A quiet Friday ended a busy week of movement in the FX markets as further fears for the pound materialized.
The Centre for Economic and Business Research forecasted over the weekend that interest rates here in the UK will stay at 0.5% into 2011 and not reach the 2% level until at least 2014 with the pound falling to below $1.40 against the US dollar and below parity against the euro. The report also forecast that quantitative easing would be expanded past the current level of £175bn and that assets sales will not be rolled back until 2014.
This, alongside news that Gordon Brown is looking to sell the Tote, the Dartford crossing and the channel tunnel rail link to raise £3bn, has sent sterling tumbling lower this morning.
We do, and have been, forecasting further falls for sterling and this could be the week that does it. Data today is quiet and it is a bank holiday in the US so happy Columbus Day to all our US readers.
You can also follow us live on Twitter at http://twitter.com/World_First
|
Latest Exchange Rates At Time Of Writing
|
|
Indicative Rates
|
Sell
|
Buy
|
|
GBP/EUR
|
1.0705
|
1.0731
|
|
GBP/USD
|
1.5729
|
1.5753
|
|
EUR/USD
|
1.4677
|
1.4697
|
|
GBP/JPY
|
142.07
|
142.35
|
|
GBP/AUD
|
1.7480
|
1.7530
|
|
GBP/NZD
|
2.1626
|
2.1679
|
|
GBP/CAD
|
1.6401
|
1.6437
|
|
NZD/USD
|
0.7260
|
0.7280
|
|
GBP/ZAR
|
11.74
|
11.78
|
|
USD/ZAR
|
7.45
|
7.49
|
|
GBP/PLN
|
4.57
|
4.6072
|
|
EUR/JPY
|
132.63
|
132.90
|
|
Rates are dependent on amount transacted. Please call 0207 801 9080 for a live rate quote.
|
|
|
|
|
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.
|
|
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.
Please click here if you would like to stop receiving the World First Morning Update.
|
|
Leave a Reply