Foreign Exchange - UK Daily Update - Monday, September 1, 2008 7:34 - 0 Comments

World First’s Morning FX Update – 1st September 2008

Sterling is at a record low against the euro after the Chancellor gave an interview which left the prospects for the UK economy as dark as his eyebrows. Alistair Darling said that the UK economy might be in the worst downturn for 60 years; this already after a week of sterling weakness that has left all GBP crosses at recent or record lows.

GBP is also at a fresh 2 year low against the dollar this morning as strong data on friday stabilised the greenback. It is a US holiday today and as such we expect a fairly quiet day. That is more than can be said for the residents of the Gulf Coast as Hurricane Gustav bears down on them. Oil markets may be exceptionally volatile in coming days as the storm sweeps through and the true scale of the damage to the local infrastructure is revealed; should we see platforms and refineries shut down and pipelines severed expect the dollar to shrink back from its recent highs. 

Indicative Rates
	Sell	Buy
GBPEUR	1.2318	1.2344
GBPUSD	1.8048	1.8072
EURUSD	1.4634	1.4656
GBPJPY	195.31	196.00
GBPAUD	2.1118	2.1168
GBPNZD	2.5874	2.5927
GBPCAD	1.9250	1.9327
GBPZAR	13.94	14.00
USDZAR	7.71	7.74
GBPPLN	4.1025	4.1308
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.   

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.