The pound made gains yesterday, taking support from a revised IMF report and an easing of risk activity to close the day at 2.2316 up 0.7%. Rising risk aversion enabled the pound to advance over a cent against the kiwi yesterday, with investors retreating into haven currencies. US employment claims rose last week, posting a figure well above forecast, dulling hopes of a swift recovery in the US, but supported gains for the UK currency. The negative data led to a sharp retreat in equity markets which prompted investors to sell the higher-yielding currencies.
Posts Tagged ‘Confidence’
The kiwi was weaker in trading yesterday following some concerning US economic data
Posted by admin on October 2nd, 2009
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Sterling fell just 0.03% against the kiwi yesterday, but has suffered in trading this morning
Posted by admin on September 29th, 2009
The pound slowed its rate of decline against the kiwi yesterday, falling just 0.03% as weak Asian trading dulled risk appetite.The pound slipped lower, but stemmed its rate of decline as demand for the higher-yielding currency was curbed following weaker trading on the Asian markets. Sterling has been broadly sold recently following comments from the King and BoE, however the strong European stocks prevented the pound from sliding too sharply yesterday. Major European and US stock indices climbed between 1 and 2%, firming up confidence in the global recovery, and lending slight support to the ailing pound.
Dovish words from the ECB president dragged the euro lower against the dollar yesterday
Posted by admin on September 29th, 2009
Talk of a slow recovery in the eurozone strengthened demand for the dollar yesterday allowing it to recover 0.5% to 1.4618.Support for the single currency was curbed slightly following the words of European Central Bank President Trichet, who spoke yesterday of a slow recovery in the 16-nation region. The governing council of the ECB considers that it would be premature to declare the crisis over, stating that now was not the time to implement an exit strategy. Additionally, analysts have said that on the whole, although the euro / dollar price is biased to the upside in the medium term, the single currency is now being challenged by corrective weakness.
Pound edged higher against the euro yesterday and has consolidated its position this morning
Posted by admin on September 29th, 2009
Having traded in the red for most of the day, the pound rebounded in the afternoon to close the day marginally up at 1.0859. ECB President Jean-Claude Trichet in a speech yesterday stated that the European economy will likely recover slowly in the coming months. Trichet continued, saying that it was too early for the ECB to stop pumping liquidity into the economy or to raise interest rates, which slowed demand for the single currency. Additionally, data showed that consumer prices in Germany fell faster than expected in September, which was a steeper decline than the market had looked for, capping the euro’s gains .
The pound fell below $1.60 on Friday, and rising risk aversion has seen it tumble further this morning
Posted by admin on September 28th, 2009
Confidence in the UK currency remained weak on Friday in the wake of comments made by Mr King and the BoE, with the price sinking below $1.60. Having initially fallen to a four month low of 1.5921 in the early hours of Friday morning, the pound proceeded to consolidate above 1.60, with analysts suggesting that a bullish correction was expected in the wake of Thursday’s plunge. However, bearish sentiment towards the pound soon returned, with traders continuing to dump the British currency on perceptions that the BoE would lag other countries in tightening its loose monetary policies. In the afternoon, a worse-than-expected reading in U.S.
Aussie hits new highs on sterling weakness and a rise in demand for higher-yielding currencies
Posted by admin 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. Remarks by Bank of England Governor Mervyn King to a regional newspaper published yesterday underscored the central bank’s lack of concern about the weakness of the pound, which sent the currency spiraling.The aussie received further support as investors shifted funds into higher-risk currencies after the US Fed bolstered expectations that interest rates would remain low for some time.Risk appetite was also encouraged after the G20 meeting, where a statement showed signs that that global stimulus measures would remain in place, buoying demand for the Australian dollar.
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