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Posted October 27th, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 27th October 2008

Conditions went from bad to worse for sterling last week. On the release of poor GDP figures on Friday, which were widely expected to show the UK economy contracting over the last quarter, the pound went to a new record low against the euros and slipped further down against the US$. Considering that the poor GDP figures and the comments earlier in the week from Mervin King and Gordon Brown which did the damage to sterling did not tell us anything we didn’t already know it was perhaps further testament to how volatile market conditions continue to be. The Bank of England’s minutes from their meeting this month were released and showed the members to be unanimous in their decision to cut rates a fortnight ago. The growing likelihood and speculation is that UK interest rates will be down to as little as 3% by the middle of 2009.

 

In spite of the positive movement against sterling, the euro, currently at 1.24/£1, had a relatively poor run last week and has, like sterling, fallen lately on the increasing speculation that interest rates will be cut in the coming months, some speculating that they will be as low as 2% by the middle of 2009. Euro Purchasing Managers index figures which showed the recent and somewhat rapid decline of the European economy was also a main contributor to the sharp fall of the euro in the markets.

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Posted October 20th, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 20th October 2008

After a positive start to the week which saw sterling make gains against the euro and US$, sterling only managed to maintain similar trading levels to previous weeks. The start of the week benefited from renewed confidence born from the UK treasury’s cash injection to the high-street banks and lending markets. There was unprecedented volatility  Continue Reading…

Posted October 14th, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 13th October 2008

In yet another historic five days on the UK markets, where the FTSE posted its biggest ever weekly loss, sterling fell against the euro and the US$ throughout last week. The co-ordinated cut in interest rates by the Bank of England, the European Central Bank (ECB) and The US Federal Reserve (the Fed) of half  Continue Reading…

Posted October 6th, 2008 by Charles Purdy

Weekly € rates and comments – week commencing 6th October 2008

Sterling left it late in the week but gained sharply against the euro on Friday. The pound surged to its highest levels for some months largely thanks to an injection of £40bn from the Bank of England to help with the liquidity issues which are causing so much turmoil in the UK financial sector. There  Continue Reading…

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