JPY
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134.95
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135.12
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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.
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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