Currency Market Updates

Selling Sterling Short

Following over two weeks of selling pressure the market seems to be running out of new reasons to sell the pound. Sterling selling is running out of steam.

QE – Are We Done Yet?

The markets will be waiting to see what the MPC do with QE- the UK asset purchase scheme. Will they hold firm at the current level of £200 billion?

Obama’s Proposed Legislation is Digested

The markets became very flighty yesterday afternoon as President Obama called for the curbing of US banks riskier activity. This led to a scramble to safer currency shores but the markets could not seem to work out where to drop the anchor. The USD gained and then lost ground, the Yen had good gains as did sterling in the end and the commodity currencies softened.

Big Week for Sterling!

The National Institute of Economic and Social Research (NIESR) estimated that UK fourth quarter GDP which is due out next week will come in at +0.3%- so therefore the UK will be out of recession!

Aussie Shines & USD Weakens Further

The big winner in the markets was again the Aussie. The catalyst was better than expected jobs data; the unemployment rate dropped to 5.5% from 5.8% from the month earlier as the number of people in work rose by 35,200 in December.
Australia is the stand out performer of G20 nations and has rallied on stronger commodities and increased demand from China.

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