Foreign Exchange - UK Daily Update - Wednesday, September 24, 2008 7:41 - 0 Comments

Fears over Bail Out Continue – World First’s Morning FX Update – 24th September 2008

The testimonies of Ben Bernanke and Hank Paulson did little to embolden markets yesterday as fears over the long term economic implications of the bail-out package continue to swirl through Congress. Dollar remained shifty and was unable to take advantage of 2 pieces of negative data that would, in previous weeks, have seen the greenback strengthen markedly. Eurozone PMI for the manufacturing sector was a tad lighter than we expected and has allowed sterling to jump back into the 1.26s even after being marked down by comments from the MPC’s perennial dove David Blanchflower who said the BOE must cut rates ‘decisively and soon’.

Equity market futures were higher overnight as news was released that the ‘Sage of Omaha’ Warren Buffett has invested $5bln into Goldman Sachs. This is a great deal for both as Buffett is guaranteed a 10% dividend yearly and this influx of cash will help ‘the smartest bank on the street’ get through this latest bout of credit crisis.

It is once again a quiet day on the data front although we may see euro dip early in the day as the German IFO Business Climate reading is forecast to be lower.

Indicative Rates
	Sell	Buy
GBPEUR	1.2629	1.2655
GBPUSD	1.8550	1.8574
EURUSD	1.4658	1.4681
GBPJPY	196.73	197.47
GBPAUD	2.2159	2.2210
GBPNZD	2.7157	2.7212
GBPCAD	1.9170	1.9232
NZDUSD	0.6806	0.6838
GBPZAR	15.07	15.13
USDZAR	8.12	8.16
GBPPLN	4.1703	4.1990
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. 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.