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Posted December 30th, 2011 by Charles Purdy

USD/GBP Rate & Comments for 30th December 2011

US$/GBP - 1.5427 

So 2011 is coming to a close and for most is best forgotten. A strange year as it started with the expectation that the UK economy would continue to move forward albeit at a low rate of growth. But as the year comes to a close, the hope is that we will avoid another recession in 2012. The likelihood of any increases in UK interest rates also seems remote as the banks need to restore their balance sheets before allowing funds to be lent to fund economic growth.

This week sterling has lost ground across the board. Post Christmas retail sales went better than expected but there is no doubt margins were significantly reduced as the retailers made a dash for cash. The fear is that further quantitative easing will be required in early 2012 to help boost the UK economy.

Two Italian debt issuances were completed this week. Both were successful although the interest rate was close to 7% for the longer dated bonds. This is the interest rate which is viewed as the tipping point between the debt being affordable or it being unsustainable. These successful debt issuance helped the euro pull back from its 11 month low against sterling. The US$ had a good week benefitting from its safe haven status and an economy that is moving forward at a quicker rate than in Europe.

From all of us here at Smart we wish you all the very best for 2012 and hope that you have the best of health and a highly prosperous year as well.

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Posted December 29th, 2011 by Charles Purdy

USD/GBP Rate & Comments for 29th December 2011

US$/GBP – 1.5470 Still in the Christmas period when trading volumes are low and the issuance of UK economic data somewhat sparse. Sterling lost a bit of ground as activity focussed on the safe haven status of the US$. A bit more excitement in the euro zone. The Italian government successfully issued some six month  Continue Reading…

Posted December 28th, 2011 by Charles Purdy

USD/GBP Rate & Comments for 28th December 2011

US$/GBP -1.5690 A quiet day on the currency markets yesterday as we enjoyed an extended Christmas break. The City of London is the largest currency market in the world and as such trading elsewhere was fairly muted. There was little movement between the major currencies. At the end of last week, worries about the UK  Continue Reading…

Posted December 23rd, 2011 by Charles Purdy

USD/GBP Rate & Comments for 23th December 2011

US$/GBP -1.5690 Markets are quiet in the build-up to Christmas. Sterling had a steady day against most currencies. Slight revisions to previous growth figures were released but it is future growth that most people are worried about and the uncertainty in the euro zone has a very significant knock-on effect on us. A fall back  Continue Reading…

Posted December 22nd, 2011 by Charles Purdy

USD/GBP Rate & Comments for 22th December 2011

US$/GBP – 1.5674 Sterling hit the highest level against the euro since January 2011, breaking through €1.20/£1 and hitting a high of €1.2043/£1 as strong demand for lending from the ECB failed to alleviate concerns over the European debt crisis. Despite sterling’s strength against the euro, the Bank of England minutes were pretty downbeat with  Continue Reading…

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