Foreign Exchange - UK Daily Update - Written by rick on Thursday, July 23, 2009 7:15 - 0 Comments
World First Foreign Exchange - 23 July 2009 - Bank of England minutes benefit the pound’s cause
Minutes from the last Bank of England meeting boosted sterling in Wednesday’s trading, as it was revealed the committee was unanimous in both its decision to leave interest rates at 0.5%, and to maintain the asset purchase scheme at £125bn.
Notes from the meeting were the talking point, as they added that growth risks were diminishing and admitted inflation was consistently higher than expected. Comments like these are always a sterling positive, as it reduces the chance of further dilution of the money supply, and therefore the value of sterling.
The FTSE and its European partners in crime the CAC and DAX extended their dream run of positive returns into eight straight days, the euro forging on against the dollar to hold near 7 week highs.
Emerging market and commodity currencies were also testing higher grounds, the New Zealand dollar touched 9 month highs versus the dollar while the South African Rand climbed on the back of a minor rally in gold.
Ben Bernanke wasn’t moving markets as much as normal as he was under the hammer again for day two of his grilling on Capitol Hill, largely trying to win support for re-election next term, but also justifying actions taken during the worst of the crisis. Equities were lower as Morgan Stanley reported a loss of $159m, not stacking up with analyst expectations, difficult to do after the bar was raised last week by Goldman Sachs and JP Morgan earnings. A positive US house price reading failed to lift the dampening sentiment
Today’s data from the UK sees how retail sales figures are looking, the EU chips in with current account figures and the US rounds off the day with initial jobless and more housing data, this time existing home sales.
World First’s Twitter page is up and running and we will be live ‘tweeting’ the impact of all these data releases and how they affect the markets. Click below for up-to-date news on all things currency. The address is http://twitter.com/World_First
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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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