Posts Tagged ‘Monetary Policy’

Sterling hits 17 month low against dollar, high against euro

Posted by Tushar Mathur on January 16th, 2012

On Friday, the sterling was high against the struggling euro. The euro for past week it was reported to be 16 month low against dollar however on Friday they said that euro has been at 17 month low.  Later on a day count the sources for the euro zone government informed that the Standard & Poor cut the ratings to low grade.

Warning was made on December regarding the cuts in the rates. This lower of rating has been across several countries and even the Germany was not included in the list.

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Swiss franc is flirted with record high against euro

Posted by Tushar Mathur on June 21st, 2011

Since Thursday Swiss franc is low against euro. On the forex trade on Thursday the Swiss franc fell against euro and the reports concluded that this state will prevail and the debt crisis for the Greece will be soon resolved. Swiss franc had its all time record of being at 1.1946 however at the Thursday trade close at regarding the New York forex trade, the Swiss franc was at 1.2033 per euro.

Investors has dragged the Swiss to the safe zone of investing over the risk area values but on Thursday the Swiss national bank (SNB) announced about the strength that it is being going through however investors ignored them from accepting, this reason has caused the Swiss franc to be low against euro and dollar.

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Pound May Climb On Asset Purchase Program Ending

Posted by admin on January 18th, 2010

The U.K. currency may be experience a shift on its sentiment as speculations suggest that the current quantitative easing measures used by the nation’s central bank will be terminated, as the country starts to publish positive economic reports, suggesting that the recession may be ending in the British Isles. This week will be decisive for the pound as inflation yearly numbers are due to be published the next Tuesday, and if forecasts will be confirmed, the numbers are expected to surpass Bank of England’s target below 2 percent for the first time in seven months, fueling even further speculations that quantitative easing measures will be lifted in the U.K.

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Pound to Decline Versus Higher-Yielding Currencies on Weak Recovery

Posted by admin on January 11th, 2010

The United Kingdom has been showing itself as one of the least resilient nations among the wealthiest countries in the world, and its weak economic data combined with a ineffective monetary policy is likely to set the sterling further down in the first semester of 2010, specially versus higher-yielding options Bank of England policy makers insisted to extend its so far frustrated bond purchase strategy, injecting its remaining 200 billion pounds on the program, as interest rates remain at an all-time record low of 0.50 percent, maintaining the pound’s outlook negative, specially as the traders started the year with high levels of risk appetite.

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CBR should inflation

Posted by admin on October 30th, 2009

Financial Analyst FxPro Alexander Kuptsikevich: On Thursday, the board of directors of Bank of Russia decided to lower the refinancing rate by half a percentage point to 9,5%. As stated in the declaration, such a decision in the first place “stimulates the activity of the credit of the banking sector. This means that the Bank intends to continue to struggle with the strengthening of the ruble, using not only the purchase of currency on the market.One reason for the deepest recession in Russia served as a huge amount of foreign loans.

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Euro is more expensive than a pound before the end of the year

Posted by admin on October 27th, 2009

Today, one of six bank Moors BNP Paribas said that in 2009 the pound sterling could fall to parity with the euro. Today, steam EUR / GBP is trading at around 0.9070, up from 0.84 in mid-June. The jump came when it became clear that the Bank of England will continue to build a program to repurchase the assets, despite the improvement in the global financial sector. What happens to the pound and the UK economy is studying financial analyst FxPro Alexander Kuptsikevich.In Russia, considered to be the beginning of the crisis in September last year. But in fact the developed world crisis began one year earlier.

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The dollar is recovering losses against euro on speculation that the Fed may signal a tightening of monetary policy

Posted by admin on October 27th, 2009

Having traded strongly against the dollar in the early session, the euro surrendered gains in the afternoon session, pulling the price down sharply to close a $1.4873. Initially, the greenback hit a fresh 14-month low versus the euro after the Beijing-based Financial News revived concern over the status of the dollar, stating that China should raise the amount of yen and euros held in its foreign-exchange reserves.However, the dollar pared its losses after the author of the report said that it was purely a “personal view”.In addition, the issue of diversification has been a topic for quite a while and the impact of the news was short-lived.

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Morgan Stanley predicts the strengthening of the Swiss franc

Posted by admin on October 23rd, 2009

According to currency analysts Morgan Stanley, by the end of the Swiss franc could strengthen to a mark of 1.50 against the euro (compared to before. Forecast 1.54), as well as economic recovery and higher inflation leads central bank to stop selling the currency. As noted in the bank, some central banks began to tighten monetary policy, while others have begun to reduce the amount of anti-crisis program – against the background of these circumstances, market participants would react with great attention to the question whether the Swiss National Bank to change the selected course of monetary policy.

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The kiwi edged higher against the pound but has weakened this morning following important Chinese data

Posted by admin on October 22nd, 2009

Having given up ground to the UK currency in early trading, the kiwi rallied steadily through the afternoon, to close marginally up at 2.1833. The pound found support yesterday after the BoE’s policy minutes revealed no direct discussion over further loosening the current monetary policy. In the wake of the news, sterling posted an intra-day high of 2.2074 as investors grew more confident in the outlook for the UK economy. However, the New Zealand dollar capped its losses as Alan Bollard, governor of the Reserve Bank of New Zealand, in a speech appeared surprisingly reserved over the recent appreciation of the kiwi dollar.

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Sterling made substantial ground on the dollar yesterday as the BoE showed no sign of loosening montary policy further

Posted by admin on October 22nd, 2009

Dollar selling in the market was stepped up with investors moving into the pound as the MPC minutes proved more positive than expected. The pound climbed over 1.66, posting a two and half cent gain against the dollar as the minutes from the Bank of England’s October monetary policy meeting struck a less dovish tone than recent comments suggested. Analysts said the most important story within the release was the fact that in the September meeting, governor Mervyn King thought an expansion of the central bank’s quantitative easing programme could be justified. But there was no mention of that in this latest meeting.

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Bank of England voted unanimously to maintain the key rate

Posted by admin on October 21st, 2009

Wednesday, 21 October, the Bank of England published the minutes of the meeting held on October 7-8, at which the Committee on monetary policy has kept the rate of compulsory reserves of commercial banks at 0.50%. The decision was taken unanimously. At the same meeting it was decided to continue the program to acquire the assets of the private sector by the central bank reserves amounting to 175 billion pounds.Based on the evaluation of the program to buy assets on the financial markets, the Committee of the Bank of England expects that this program in conjunction with other factors, including timely reduction of the key rate, government intervention to stabilize the banking system, the restoration of the world economy and increased confidence, has led to significant improvements.

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Bank of Canada left interest rates at the same level

Posted by admin on October 21st, 2009

Bank of Canada today adopted a decision to leave the refinancing rate unchanged at 0.25%.The latest indicators show the beginning of the withdrawal of the world economy from deep recession. State of the world economy and the general trends in the financial markets have been somewhat more favorable projections, which were listed in the July report on monetary policy the Bank of Canada.Given the current interest rate factors in Canada can not remain at current levels until the end of the second quarter of 2010 for the achievement of targeted inflation .

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Euro pushes higher but finds strong resistence at $1.50

Posted by admin on October 20th, 2009

The single currency resumed its climb against the dollar in trading yesterday, supported by rising confidence in the global recovery, closing the day up 0.4%.The euro hovered just below the psychologically important 1.50 level as the US dollar remained under selling pressure on expectations that US interest rates will remain pinned at record lows well into 2010. The single currency also found support as some investors speculated finance ministers from the 16-nation region meeting in Luxembourg would focus on the currency’s strength. The dollar came under further pressure as the continued confidence over the prospects of a global economic recovery were reaffirmed as the Dow Jones opened up over 10,000, keeping haven demand for the dollar in check. Late in the afternoon, the Fed added to the greenback’s woes after stating that it has been testing its reverse repurchase agreement tool but is not about to use it, suggesting that US monetary policy is not set to tighten just yet.

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End of the line for the old monetary regime

Posted by admin on October 16th, 2009

What does the financial crisis in the context of monetary policy? The answer may seem obvious. Central banks have responded to the stalling of interbank markets with massive injections of liquidity. When they ran out of room to maneuver with a short-term rates, they have a direct impact on the money supply through quantitative easing. As conditions stabilized, the question arises: when and how to tighten policy, so as not to push an already fragile economy back into recession or not to allow another major round of inflation.Specific solutions have been widely obsuzhdaemy, but has been relatively little discussion about the purpose or structure in tactics.

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Sterling has rallied strongly against the euro, pushing up over 1.09

Posted by admin on October 16th, 2009

Sterling strengthened as much as 2.2% to a ten-day high of 1.0936 against the euro yesterday, its biggest intra-day gain since Jan 30th.Sterling was able to post strong gains following bullish comments from a Bank of England policymaker who stated that quantitative easing is in fact working. MPC member Paul Fisher told the Financial Times he felt confident that the bank’s asset purchase programme was ‘having the scale and speed of impact that we would have hoped for when we started,’ back in March. Analysts said that the comments were perceived as lessening the chances that the central bank would expand its loose monetary policy at their next meeting in November, which to some extent, had already been priced into the market.

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