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Posted March 31st, 2008 by Charles Purdy

€ rates and comments – week commencing 31st March 2008

Sterling lost a bit of ground against the safe haven currencies as expectations of a UK interest rate reduction grew. This was on the back of the Bank of England confirming that funding problems were critical and that they were willing to both make additional liquidity available [i.e. make cash available to the banks] and interest rates more accommodative [i.e. reduce them]. Funding problems are hurting the mortgage market with less cash available and lending rates being increased. Annual house price increases are non existent [at best]. So sterling potters along with no real upside potential, short to medium term, especially against the safe haven currencies.


The € is very much the safe haven asset of the moment and sits at €1.258/£1. Business confidence continues to be strong in Germany and also, surprisingly, in France. The European Central Bank continues to highlight the importance of its fight against inflation so no chance of cuts in Euro land interest rates any time soon. So don’t expect any gains for sterling against the € any time soon.


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Posted March 24th, 2008 by Charles Purdy

€ rates and comments – week commencing 24th March 2008

  A strange week for sterling last week. You would have thought that sterling would gain against the US$ as the investment bank that had to be saved ten days ago was American. No, the markets seemed to take the view that as the UK was so dependent on the financial sector and the pre-eminent  Continue Reading…

Posted March 17th, 2008 by Charles Purdy

€ rates and comments – week commencing 17th March 2008

  Times continue to be interesting given the problems in the US and gold and gas reaching record prices. The UK budget was held last week. Nothing much happened as the Chancellor has some fairly simple and fundamental problems. The UK economy is not growing as quickly as hoped/wished for and tax revenues are less  Continue Reading…

Posted March 10th, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 10th March 2008

  Sterling gained some ground against most currencies. The Bank of England kept UK interest rates on hold which was very much as the market expected. In February, UK consumer confidence continued to fall but the UK services sector did better than expected. This conflicting data highlights how difficult a job the BOE has. Cuts  Continue Reading…

Posted March 3rd, 2008 by Charles Purdy

Weekly Euro rates and comments – week commencing 3rd March 2008

  UK economic news continues to be poor including UK consumer confidence, slowing house price inflation and fourth quarter growth that looked over reliant on government expenditure. However, most of the main “stories” came from elsewhere and because of this sterling’s fate was a one of contrast gaining against some currencies and losing against others.  Continue Reading…

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