Posts Tagged ‘obama’
Foreign Exchange - UK Daily Update - Tuesday, March 31, 2009 8:04 - 0 Comments
Auto makers get backhanded – World First Morning Update – 31st March 2009
All this and more is available on our video blog at http://uk.youtube.com/user/WorldFirstJC
On this day 109 years ago, the first ever advertisement for cars was published in the Saturday Evening Post magazine, marking the start of the age of the automobile industry. Yesterday saw the American automobile industry turn another corner in history, this one far bleaker.
The Obama administration refused to extend GM and Chrysler any further financial aid, giving them 60 and 30 days respectively to come up with new plans, or risk structured bankruptcy. This was combined with comments that US banks may need more capital to see out the crisis, which as expected had a negative impact on risky assets, sending equities spiralling across the globe. The US dollar and Yen benefited from the increase in risk aversion, while commodity currencies (AUD, NZD, CAD) gave up some of their recent gains, as investors took shelter
Sterling managed slight gains against the Euro over the day; however it was a case of the lesser of two evils as both regions were involved in yet another round of bailouts over the weekend. Equity markets absorbed news that the UK government had stepped in to rescue Dunfermline, the Scottish building society, while Germany and Spain were involved in their own bailouts over the weekend. The pain didn’t stop there for Spain, as a preliminary indicator showed that inflation had slipped into negative territory, raising fears of deflation within the Euro zone. Mortgage ledning was also above expectations in the UK, a positive signal for sterling.
The only major data out today is from the US, where we expect Chicago PMI and consumer confidence readings. The consumer confidence measure may contain some upside potential, considering equities excellent run of late. We also look to see how the market reacts to the news that Barclays will not receive assistance under the UK government’s assets protection scheme, after banking stocks were punished yesterday
Click here for the video link.
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Indicative Rates |
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|
|
Sell |
Buy |
|
GBPEUR |
1.0798 |
1.0826 |
|
GBPUSD |
1.4313 |
1.4339 |
|
EURUSD |
1.3237 |
1.3259 |
|
GBPJPY |
140.45 |
141.04 |
|
GBPAUD |
2.0790 |
2.0847 |
|
GBPNZD |
2.5128 |
2.5202 |
|
GBPCAD |
1.7961 |
1.8030 |
|
NZDUSD |
0.5673 |
0.5706 |
|
GBPZAR |
13.79 |
13.84 |
|
USDZAR |
9.61 |
9.69 |
|
GBPPLN |
5.0876 |
5.1064 |
|
EURJPY |
129.85 |
130.46 |
|
Rates are dependent on amount transacted |
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Please feel free to contact me (rick.roache@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.
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