Hawkish Comments from MPC Member Weale Sends Sterling Soaring. A Look at the Week Ahead
The Pound gained over 1% against the US Dollar, the Japanese Yen and the New Zealand dollar and was significantly up against many other highly traded currencies today. This come as the Bank of England Monetary Policy Committee member Martin [...]
Shock Reduction to Japan’s Credit Rating Hits the Yen
Standard & Poor’s reduced the Japanese credit rating from AAA to AA-, a drop of one notch. While this is not a huge reduction and is still the second best credit rating available, the markets reacted very negatively to the news as [...]
Second MPC Member Votes to Increase UK Interest Rates
Sterling rallied slightly from Tuesday’s heavy losses, after the minutes from the Bank of England’s latest policy meeting showed that more than one member voted to increase interest rates. The newest member, Martin Weade joined Andrew Sentence [...]
Sterling Plummets as the UK Economy Shrinks by 0.5%
The Pound suffered heavy losses today as the Office of National Statistics (ONS) reported that the UK gross domestic product (GDP) for the fourth quarter of 2010 had shrunk by 0.5%. The construction and service industries declined and the seasonal [...]
Rumours of a Solution to the Euro Crisis Helps the Single Currency. A Look at the Week Ahead…
Higher than expected inflation drove Sterling higher at the beginning of last week, and it briefly hit 1.20 to the Euro. The Euro then strengthened toward the end of the week amid speculation that European leaders will resolve their debt crises.
Indeed [...]
Profit Taking Hits Sterling and Commodity Currencies Fall as China is Expected to Tighten Monetary Policy
The Pound’s recent rally against the Euro and US Dollar came away somewhat today. Profit taking left Sterling down over 0.6% against both the Euro and the US Dollar. The Pound made strong gains against the Australian Dollar and New Zealand [...]
Sterling Rises as RPI Beats All Expectations
The Pound rose this morning against all other currencies as the Retail Price Index (RPI) came in at a barnstorming 3.7%. The significance of this is vast
The Bank of England’s Primary target is to keep inflation (as measured by RPI) at 2% [...]
Strong Gains by the Euro. A Look at the Week Ahead…
The Euro made strong gains on Thursday afternoon and on Friday as the president of the European Central Bank, Jean Claude Trichet made some hawkish comments about future interest rate direction. After confirming the European interest rate would [...]
Euro Steadies as Portuguese Debt Auction is Broadly Successful
The Portuguese debt auction went without event yesterday. Portuguese debt was in demand which slightly eased concerns about European peripheral sovereign debt. Portugal sold €599m of bonds that mature in 2020 at a yield of 6.71%. This compares [...]
Sterling hits 1.20 against the Euro. A look at the week ahead…
Last week was a very interesting week on the currency markets. The pound performed very well further to very strong manufacturing data and rose over 3% against the Euro. The European single currency has had a bad week as concerns over sovereign [...]
