Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
 
  Daily Currency News Euro US Dollar Educational Articles  
 
Posted February 25th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 25th February 2008

 

Sterling lost ground following our beloved governments decision to nationalise Northern Rock. Not a great outcome but it will hopefully draw a line under a very damaging event to the UK’s reputation. Sterling has lost significantly against most if not all currencies since the problems at Northern Rock were made public. The Bank of England still has other problems not least of which is the conflict between rising costs and a faltering UK economy. The minutes of the BOE’s last meeting highlighted this conflict and as a result, the market has tempered its expectations as to the speed and extent of UK interest rate reductions. I still believe sterling is oversold [i.e. sterling should strengthen over the medium term but the reality could be a lot different]. Also beware of another major shock like Northern Rock as we would see sterling slide rapidly.

 

The US$ has gained and then lost ground against sterling over the last week and now sits at US$1.962 inter bank. Difficult to think of anything new to say about the US. Huge problems with a faltering economy and a financial sector full of uncertainty. Not dissimilar to the UK. I suspect the news flow will get [a lot] worse before it gets better. Further interest rate cuts are a distinct possibility.

Leave a Reply

Posted February 18th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 18th February 2008

Sterling again held the middle ground. The Governor of the Bank of England highlighted the problem of rising costs and a faltering UK economy. UK Inflation could be as high as 3% by year end whereas the target is 2%. As a result, the market has tempered its expectations as to the speed and extent  Continue Reading…

Posted February 11th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 11th February 2008

Sterling held the middle ground this week. The Bank of England reduced UK interest rates by 0.25% which was as expected. The UK economy continues to suffer with weakening demand and continued disruption to the financial markets. UK manufacturing output fell in December which was contrary to expectations. However, inflation continues to exceed the target  Continue Reading…

Posted February 4th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 4th February 2008

  Sterling had been doing okay until Friday of last week when it lost ground against most currencies. It seems to have been a culmination of the weeks woes; bad housing figures, inflation forecast to be over 3% [target is 2%] plus the fact that the market expects the Bank of England to cut UK  Continue Reading…

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus