The FOMC held rates in the US yesterday at 2.0% and made noises that we would not see hikes in the base rate until 2009. The focus of the accompanying statement was on growth and the obvious threats to that although they acknowledged that inflation was a ‘significant concern’. Dollar was able to hold the gains it made over the course of the day fuelled by further falls on oil markets and better than expected news from the domestic services sector.

Sterling was put under pressure by both the dollar and euro overnight by publication of the Nationwide Consumer Confidence survey which posted yet another record low.

Looking forward to today we have a slew of earnings figures from European and British financial institutions such as Commerzbank, Munich Re and Old Mutual. There are also 2 pieces of economic data to watch out for; UK’s BRC Shop Prices (10.30) and MBA Mortgage Applications from the US (12.00)

———————-

 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.   

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.