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Posted December 23rd, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 24th December 2007

 
 

Sterling has had a bad week. First the minutes of the last Bank of England interest rate meeting were released and showed that the vote to reduce interest rates was unanimous. This surprised the market. Then the balance of payment figures were released. These were very bad with a huge net outflow of funds from the UK. And now the Christmas retail period is not going as well as hoped and house prices continue to fall in most places. All doom and gloom so it is not a surprise that sterling is suffering. Sterling only seemed to make a gain against the South African rand. Shows how the market views the new head of the ANC in South Africa! But I suppose they did win the rugby world cup.

 

The € is still the preferred currency and sits at €1.382/£1 inter bank. Inflation continues to be of concern to the European Central Bank. So any cuts in € interest rates are very unlikely short to medium term. But clearly the credit crunch is having an affect on Euro land as the ECB lent €350 billion to financial institutions last week who were having difficulty borrowing elsewhere. And I still feel that Euro land cannot be immune to the slow down elsewhere. Talking to one of my clients who does a lot of business in Euro land he said there was a lot of pain being suffered by Euro land exporters given the strong € exchange rate.

 

ALL THE VERY BEST FOR 2008.

 

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Posted December 17th, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 17th December 2007

  Sterling has been steady and has gained against most currencies apart from the US$. Economic news has been mixed with pressure on house prices and sales volume countered by a surge in production price inflation. The latter means that the market has become unsure on future cuts in UK interest rates. The central banks  Continue Reading…

Posted December 10th, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 10th December 2007

  Sterling lost ground against everything this week. The Bank of England cut UK interest rates by 0.25%. A slight surprise but on the back of weak economic data, including falling house prices and poor retail sales, better to start the cuts earlier rather than too late. There will be further reductions in UK interest  Continue Reading…

Posted December 2nd, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 3rd December 2007

Sterling had another steady week. The Bank of England is giving mixed messages. It is concerned about inflation but at the same time concerned about the slowing UK economy. House prices are falling while fuel costs are going up. The market is confident the BOE will cut UK interest rates but is unsure when. Some  Continue Reading…

Posted November 26th, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 26th November 2007

  Sterling had a steady week. The Bank of England minutes were released last week which showed there had been a 7 to 2 vote in favour of keeping UK interest rates on hold. The UK economy is certainly slowing but that is no different from others. Property prices are softening. There will be reductions  Continue Reading…

Posted November 19th, 2007 by Charles Purdy

Weekly Euro rates and comments – week commencing 19th November 2007

  Sterling had a poor week. The Governor of the Bank of England stated that economic growth next year was going to be poor and that UK interest rates were going to be reduced. Retail figures were also poor and the net effect was that sterling lost ground against both the Euro and the US$.  Continue Reading…

Posted November 10th, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 12th November 2007

    Sterling had a mixed week losing ground against the Euro but gaining against other currencies such as the US$ and the high interest rate currencies such as the Australian $. The Bank of England kept UK interest rates on hold which was expected and we now wait for the minutes of the meeting  Continue Reading…

Posted November 5th, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 5th November 2007

  Sterling did okay this week. Various members of the Bank of England made comments that the UK was suffering a slowdown rather than anything worse [at this time] and this has led the market to believe that any UK interest rate cuts are unlikely until next year. This has lent some support to sterling  Continue Reading…

Posted October 29th, 2007 by Charles Purdy

Weekly € rates and comments – week commencing 29th October 2007

    Not a great week for sterling losing ground it seems against everything apart from the US$. The Bank of England warned that the UK remained vulnerable to shocks from the global credit squeeze which isn’t a surprise and certainly wasn’t a help to sterling. The housing market continues to suffer here in the  Continue Reading…

Posted October 21st, 2007 by Charles Purdy

€ rates and comments – 22nd October 2007

Sterling is holding its own. The minutes of the last Bank of England meeting were released and the vote had been 8 to 1 to keep UK interest rates on hold. The credit crunch was obviously a concern but inflation is still a worry to the BOE. The last inflation figure of 1.8% was within  Continue Reading…

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