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Posted June 30th, 2008 by Charles Purdy

€ rates and comments – week commencing 30th June 2008

 

Sterling sentiment hasn’t changed over the last few weeks. Problems still abound with UK inflation high and the UK economy slowing. The housing market is still suffering and as the credit crunch continues to bite, mortgage approvals have fallen significantly, we are far from seeing an end to the uncertainty. The Bank of England meets this week and the expectation that given the current diverse position noted above they will sit on their hands and keep UK interest rates unchanged. Do they have any other option? Probably not and I expect steady as she goes for a while.

 

The Euro which sits at €1.263 inter bank has held steady against sterling. The European Central Bank meets this week and is expected to increase € interest rates by 0.25%. This is on the back of high Euro land inflation. However Euro land economic conditions seem to be worsening quicker than expected and this will act as a “natural” break on inflation. It would be a real surprise if rates were not increased but this increase should be the last for the foreseeable future.

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Posted June 23rd, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 23rd June 2008

    Sterling maintained its “steady as she goes” stance although there have been a few waves along the way. First was the open letter from the Bank of England to the Government explaining why inflation was over 3% when the target was 2%. The problems are that the main factors affecting inflation, energy and  Continue Reading…

Posted June 16th, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 16th June 2008

    Sterling continues to be “steady as she goes”. Over the last few weeks there has been little downward movement which suggests that sterling has found a base from which it may strengthen. The only worry is if we have another shock such as a Northern Rock. UK inflation is the major concern. Not  Continue Reading…

Posted June 9th, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 9th June 2008

  No major movements for sterling in the last week, losing a bit of ground against some currencies and gaining a bit of ground against others. The Bank of England met and decided to keep interest rates on hold. This was very much as expected. The BOE’s choices are somewhat limited as UK inflation is  Continue Reading…

Posted June 2nd, 2008 by Charles Purdy

€ rates and comments – week commencing 2nd June 2008

  Sterling had another steady week last week. UK house prices still continue to fall while fuel and food costs continue to rise. Consumer confidence is fragile. Not good. However a lot of bad news has already been factored into sterling’s exchange rate against most other currencies.  The key is for there to be no  Continue Reading…

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