Pound down amid Dubai doubts

Mon, 30 Nov 09 15:41 pm

UK currency has struggled this morning after a slide in UK consumer confidence saw it drop towards a one month low against the euro. Concerns in the UAE also piled pressure on the pound despite the central bank saying that it “stands behind” the country’s local and foreign banks amid last week’s fears of a default in Dubai.

Dollar Continues to Climb

Fri, 27 Nov 09 16:41 pm

The Dollar continued to climb overnight against most major rivals, except for the Japanese Yen. Reports from Dubai speculating the country’s Debt issues reignite fears of financial turmoil created by the credit crisis.

Dollar down as sterling strides

Wed, 25 Nov 09 15:46 pm

A weary dollar hit a two-week low against the euro this morning and was trampled by a rallying pound. Focus will be on sterling in European trading hours later today, with a revised set of third-quarter Gross Domestic Product figures set to cross the wires.

US GDP due

Tue, 24 Nov 09 15:56 pm

Exchange rates for the higher yielding currencies are tailing off this morning ahead of a big day for US markets, with GDP figures and consumer confidence due. German growth figures are also out this morning, to be followed by UK statistics tomorrow and this could lead to a volatile few days for the major currencies.

Sterling up against dollar as risk sentiment revives

Mon, 23 Nov 09 15:36 pm

The pound rose against a broadly weaker dollar today, rebounding from two-week lows hit last week. UK currency rallied as a revival in moderate risk sentiment put pressure on the greenback. Sterling was however pressured against a firmer euro after data showed a flash reading of the purchasing managers' manufacturing index rose to its highest level since March 2008.

Risk aversion rises

Fri, 20 Nov 09 15:17 pm

It was a low key day for markets yesterday with trading remaining largely range bound as risk appetite fell following weak US labour market data. Markets remain cautious at present amid fears that the global rally is running out of steam and this is supporting US dollar and yen currency rates at the expense of the pound at present.

Bank of England split

Thu, 19 Nov 09 15:21 pm

The pound declined throughout the day yesterday as the Bank of England minutes revealed the committee is split on the future of QE. Weak US housing market data sent equity markets around the world lower and the Nikkei index dropped to a four-month low after weak data from Mitsubishi. Today markets will be interested in UK borrowing figures and retail sales, as well as US labour market data.

UK inflation rises

Wed, 18 Nov 09 17:06 pm

Sterling gained ground yesterday, touching a three-month high against the euro after positive inflation data triggered appetite for the pound. US industrial production figures fell 0.1% in October, leading to a brief bout of risk aversion while the eurozone trade balance has come in better than expected for September. Today, volatility for the pound is likely with the Bank of England minutes released.

Pound hits 2-month high against euro

Tue, 17 Nov 09 17:06 pm

Sterling touched a two-month high against the euro this morning and hovered near its highest against the US dollar in more than three months after Bank of England policymaker Andrew Sentence said the UK economy was moving towards recovery.

Japan records growth

Mon, 16 Nov 09 15:35 pm

The Japanese economy has recorded 1.2% growth in the third quarter leading to a rise in risk appetite this morning. The pound has opened the week on a positive note, rising to 1.67 against the greenback ahead of key inflation figures out today.

Risk appetite rises

Fri, 13 Nov 09 15:32 pm

Risk appetite in the market has improved this morning after US jobless claims reached a 10-month low, sending the greenback near 15-month lows against the euro and Australian dollar. This morning the pound has benefited from the rise in risk appetite and the German economy has recorded 0.7% growth in the third quarter.

UK unemployment at 7.8%

Thu, 12 Nov 09 15:28 pm

The pound remained under pressure throughout the day yesterday after the unemployment rate came in at 7.8% and dovish comments from Bank of England Governor King led to speculation that there could be more QE in future. US markets remain strong with the euro and Aussie dollars being two of the primary beneficiaries form currency diversification.

Sterling holds ground

Wed, 11 Nov 09 15:27 pm

G20 pledges support

Tue, 10 Nov 09 15:26 pm

Equity markets across the US, UK and Europe have rallied sharply overnight as the G20 pledged to maintain support for the global economy. The UK retail sales monitor in the UK has produced a positive result for the year to October, while French and German GDP figures are due later in the week.

Sterling gains ground

Mon, 09 Nov 09 15:25 pm

The pound is stronger this morning against the euro and US dollar, rising on the back of strong industrial production figures out last week. US employment has reached above 10%, with payrolls shedding 190,000 workers in the last month. Today German industrial production figures are due and this could lead to some euro strength.

US markets rally

Fri, 06 Nov 09 15:24 pm

Currency rates for the pound and euro have gained ground this morning after a rally in US markets led to a rise in risk appetite internationally. The Bank of England and ECB both signaled they would look to reign in stimulus packages in future and this led the euro and pound higher overnight. US unemployment figures are due today.

MPC decision due

Thu, 05 Nov 09 15:23 pm

Risk aversion rose overnight as global equities fell and the European Commission voiced concern over the stability of the European banking sector. The New Zealand dollar fell overnight as unemployment reached a nine-year high and today, currency volatility is expected following interest rate decisions from the MPC and ECB.

Pound under pressure as Aussie drops

Wed, 04 Nov 09 15:22 pm

Sterling remains under pressure this morning as interest rate decisions loom for the UK, US and eurozone. This week’s figures have shown stronger manufacturing data across the regions, fuelled by stock building in the economy. Australian retail sales sunk overnight, sending the Australian currency lower.

Pound stays fragile ahead of Bank of England meeting

Tue, 03 Nov 09 15:21 pm

Currency exchange rates are little changed this morning, with the pound remaining weak ahead of the Bank of England interest rate decision later in the week. US automobile giant Ford has announced near USD1 billion worth of profits for the third quarter, while manufacturing sectors in both the UK and the eurozone expanded in October.

Sterling slides as dollar falls against euro

Mon, 02 Nov 09 15:19 pm

The pound slipped this morning, snapping a five-day winning streak against the euro as traders dumped sterling ahead of this weeks Bank of England meeting. Meanwhile, the dollar and the yen fell against the euro and higher-yielding currencies as solid Chinese data and expectations of a rate hike in Australia buoyed sentiment towards the perceived riskier currencies.