Foreign Exchange - UK Daily Update - Thursday, August 28, 2008 7:23 - 0 Comments

World First’s Morning FX Update – 28th August 2008

Dollar has slackened overnight against the euro however it continues to corkscrew lower against the British pound. Fears over the path of Hurricane Gustav in the Gulf of Mexico saw oil jump higher yesterday yet dollar was underpinned by a strong durable goods figure.

The euro joined in on the recent spate of sterling bashing yesterday as two ECB council members released some hawkish comments. Axel Weber stated that any talk of lower interest rates in the EU was premature while Member Papademos advised that should a wage-price spiral emerge in Europe then rates should be raised to combat the ensuing effects.

On a trade weighted basis Sterling is now at a 12 year low; a decline backed up by the publication of this morning’s Nationwide house price data. Prices have fallen by the single largest monthly amount since the building society started their surveys in 1991. There is also a report in The Guardian this morning in which a recession for the entire of 2009 is expected.  

Indicative Rates
	Sell	Buy
GBPEUR	1.2419	1.2444
GBPUSD	1.8373	1.8395
EURUSD	1.4767	1.4800
GBPJPY	199.71	200.44
GBPAUD	2.1172	2.1223
GBPNZD	2.6007	2.6061
GBPCAD	1.9173	1.9234
GBPZAR	14.17	14.22
USDZAR	7.70	7.74
GBPPLN	4.1494	4.1749
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.