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Posted January 28th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 28th January 2008

 

Sterling continues to gather friends. Not enough friends for a party but a great improvement when compared to two weeks ago. The minutes of the last Bank of England meeting were announced and showed that the BOE was still focussed on combating inflation and a key control is UK interest rates. The market still expects UK interest rates to be reduced but one suspects that unless something like a new Northern Rock happens the cuts will be made in 0.25% steps over a period and in a considered manner. Otherwise UK news was dominated by news from elsewhere. So given the uncertainty either way I would suggest that to buy or sell euros makes sense so as to be very sure of what your costs are or what you are going to get.

 

The US$ had an entertaining week and sits at US$1.981/£1 inter bank. The Fed Chief surprised the market last Tuesday by reducing US interest rates by 0.75%. This had been “expected/hoped for” by the market given the need to stave off recession in the US. More cuts in US interest rates are expected and I wonder if in order to avoid falling into recession US interest rates will need to head back to 1%.

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Posted January 21st, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 21st January 2008

    Sterling  isn’t as friendless as it was last week. Still not the belle of the ball but at least the occasional glimmer of interest. The fate of sterling was more influenced by what was happening elsewhere rather than here in the UK. Still significant problems given the parlous state of the UK economy  Continue Reading…

Posted January 14th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 14th January 2008

    Sterling continues to be friendless. The Bank of England kept UK interest rates on hold. The BOE have a very difficult balancing act. The economy is suffering but inflation is on the up. We have seen sterling lose 10% plus against the Euro in a very short period in time. This will help  Continue Reading…

Posted January 7th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 7th January 2008

  Sterling seems to have no friends.  Has Gordon Brown finally been found out? The UK has both a balance of payment and a budget deficit both of which need to be funded. With UK interest rates falling this is proving to be somewhat difficult and it is very difficult to gauge where the bottom  Continue Reading…

Posted January 2nd, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 1st January 2008

    Sterling seems to have no friends.  Has Gordon Brown finally been found out? The UK has both a balance of payment and a budget deficit both of which need to be funded. With UK interest rates falling this is proving to be somewhat difficult and it is very difficult to gauge where the  Continue Reading…

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