The US Dollar surged higher to start the trading week as stocks sold off across Asian exchanges, boosting demand for the safety-linked currency.
Posts Tagged ‘Bank Of England’
Pound Tumbles, Dollar Surges as Risk Aversion Hits Currency Markets (Euro Open)
Posted by Forex News on September 28th, 2009
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Aussie hits new highs on sterling weakness and a rise in demand for higher-yielding currencies
Posted by Forex News Resource on September 25th, 2009
Selling pressure on the pound and demand for higher-risk currencies saw the aussie advance to a fresh twenty-year high of 1.8464 against the pound.
Sterling weakness drags it down below 1.60 following King’s comments
Posted by Forex News Resource on September 25th, 2009
The pound slid 1.7% against the greenback yesterday as momentum to dump the pound snowballed following comments from King that lent his support to a weak currency.
- Sterling was at a two and a half month low against the dollar after comments from Mervyn King left FX markets in no doubt the Bank of England was comfortable with a weaker pound.
- A meeting set up between the BoE and London-based economists to clarify policy also worried investors who maintained their bearish sentiment toward the pound, pushing it lower.
- An easing of risk appetite added support to the dollar after data revealed a decline in US existing home sales from the previous month and undershooting forecasts.
- Additionally, as the US markets came online, equity markets took a turn into the red, which supported demand for the haven currency, and brought the price to a close of $1.6064.
- In trading this morning, sterling has tumbled to a four month low against the dollar as a break of the 1.60 level triggered a wave of stop loss sales.
The pound’s decline continues, as confidence in the currency is undermined
Posted by Forex News Resource on September 25th, 2009
Sterling went into its steepest daily decline against the single currency in 5 months yesterday, losing 1.2%, after Mr. King revealed that he was content with the current value of the pound.
The pound has failed to sustain yesterday’s rally against the aussie, plummeting over 2 cents so far this morning
Posted by Forex News Resource on September 24th, 2009
The pound shot higher against the aussie yesterday after suspicions were quashed that the Bank of England may have recently considered further easing.
- Minutes from the latest MPC meeting revealed a more encouraging note upon the prospect of the UK economy, and signaled that currently no further extension of loose monetary policies were necessary, which supported demand for the pound.
- Additionally, the rise of recent risk appetite took a brief pause as traders awaited an interest rate decision from the Fed, which weakened demand for higher-yielding currencies.
- However, during Asian trading, the Tokyo’s Nikkei index rose 0.9% in its first day of trading following a three day holiday, which encouraged investor demand for the aussie, pushing it higher, and currently trading 0.7% up for the day.
- The aussie was also supported by a US statement that rates would remain low for some time, which buoyed investors to resume selling the US dollar in favour of higher-yielding currencies.
Pound was supported yesterday by the MPC minutes but has resumed its slide so far today
Posted by Forex News Resource on September 24th, 2009
Sterling got a welcome reprieve from negative sentiment yesterday after BoE minutes revealed that there had been no discussion of cutting interest rates.
- The pound rallied sharply after the minutes of the Bank of England’s September monetary policy committee meeting calmed fears over a possible extension of its quantitative easing programme.
- The minutes showed a unanimous consensus to keep the Bank’s asset purchase plan at current levels and there was no discussion over a cut in the rate its pays on commercial bank deposits.
- The tone of the meeting was more encouraging than had been priced into the market, stating that “ growth in the second half of the year is likely to be positive,” returning demand for the pound.
- However, although the minutes did mention recent improvements in the economic and financial data, they did leave the door open to further policy loosening, which capped sterling’s rally.
- In trading today, the pound has plummeted nearly a cent, hitting a low below the 1.10 mark as decling stocks and another statment from Mervyn King weigh heavily on the pound’s prospects.
British Pound Volatility Threat High as Currency Markets Focus on BOE Minutes (Euro Open)
Posted by Forex News on September 23rd, 2009
The British Pound may be in for a volatile session ahead as the release of minutes from this month’s Bank of England monetary policy meeting top the economic calendar in European hours.
British Pound Selling Continues With Unemployment to Set 12-Year High (Euro Open)
Posted by Forex News on September 16th, 2009
The British Pound fell against the US Dollar in overnight trading ahead of a report that is set to show the unemployment rate hit a 12-year high of 5% in August.
GBP Anticipates Volatility before Rate Decision
Posted by Forex News on September 10th, 2009
With mixed results versus its primary currency counterparts, the British Pound appears to be consolidating many of its trends towards a volatile movement; positioned to take place today, it appears.
Click to continue reading “GBP Anticipates Volatility before Rate Decision”
British Pound Takes Center Stage as Bank of England Announces Interest Rates (Euro Open)
Posted by Forex News on September 10th, 2009
The British Pound is in European trading hours as currency markets turn their attention to the interest rate decision from the Bank of England.
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