Posts Tagged ‘Decline’

the Data from UK have supported the pound

Posted by admin on October 20th, 2009

Net public sector borrowing in September reached a record high, but were slightly above forecasts. The need for public sector cash flow in September also proved to be a record, but also below analysts’ forecasts. Costs continue to rise by around 5% per year, however, with tax revenues falling by 10%. Despite the fact that the outlook for the UK is improving, the recovery had been sluggish, and tax revenues in the foreseeable future is likely to continue to fall, and in the absence of action by the state budget deficit continues to grow.

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Sterling continued to rally at the end of last week, but has relinquished gains in trading this morning

Posted by admin on October 19th, 2009

Sterling’s rally against the euro persisted on Friday, albeit with slightly less momentum, with the price closing the week at 1.0971, up 0.8% on the day.Sterling’s volatile run continued with a modest climb at the end of last week, as investors squeezed what more they could out of a rally that is expected to fade. Comments from BoE member Paul Fisher breathed some life into the pound, which has come under heavy pressure in recent weeks, when he stated that the quantitative easing programme is having its desired effect. His remarks built on those of Charles Bean earlier in the week and were seen as a departure from the Bank’s hitherto-drab assessments of the UK recovery and relaxed opinion of sterling’s decline.

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BNP Paribas expects continued decline of the British pound

Posted by admin on October 14th, 2009

Analysts said BNP Paribas, in the medium term decline of the British pound will continue. However, note in the bank, now the main theme is the weakening U.S. currency. Pound / dollar is now trading near the bank’s target level of 1.5990 – if the couple overcome this mark, then the growth may continue until the level of 1.6110, where strategists believe the bank profitable sale pairs. At the moment couple pound / dollar traded at 1.5992.

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The aussie continues to trade strongly, supported by risk appetite in the market

Posted by admin on October 9th, 2009

The aussie climbed a further two cents yesterday as figures revealed rising employment in Australia, and as rising risk appetite supported strong demand for high yielding currencies. The Australian dollar continued to push higher as encouraging data from the labour market gave investors further cause to buy into Australian assets. The recent rate hike to 3.25% has increased the yield gap between the two currencies, and the recent downturn in unemployment has simply reinforced the sentiment that Australia is at the forefront of the global economic recovery, strengthening aussie demand.

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Kiwi halted its climb yesterday, as demand for higher-yeilding currencies weakened

Posted by admin on October 8th, 2009

Sterling reversed a three-day decline against the kiwi, posting marginal gains following a rise in risk aversion, closing the day at 2.1682. It was a choppy session for sterling, which initially dropped to a low of 2.1476 in early trading, as a lack of major economic data gave support to the higher-yielding currency. However, having dipped, the pound rebounded strongly, regaining over two cents as global equities backed off to trade in the red. Weak European stocks were followed in by the US markets, easing risk appetite and allowing the UK currency to stabilize in the afternoon, consolidating its position above 2.1650.

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Investors were cautious yesterday ahead of an ECB rate decision, but the euro has rebounded this morning

Posted by admin on October 8th, 2009

The euro relinquished some of its recent gains against the greenback yesterday, with investors on the defensive ahead of the ECB rate decision today. A broadly stronger dollar was the currency of choice yesterday as investors trimmed “riskier” positions in favour of the haven currency as equities slipped into the red, easing risk appetite.The dollar also benefited after a US official said raising interest rates would not derail the US economic recovery. “Even if we were to start immediately, much time would pass before incremental increases could be considered tight or even neutral policy.Additionally analysts noted that the greenback was being supported by speculation that the dollar’s decline may have been too fast to sustain.In trading this morning, the greenback has come under pressure after Australian employment data reinforced demand for higher-yielding assets. The ECB are widely expected to announce today at 12:45BST that interest rates in the eurozone will remain at a record low of 1.0%, though the tone of the accompanying statement is likely to reflect growing optimism over the state of economic recovery in the region.

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The euro has made strong gains against the dollar, buoyed by a rise in risk and pressure on the US currency

Posted by admin on October 6th, 2009

The euro posted solid gains against the greenback yesterday, as positive US data buoyed demand for the ‘riskier’ single currency. The dollar remained weaker against the euro in trading, continuing its decline after last week’s weaker-than-expected US data failed to extinguish risk appetite The dollar was also lower as traders read the absence of any new commitment on currencies from the G7 meeting over the weekend as a green light to sell the US currency. Traders were bracing for stronger language to arrest the slump in the US currency but no mention of dollar weakness was made, allowing the greenback’s downward trend to continue.

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The euro posted gains against the US dollar on Friday and has reached back over 1.46 this morning

Posted by admin on October 5th, 2009

The single currency shrugged off worse-than-expected US non-farm payrolls data to post gains, closing up 0.2% at 1.4574.Date revealed that the US economy lost 263,000 jobs in September, which was more than had been expected, according to official non-farm payrolls figures. The Labor Department revealed that US unemployment rate rose to 9.8%, fueling fears that the labour market could undermine economic recovery. The euro initially dropped sharply to a three-week low of 1.4485 on the release of the U.S. payrolls report, as investors were encouraged to the relative safety of the greenback.

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A rise in risk aversion weighed on the pound on Friday, supporting dollar gains

Posted by admin on October 5th, 2009

The pound slid against the dollar on Friday, completing its third straight weekly decline, as demand for the haven currency found support from weak US employment data.In early trading, risk appetite was down, with investors taking up defensive positions ahead of an expected rise in US unemployment figures. However with weak data already priced into the market, the pound avoided a further sell off after data confirmed an increase in jobless figures that brought overall unemployment in the US to 9.8%. The data did trigger a sharp fall in major stock indices, with traders concerned that the global recovery is struggling to find momentum.

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Aussie made strong gains yesterday as further positive economic data supported investor demand

Posted by admin on October 1st, 2009

Tuesday’s gains for the pound proved short lived as the aussie advanced over two cents (1.3%) to send the price down to a close of 1.8091. The aussie was buoyed by a larger than expected rise in retail sales in Australia, which heightened expectations that the Reserve Bank of Australia would be among the first of the world’s leading central banks to start raising interest rates. Sales beat forecasts in jumping 0.9% in August from a 0.9% decline in July, which buoyed demand for the high-yielding currency. Analysts noted that the aussie dollar is being well supported from Australia’s status as a big beneficiary of the solid Chinese economy.

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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.

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Pound fell lower against the dollar yesterday, but found some support to ease its rate of decline

Posted by admin on September 29th, 2009

Sterling fell as persistent bearish sentiment pushed it to an intra-day four-month low of $1.5796 against the dollar, before closing at $1.5882.The pound managed to pull back slightly from early losses after Chancellor Alistair Darling made a speech in which he reiterated the need to curb “reckless” bonuses. His comments suggested that the government would be taking forceful steps to firm up the fragile banking system which returned a certain amount of confidence to investors and prevented the pound from falling further. The pound also benefited from slight profit taking and rising stocks, but analysts said that despite expectations for improving economic data, the sterling / dollar price looks vulnerable to a further downside push with strong resistance materialising around 1.5750.

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Dollar, Yen up Ahead of the G20 Meeting

Posted by admin on September 25th, 2009

The Dollar snaps a two week decline versus the EUR after disappointing U.S Home Sales data and ahead of the G20 meeting. The USD and JPY are benefiting from the recent surge in risk aversion ahead of the G20 meeting and a concern that the group’s leaders will pose stricter regulations on financial markets. The drop in Oil prices, which began Wednesday, only exacerbated yesterday as equity markets tumbled and the Dollar strengthened, putting pressure on the commodities market.USD – Dollar Rebounds on Return to Risk Aversion The Dollar came roaring back yesterday against its rivals as poor housing data and falling equity markets sapped traders appetite for risk.

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Euro lost ground vs the dollar following an easing in risk appetite

Posted by admin on September 25th, 2009

The greenback continued to rally against the single currency yesterday, buoyed by a rise in risk aversion, to close the day at 1.4660. The dollar was under pressure yesterday after Wednesday night’s Federal Reserve meeting left investors with the message that US interest rates will remain very low for a long time.The euro also made gains against the dollar as the German Ifo Business climate survey rose to its highest level in a year in September, though it did undershoot forecasts of a stronger advance.However, the US dollar turned higher in the afternoon, after a report showed that sales of existing homes in America unexpectedly dropped in August, the first decline in five months.The euro also erased gains after major central banks, including the Fed, announced they were scaling back some emergency lending facilities.These gains were added to as US stocks turned negative in the afternoon, which further eased risk appetite in the market.This morning, the euro has recouped some of its losses after a statement from the G20 encouraged speculators to sell the low-yielding greenback.

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