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Posted August 24th, 2009 by Charles Purdy

Weekly US$ rates and comments – week commencing 24th August 2009

With few significant economic data releases during last week and a tentative air in the markets at present sterling merely continued in its downward trajectory, making marginal losses against most major currencies. However, a slight increase in risk-appetite and business confidence globally led to gains against the US$ as investors fled their safe-haven assets. The main focus of the economic week for the UK was this month’s Bank of England’s meeting minutes released on Wednesday. In the report we learnt that Mervin King (the Bank’s governor) and two of the other eight members’ wishes to immediately expand the ‘asset purchase scheme’ and inject further liquidity into the UK economy. This news instantly devalued sterling on the markets and added speculation that the governor’s plans may well be supported by additional members next month as all have supported the notion. This week will see second quarter UK GDP figures, another major indicator for the current health of the UK economy.


The US$, currently at $1.647/£1, made broad losses against almost all major currencies last week as global risk appetite grew and investors sold-off their low-yield and low risk assets. With many of the nations hit by the ‘credit crunch’ in the last two years now seeing faintly positive, if inconsistent, productivity data the anticipation of the end of the global recession has generated enough confidence to see a sharp rise in commodity indices and a brightened outlook for business.


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Posted August 17th, 2009 by Charles Purdy

Weekly US$ rates and comments – week commencing 17th August 2009

Sterling lost ground against most currencies during the course of last week. On Wednesday we had the Bank of England’s Quarterly Information Report. This gave some background as to why the BoE had increased the amount of quantitative easing to £175bn, a major factor behind sterling’s recent fall. “The UK recession was deeper than originally  Continue Reading…

Posted August 10th, 2009 by Charles Purdy

Weekly US$ rates and comments – week commencing 10th August 2009

Last week all started positively for sterling with the purchasing manager indices for both manufacturing and services showing improvement and even indicating expansion as the readings headed over 50. As a result sterling strengthened against most currencies. Come Thursday mid-day it all came to a grinding halt and sterling went into fast reverse. The reason  Continue Reading…

Posted August 3rd, 2009 by Charles Purdy

Weekly US$ rates and comments – week commencing 3rd August 2009

Sterling had a goodish week gaining ground against most currencies. Confidence seems to be returning to the economy. The UK Purchasing Managers Index for both services and manufacturing are at or are fast approaching 50. This index is viewed as being in expansion when at 50 and above and both indices have been moving strongly  Continue Reading…

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