Foreign Exchange - UK Daily Update - Friday, September 26, 2008 7:22 - 0 Comments

Volatility Continues As World Waits – World First’s Morning FX Update – 26th September 2008

It was once again a supremely volatile day on dollar crosses as the continued wrangling over the Treasury’s bail-out proposal dominated news flow. Early in the afternoon Chris Dodd, Chairman of the Senate Banking Committee told a gaggle of reporters that a tentative accord had been reached by both parties although he later added that we may not see a signed bill until next week. The greenback strengthened markedly as a result, ploughing through established support levels. Dollar sellers however will not be popping champagne corks however as Republicans reiterated their concerns over the role of the government in the financial services sector. A counterproposal put forward by the rebels was swiftly smothered at birth by Hank Paulson however. Policymakers will meet again today and try and hammer out a compromise.

Dollar was also hurt by the news that another bank has fallen over. Washington Mutual was bought by JPMorgan for $1.9bn in what is being hailed as the biggest ever commercial bank failure. Euro and Sterling however are still unable to make real gains in the wake of these alarming developments as weak data provides little support.

All eyes will be on the US today, mainly on Capitol Hill, but also on GDP and consumer confidence figures.

Have a great weekend.

Indicative Rates
	Sell	Buy
GBPEUR	1.2563	1.2589
GBPUSD	1.8368	1.8393
EURUSD	1.4603	1.4626
GBPJPY	193.80	194.61
GBPAUD	2.2117	2.2169
GBPNZD	2.6748	2.6804
GBPCAD	1.9002	1.9023
NZDUSD	0.6847	0.6877
GBPZAR	14.97	15.03
USDZAR	8.14	8.18
GBPPLN	4.2050	4.2325
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.