Foreign Exchange - UK Daily Update - Tuesday, August 26, 2008 6:40 - 0 Comments

World First’s Morning FX Update – 26th August 2008

Dollar capitalised yesterday on the UK bank holiday by strengthening further in the ensuing low volumes. The recent trend has been towards a stronger greenback and a continuation of this is expected in the medium term. Data has also started to support this as existing home sales jumped 3.1% in June with lower prices allowing customers to bargain hunt. Dollar however seems to have shrugged off Warren Buffett’s comments about Fannie Mae and Freddie Mac. The ‘Sage of Omaha’ told reporters on Friday that he believed the shareholder value from stock in the 2 mortgage syndicates were negligible.

The news from the EU however is due to remain gloomy as various data readings reporting on the confidence that businesses have in the economy as a whole are set to fall. German IFO is out this morning alongside Germany’s GDP report for Q2. We believe IFO may fall sharply however GDP will stay in and around estimates of a 0.5% fall.

As you can see from the table below GBP/USD has once again rode roughshod through another resistance level which would suggest another downwards leg.

Indicative Rates
	Sell	Buy
GBPEUR	1.2545	1.2571
GBPUSD	1.8420	1.8444
EURUSD	1.4665	1.4689
GBPJPY	201.85	202.51
GBPAUD	2.1472	2.1523
GBPNZD	2.6546	2.6609
GBPCAD	1.9369	1.9426
GBPZAR	14.29	14.35
USDZAR	7.75	7.79
GBPPLN	4.1470	4.1739
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.