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Pound slumps on Gilt concerns
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
Yesterday the pound started the trading year very positive, however later in trading and in trading thus far today it has been sold. Despite good economic data yesterday from the UK in the form of UK Manufacturing, mortgage approvals and mortgage lending the rally could not be sustained. The reason for the slump is attributed to an article in the Telegraph which quoted US investment group PIMCO as stating that it will not be a buyer of Gilts in 2010 given the huge supply in the market. This is...
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Risk Appetite took a real beating yesterday
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
?.. following China's decision to increase their required reserve ratio (RRR) for its commercial banks by 0.50%, thus obliging said financial institutions to hold onto more of their deposits as reserves thus in a flash squeezing credit available to the country's already rampant economy. For China, the threat of inflation is now a reality rather than an assumed likelihood (as presently in other major economies), stemming from the stimulus measures that were introduced over the last year. To this...
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Lack of direction in the FX markets
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
Yesterday we saw a bout of USD selling pushing EUR/USD back to 1.45 and supporting the pound in a run up towards 1.62. This ran out of steam in later trading as the markets became range bound with this pattern continuing so far today. Data from the UK today showed a reduction in the trade deficit and overnight we saw BRC retail sales come in at +4.2% year on year; both data better than forecasts. However it was not all good news for the UK as RICS December house price balance came in at +30...
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USD on the back foot
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
A combination of factors has caused a weaker USD this morning. Firstly the market is reacting to the disappointing US non-farm payroll data on Friday; the expectation was for a positive number at +10,000, however the actual came in at -85,000 for the month of December. This data after volatile markets led to a weaker USD. This morning the pound and the euro have gained further against the greenback with sterling heading towards 1.62 and the euro pushing back over 1.45. The weekend release of...
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Sterling bounces higher
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
Sterling has finished the week as it started in a positive tone; the pound has pushed through 1.60 against the USD and towards 1.12 against the Euro. The gains are largely due to the feeling that the Bank of England will end the Quantitative Easing programme in next months MPC meeting. The general sentiment is that UK GDP will come in positively at the end of this month and this will lean the Bank Of England to pull the plug on the life support for the UK economy. On top of this sterling has...
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It is becoming a bit of a Competition for Last Place
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
?. between the Yen and Sterling. Both currencies are being seriously undermined by both political and economic concerns and are running neck and neck towards the edge of the precipice. On the political front, the replacement of Fujii by Kan as Finance Minister was not greeted enthusiastically and as mentioned yesterday the Yen took a little dip in value. The major concern, was that the Japanese bond market might take flight and the ability of the Ministry of Finance to satisfy the country's...
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The Shanta Foundation
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
As well as the employees of Currencies Direct donating to good causes on a regular basis, Currencies Direct as a company likes to support good works and projects on an ad hoc basis. One of these projects that chairman Mayank Patel has felt passionate about is The Shanta Foundation set up by Waymade Healthcare.
Basildon-based pharmaceutical company Waymade Healthcare has established fresh water and eye hospital initiatives and a university for the teaching of English in India and has also set...
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Higher Yielders make early 2010 gains
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
?.. with positive interest in many Far Eastern and Antipodean currencies continuing as investors look to the Asian and Pacific regions for the most likely currency appreciation during 2010. Apparently confirming the view, a researcher at the China Academy of Social Sciences (a bit of a Chinese Think Tank) told reporters that the Renminbi should be revalued by a one-off 10%. This, though, was mis-translated apparently with the Chinese version reading, they ?think that it is good to push for a...
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Bright start to 2010 for sterling
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
As usual, the trading periods between the Christmas and New Year holidays threw up some sharp moves, especially in the Dollar/Sterling cross, with one 24-hour session seeing cable trade up from 1.5850 to 1.6225 before settling back down below 1.6100. The few Banks still operating certainly enjoyed themselves'.. Today we start with Sterling looking relatively firm and the Yen soft. Euro/Dollar, which didn't experience the more extreme moves seen in cable, remains in the mid 1.43s. The Yen has...
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Aussie shines & USD weakens further
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
More weakness for the USD yesterday across the markets except against the Yen. This push on USD weakness relented in later trading after the Fed beige book posted a slightly bullish report for the US economy. Today is a big day for the USD with the eagerly awaited retail sales data and corporate earnings reported by Intel'the USD will need good news from both to stage a recovery and prevent further selling pressure.
The big winner in the markets was again the Aussie. The catalyst was better...
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Obama pledges new tax on banks
From Currencies Direct blog, 2 year ago, Read 0 times. Similar articles
In relation to their wholesale funding levels plus Intel's very, positive 4th Quarter earnings report. These followed yesterday's potential mine-field that was the ECB meeting. The market mover however, was a rumour that went round the Far East in the early hours that the German Chancellor, Merkel, was ready to resign her position. This appears to stem from a report in Time magazine that was negative on the support that Frau Merkel is currently receiving. This rumour was swiftly denied by a...
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