Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
 
  Daily Currency News Euro US Dollar Educational Articles  
 
Posted February 26th, 2013 by Charles Purdy

Hung parliament in Italy keeps the roller coaster going | Smart Daily Currency Note

GBP/USD – 1.5168

Yesterday was not for the faint hearted as the currency markets twisted one way and then the other as the news flow gathered pace. Sterling was aggressively sold off in early trading yesterday, reaching a sixteen month low against the euro and a 2.5 year low against the US dollar following  Moody’s – one of big three credit rating agencies – downgrading the UK’s sovereign rating by one grade to Aa1 from Aaa. The bond markets appeared to pay little attention to the news, with yields on UK government debt little affected by the news. Weaker than expected mortgage approvals data did little to help sterling early on. However, sterling has staged a recovery, albeit I suspect short term one, in the late afternoon reaching as news of a hung parliament in Italy undermined the euro. Chancellor George Osborne spoke yesterday and confirmed that the government would not deviate from its current path in spite of the recent downgrade. Early this morning the Governor of the Bank of England will be speaking and later on today we also have the realised sales data from the Confederation of British Industry (CBI)and a report from the Governor of the BoE and its Monetary Policy Committee (MPC) members on inflation and the current economic outlook. Call now for the latest updates on sterling.

The US dollar had relatively strong day all round yesterday strengthening against most of its major currency partners as risk aversion dominated the markets due to fears over the Italian parliamentary election.  The Chairman of the Federal Reserve, Ben Bernanke is due to feedback on the current monetary policy today and analysts expect the Chairman to outline his support for the current stimulus program. There will also be new residential sales data and consumer confidence figures. With a host of data released today, we could see a significant effect on the US currency, so call in now or a market update and a live quote.

For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website

 

Be Sociable, Share!

Comments are closed.

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus