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Posted June 30th, 2008 by Charles Purdy

US$ rates and comments – week commencing 30th June 2008

 

Sterling sentiment hasn’t changed over the last few weeks. Problems still abound with UK inflation high and the UK economy slowing. The housing market is still suffering and as the credit crunch continues to bite, mortgage approvals have fallen significantly, we are far from seeing an end to the uncertainty. The Bank of England meets this week and the expectation that given the current diverse position noted above they will sit on their hands and keep UK interest rates unchanged. Do they have any other option? Probably not and I expect steady as she goes for a while.

 

The US$ sits at US$1.995/£1 inter bank having lost ground on the back of the Fed meeting last week in which they kept US$ interest rates on hold. This wasn’t a surprise but it was the lack of insight as to future direction on interest rates in the accompanying statement that left the market wondering and worrying. Rhetoric from senior US officials over the last few weeks had supported a strengthening US$ but given the lack of support from the Fed statement the market took this support to be somewhat hollow. Hence the fall in the US$.

 

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Posted June 24th, 2008 by Charles Purdy

Weekly US$ rate and comments – week commencing 23rd June 2008

    Sterling maintained its “steady as she goes” stance although there have been a few waves along the way. First was the open letter from the Bank of England to the Government explaining why inflation was over 3% when the target was 2%. The problems are that the main factors affecting inflation, energy and  Continue Reading…

Posted June 23rd, 2008 by Charles Purdy

US$ rates and comments – week commencing 23rd June 2008

  Sterling maintained its “steady as she goes” stance although there have been a few waves along the way. First was the open letter from the Bank of England to the Government explaining why inflation was over 3% when the target was 2%. The problems are that the main factors affecting inflation, energy and food  Continue Reading…

Posted June 16th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 16th June 2008

Sterling continues to be “steady as she goes”. Over the last few weeks there has been little downward movement which suggests that sterling has found a base from which it may strengthen. The only worry is if we have another shock such as a Northern Rock. UK inflation is the major concern. Not just here  Continue Reading…

Posted June 9th, 2008 by Charles Purdy

Weekly US$ rates and comments – week commencing 9th June 2008

  No major movements for sterling in the last week, losing a bit of ground against some currencies and gaining a bit of ground against others. The Bank of England met and decided to keep interest rates on hold. This was very much as expected. The BOE’s choices are somewhat limited as UK inflation is  Continue Reading…

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