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Posted March 31st, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 31st March 2008

 

Sterling lost a bit of ground against the safe haven currencies as expectations of a UK interest rate reduction grew. This was on the back of the Bank of England confirming that funding problems were critical and that they were willing to both make additional liquidity available [i.e. make cash available to the banks] and interest rates more accommodative [i.e. reduce them]. Funding problems are hurting the mortgage market with less cash available and lending rates being increased. Annual house price increases are non existent [at best]. So sterling potters along with no real upside potential, short to medium term, especially against the safe haven currencies.

 

 

The US$ sits at US$1.985/£1 inter bank. At the start of the week the US$ was pushing towards all time lows against the Euro but towards the end of the week has benefited from US$ repatriation as we approach the end of the first quarter. Impossible to identify any good news from the US with which to offer longer term solace. Consumer confidence is shot, house prices and the stock market are falling and the Fed is desperately working/hoping that there are no further bank bailouts. Not a good time for the US$. However, does the UK look any brighter. Probably not, so don’t expect sterling to gain against the US$.

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Posted March 24th, 2008 by Charles Purdy

US$ rates and comments – week commencing 24th March 2008

    A strange week for sterling last week. You would have thought that sterling would gain against the US$ as the investment bank that had to be saved ten days ago was American. No, the markets seemed to take the view that as the UK was so dependent on the financial sector and the  Continue Reading…

Posted March 24th, 2008 by Charles Purdy

US$ rate and comments – week commencing 24th March 2008

    A strange week for sterling last week. You would have thought that sterling would gain against the US$ as the investment bank that had to be saved ten days ago was American. No, the markets seemed to take the view that as the UK was so dependent on the financial sector and the  Continue Reading…

Posted March 17th, 2008 by Charles Purdy

US$ rates and comments – week commencing 17th March 2008

    Times continue to be interesting given the problems in the US and gold and gas reaching record prices. The UK budget was held last week. Nothing much happened as the Chancellor has some fairly simple and fundamental problems. The UK economy is not growing as quickly as hoped/wished for and tax revenues are  Continue Reading…

Posted March 10th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 10th March 2008

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