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Posted September 24th, 2007 by Charles Purdy

Weekly US$ exchange rates and comments – week commencing 24th September 2007

 
 

A very difficult week for sterling. The Northern Rock saga dragged on and even when the government stepped in to secure the savers funds, the U-turn by the Bank of England in pumping additional liquidity into the market led to further pressure on sterling. Some semblance of stability seems to have returned by the end of the week. I still think that sterling is over sold [i.e. too low] but, short term, any bad news will have a greater effect than good news.  Looks like a good time to repatriate funds to the UK.

 

The US$ is sitting at US$2.027/£1 inter bank. The Fed made a pre emptive strike by cutting interest rates by 0.50% which was higher than expected and has given some comfort to the market. However the US$ is going to be under pressure for the foreseeable future. There are significant economic problems and a recession is possible. Oil continues to hit all time highs. So I see no respite for the US$ in the short or medium term.

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Posted September 20th, 2007 by Charles Purdy

Weekly US$ rates and comments – week commencing 17th September 2007

Northern Rock did for sterling. Even though Northern Bank is profitable it got caught by having short term funding to cover long term loans to clients. Given the credit crunch it found it very difficult to borrow from the inter bank market. Other banks are having to hoard cash for the huge amounts of funds  Continue Reading…

Posted September 11th, 2007 by Charles Purdy

Weekly US$ rates and comments – Week commencing 10th September 2007

  We still live in interesting times. The banks are very cautious about lending to each other as they are still unsure where the losses relating to the bad US home loans finally end up. Also the banks are having to hoard cash as they are likely to find it very difficult to offload all  Continue Reading…

Posted September 10th, 2007 by Charles Purdy

Weekly US$ rates and comments – week commencing 10th September 2007

We still live in interesting times. The banks are very cautious about lending to each other as they are still unsure where the losses relating to the bad US home loans finally end up. Also the banks are having to hoard cash as they are likely to find it very difficult to offload all the  Continue Reading…

Posted September 3rd, 2007 by Charles Purdy

Weekly US$ Rates and Comments – Week commencing 3rd September 2007

The markets became a bit calmer in the last few days as the news flow was less scary. But we shouldn’t get complacent as I suspect there are still significant problems out there just waiting to see the light of day and when they do the markets will move very very quickly. Debt funding is  Continue Reading…

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