Posts Tagged ‘Monetary Policy’

Sterling slides further in the wake of a damning UK economic report

Posted by Forex News Resource on October 13th, 2009

The pound maintained its downward trend yesterday, losing a further 0.6% as a British report cast doubts over UK recovery prospects.

  • The outlook for global monetary policy shaped action on the foreign exchange markets on Monday, with sterling the main casualty.

Click to continue reading “Sterling slides further in the wake of a damning UK economic report”

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Demand for the kiwi remained strong yesterday, but it has lost ground in the wake of comments from Ben Bernanke

Posted by Forex News Resource on October 9th, 2009

The pound edged down against the kiwi as rising risk appetite in the market offset the BoE’s decision to hold their monetary policy unchanged.

  • Investors continued to buy into the higher-yielding New Zealand dollar, encouraged by rallying global equity markets and a broadly weaker dollar.
  • In the UK, the BoE kept interest rates at 0.5% and decided against extending the quantitative easing programme as some had feared.
  • However, the decision only gave the pound a muted boost against the kiwi, as investors had already priced the news into the market.
  • In trading this morning, the kiwi has trimmed its gains as investors lock in some profits and as comments from the Fed Chairman suggested that the US may need to tighten monetary policy, spurring a slight return to the US dollar.
  • However analysts have noted that overall market sentiment towards the kiwi is still pretty bullish, and that any upward movement for the pound is likely to be as a result of profit taking, rather than decreasing demand for kiwi assets.
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The aussie continues to trade strongly, supported by risk appetite in the market

Posted by Forex News Resource 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.

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Euro advanced against the greenback, buoyed by a relatively upbeat ECB rate statement

Posted by Forex News Resource on October 9th, 2009

The single currency climbed to a two week high of 1.4815 yesterday as investors continued to sell the dollar to fund riskier trades.

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Pound advanced vs a weakened dollar yesterday, supported too by a hold in the UK’s QE programme

Posted by Forex News Resource on October 9th, 2009

The pound climbed just over a cent (0.6%) against the dollar, buoyed by the BoE’s decision to keep its assets purchase scheme on hold.

  • In early trading sterling moved up against a broadly weak dollar, supported by expectations that the BoE would keep interest rates unchanged and maintain its current level of quantitative easing.

Click to continue reading “Pound advanced vs a weakened dollar yesterday, supported too by a hold in the UK’s QE programme”

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Sterling continued to slide vs the euro on the run up to the weekend, but has capped its losses this morning

Posted by Forex News Resource on September 28th, 2009

Sterling fell yet further on Friday on perceptions that the UK currency would be allowed to weaken to help the fragile British economy.

Click to continue reading “Sterling continued to slide vs the euro on the run up to the weekend, but has capped its losses this morning”

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Positive economic data from NZ, keeps the kiwi rallying higher vs sterling

Posted by Forex News Resource on September 25th, 2009

The New Zealand dollar advanced for the third consecutive day yesterday, as demand for kiwi assets remained high and as sterling weakness becomes ever more apparent.

  • The kiwi gained another two and half cents (1.1%) yesterday after the BoE announced that it was perfectly content with a lower currency exchange rate and was unlikely to initiate any type of tightening into its monetary policy for the foreseeable future.
  • The kiwi also continued to be supported by positive economic data from New Zealand, which supported claims that the RBNZ is considering raising interest rates.
  • The New Zealand currency has found support today after the G20 did not indicate any imminent withdrawal of stimulus measures, triggering a rush back into higher-yielding assets.
  • Initially the kiwi lost ground following disappointing local trade data released late last night, but it has rebounded strongly, climbing 0.75% in trading so far today.
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Positive data from NZ keeps the kiwi advancing against the pound

Posted by Forex News Resource on September 24th, 2009

Following positive news in New Zealand, the kiwi climbed strongly yesterday but had its gains steadily pulled back after the release of the MPC minutes.

  • It was revealed early yesterday morning that New Zealand had officially exited recession posting a third quarter positive GDP figure of 0.1%, which pulled the price to a low of 2.2433.
  • The report raised expectations that the Reserve Bank of New Zealand would move to tighten monetary policy sooner than previously forecast.
  • However, the kiwi had most of its gains steadily eroded throughout the day’s trading after the minutes from the latest UK MPC meeting revealed no discussion over reducing current interest rates, with the pair closing at 2.2696.
  • In trading this morning, the kiwi has advanced further, currently trading up nearly a percent, as fresh data from New Zealand showed that domestic consumer confidence jumped to a four-year high in the third quarter.
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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.

Click to continue reading “British Pound Selling Continues With Unemployment to Set 12-Year High (Euro Open)”

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