Sterling Vs. American Dollar Latest Update - 18/08/10

Today’s weekly chart shows a “bearish engulfing pattern” which analysts are pointing toward as evidence that Sterling has peaked. After rallying from lows around 1.42 over the last three months Sterling fell sharply last week as investors flocked for the safe haven of the US dollar in response to steep declines in the stock markets as evidence of slowing growth increases the cha ges of a double dip. Risk aversion is taking hold, driving a strong rally in the US dollar and Japanese Yen, while other currencies such as the Euro and Sterling are effectively treading water. Read More >>

Sterling Vs. Aussie Dollar Latest Update - 18/08/10

Falling stock markets and rising risk aversion have helped “safe haven” currencies like the US dollar and Japanese Yen over the last week. A natural consequence of the US dollar strength is weakness in smaller economies currencies that are perceived by investors as more risky. That usually impacts the high yielding currencies the worst, allowing Sterling and the Euro to actually show some gains against the Aussie dollar, Kiwi dollar and South African Rand. However, during last week’s stock market weakness Sterling failed to make any headway, and it actually fell sharply yesterday after data confirmed that consumer price inflation moderated to 3.1% in July from 3.2% in June. That makes it less likely that Bank of England policy makers will raise interest rates any time soon, damaging Sterling’s investment appeal. The exchange rate fell by a couple of cents to 1.72. Sterling has recovered a cent today after the minutes from the latest BoE meeting showed that one of the nine strong committee did in fact vote for a rate hike. Andrew Sentance has been a lone voice for a few months now, calling for a rate rise while the 8 other members vote for interest rates to remain at record lows. Read More >>

Sterling Vs. Indian Rupee Latest Update - 14/05/10

The Rupee has made a new high, breaking below the 66.00 level which had been working as support earlier in the week. That level was also the January 2009 low, and represents a key long term support zone. That this has now been broken could send the Rupee sharply higher. Clients with Rupee requirements should consider covering now in order to avoid further possible downside. Read More >>

Sterling Vs. South African Rand Latest Update - 31/08/10

It’s not surprising to see this market enjoying a relatively stable period. The dominant theme in the markets right now is that there are two major currencies in play. The US dollar…and everything else! As evidence of a new economic slowdown continues to weigh on sentiment, investors have been moving assets into the “safe haven” of the dollar, and selling other currencies. This usually impacts the higher yielding currencies most, but in the current climate it happens to be economies like Australia and New Zealand that are doing better than the UK and Europe. They also offer a decent yield, and more importantly, that means there is more room to cut interest rates if the economic outlook deteriorates. These factors have helped the high yielders keep pace with the Pound and Euro over recent weeks despite their racier credentials. Read More >>

Latest - Sterling Vs. Canadian Dollar Latest Update - 31/08/10

A slight upward revision to the UK’s second quarter GDP figures to 1.2% did little to lift Sterling last week as investors focus on the longer term impact of the government’s austerity measures. On the other side of the Atlantic the US suffered a drastic revision downward in their Q2 GDP figure, from 2.4% to 1.6%, with a rise in net imports largely to blame. Analysts had been expecting a worse revision, so markets were not unduly perturbed by the data. Canadian second quarter growth figures are due out today, with analysts expecting annualised growth of 2.5%, down from the 6.1% seen in the first quarter. Read More >>

Sterling Vs. Kiwi Dollar Latest Update - 02/07/10

Falling consumer confidence and house prices are stoking growing alarm at the prospect of a double dip recession. As the new government introduced the prospect of sweeping budget cuts ratings agencies applauded and sterling rallied, but the signs are that consumers took fright and confidence in the recovery was immediately dented. Read More >>

Sterling Vs. Japanese Yen Latest Update - 13/04/10

Japan's finance minister Naoto Kan said on Monday that the economic outlook has improved significantly in recent months, pointing to rising stock prices and a weaker Yen. A weaker currency helps to boost exports as they become cheaper to foreign buyers. Read More >>

Sterling Vs. Hong Kong Dollar Latest Update - 16/04/10

The technical outlook is positive. We've made a new high above 11.94 and spent the whole week consolidating those gains, which tends to skew the odds in favour of further upside. The next key technical barriers are 12.09 (late February peak) and the more important 12.29 level which marked the high in mid February. Read More >>

Euro Vs. US Dollar Latest Update - 13/04/10

The technical outlook has improved for the Euro, but the trend is still down, and we would need to progress above 1.3820 to change that. The 1.3250 lows have been tested twice in the last few weeks, and there is scope for further upside if the market can close above the key 13590 level today. That would complete a so called "double bottom" pattern, a formation often referred to by technical traders as being predictive of Read More >>

Aussie Dollar Vs. American Dollar Latest Update - 14/04/10

The technical outlook is positive for the Aussie dollar. We are now testing the resistance level around 0.9400 that has presented a major barrier to this market over recent months. A daily close above here would suggest further gains in the short term. Read More >>

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