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Posted April 28th, 2008 by Charles Purdy

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

A bit like the previous week sterling had a good end to the week. The major factor at the end of last week was weakness in German business confidence. Also the minutes of the last Bank of England meeting were released and they showed that two members of the committee voted against reducing UK interest rates which was a surprise. So relative to the last few months the last two weeks have seen a bit of stability for sterling. How long this will last or if this is the base for sterling from which to regain lost ground is too soon to say.


The US$, which sits at US$1.981/£1 inter bank, is getting support from the growing conviction that the Fed will stop reducing US interest rates after the end of this month. This is in contrast to the UK and Euro land where the expectation is for interest rate reductions whether in the short or long term respectively. Also there was an unexpectedly large fall in US jobless claims which has also supported the US$. The US is far from being out of the woods but the feeling in the market is that there is upside given the rapid action of the Fed in cutting rates earlier this year.

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Posted April 21st, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 20th April 2008

  Sterling had a good end to last week. A couple of factors seemed to benefit sterling. Firstly the Royal Bank of Scotland is expected to announce a rights issue which indicates that UK banks have started to restore their balance sheets. Also it is thought that the Government is set to announce plans to  Continue Reading…

Posted April 14th, 2008 by Charles Purdy

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

    No joy for sterling last week. The Bank of England cut UK interest rates by 0.25% which was as expected. However from the announcement which accompanied the cut the BOE warned that the credit problems were beginning to effect more than just the financial market. So where to from here. I suspect further  Continue Reading…

Posted April 7th, 2008 by Charles Purdy

US$ rates and comment – week commencing 7th April 2008

    Over the course of last week sterling held steady against most other currencies. The availability of mortgages continues to be a problem for the housing market as the banks take the classic approach in such times by restricting supply and improving margins. Probably making the same money with a lot less risk. Business  Continue Reading…

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