Sterling maintained its rally as investors continued to lock in profits ahead of the weekend, with the price closing the day at 1.7839. Having climbed to multi-year highs against the pound earlier last week, positive comments from members of the BoE concerning the quantitative easing programme triggered an opportunity amongst investors to take profit, driving the price higher. Comments on Friday were made that stated the asset purchase scheme is having its desired effect on the UK economy, dulling concerns about the possibility of a further expansion. There was also a slight pull back in demand for the higher-yielding aussie following a weak earnings report from the Bank of America, which gave investors further cause to cash profits.
Posts Tagged ‘Rally’
Profit taking ahead of the weekend allowed the pound to make further ground against the aussie on Friday
Posted by admin on October 19th, 2009
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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.
Euphoria over the corporate reporting continues
Posted by admin on October 15th, 2009
Currently scheduled reports earnings Citigroup, Goldman Sachs and Google. If the results exceed expectations, stock markets continue to rise.Bank “JPMorgan” yesterday issued a strong quarterly report, which, together with the report “Intel” has become the main acting force growth on the stock exchanges. Income Statement JPM consisted of two parts: the investment bank recorded record revenue, but the strongest credit division had suffered losses and signaled a possible new losses.The current strengthening of equity markets was strong enough, but the lack of internal corporate customers and increased demand for funds with fixed income indicate that the rally outliving itself; until the 2009 fixed-income funds have attracted 18 times more investment than stocks.Results of the printed record of the Federal Committee on Peacekeeping Operations on the open market in the U.S. triggered selling of the dollar, as the majority of committee members were in favor of an increase in purchase of assets to stimulate economic recovery.Saxo Bank
The single currency continues to strengthen against the dollar, posting a fresh 14-month high
Posted by admin on October 15th, 2009
The dollar slid further against the euro yesterday as solid results from JP Morgan Chase and rising equities stoked optimism about an improving global economy.The euro extended its rally, hitting a fourteen-month high of 1.4943 against the greenback, boosted after data showed an acceleration in eurozone industrial output. Industrial production in eurozone rose for the fourth straight month in August, providing further evidence that the area’s economy is on track to post its first rise in gross domestic product in the third quarter since the first quarter of 2008. Pressure on the dollar was also added as every major stock market in Europe rose after New York-based bank JP Morgan Chase announced strong third-quarter earnings, adding to risk appetite.
The kiwi dollar continues to climb as expectations of a rate rise strenghten
Posted by admin on October 14th, 2009
Once again sterling edged downward against the kiwi yesterday, though it picked itself up significantly from an intra-day low below 2.13, to close at 2.1534. The pound dropped in early trading after a business group said the Bank of England should expand its asset-purchase programme and the inflation rate slowed more than forecast. UK annual consumer price inflation slumped to its weakest rate in seven years in September, underlining the likelihood that the Bank of England will need to maintain loose policy for an extended period.However, investors took the opportunity to cash in profits in the afternoon, buying back into the pound, enabling the sterling price to rally.
The single currency is pushing up towards 1.49 against the dollar as risk appetite firms
Posted by admin on October 14th, 2009
The single currency reached a 14-month high of 1.4874 against the greenback yesterday, advancing over a cent, as investors refocused on the outlook for US interest rates.In early trading, the single currency suffered a setback as the German ZEW Economic Sentiment index dropped to 56.0 from 57.7 in September, its first fall in three months. However, the dip provided a good buying opportunity for a market that remains broadly bearish on the dollar, allowing the euro to push higher. Analysts also noted that the weakness of the dollar was due in part to comments from a Japanese Ministry of Finance official, which reiterated the recent stance to accept the onging strength of the yen.
Today the direction of the stock exchanges will set the corporate reports
Posted by admin on October 13th, 2009
On the agenda reports on income from «Intel» and «Johnson & Johnson». Of particular interest is «Intel» (publish a report after the close of the market). We expect good financial performance. Yesterday’s trading day was calm and in terms of makrostatistiki, and in terms of corporate reports, but it did not stop the rally of risky assets. European stocks have shown excellent results. The same can be said about the dynamics of the euro, Canadian and Australian dollars.Today on the agenda reports on income from «Intel» and «Johnson & Johnson». Last published before the opening of markets in the United States.
Rate rise to 3.25% in Australia boosts demand for the aussie
Posted by admin on October 7th, 2009
The Australian dollar continued to push record highs yesterday, supported by the RBA’s decision to raise rates as the global financial crisis eases. The aussie continued to rally strongly, gaining nearly three cents, a 1.4% movement, as investors sought to take advantage of the higher-yield now available on Australian assets. The Reserve Bank of Australia became the first of the G20 nations to raise their base cash rate and helped to ease fears over the state of global economic recovery. Analysts also noted that the widening yield advantage points to further aussie appreciation, particularly as the RBA, unlike other central banks, does not seem too concerned about their currency strength.
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Negative UK economic data pushes the pound down against a broadly weakened dollar
Posted by admin on October 7th, 2009
Sterling was unable to capitalize on an early rally against the dollar as weak economic data reaffirmed fears over the fragility of the UK recovery.Sterling initially advanced over a cent yesterday morning as selling pressure on the US currency mounted following an article stating that the dollar could cease to be used in oil trades in the Gulf States. However the pound relinquished its gains after weak manufacturing production data sapped investor demand for the UK currency. The manufacturing sector revealed a 1.9% decrease in production in August, reversing a three month increase in output, and falling well below expectations of a 0.4% rise.
More positive investor sentiment returned to the UK yesterday, supporting a slight pound recovery
Posted by admin on September 30th, 2009
Sterling reversed a four day slide against the dollar yesterday, supported by positive economic data that included another upward revision of the 2nd quarter GDP figure. The final gross domestic product figure showed that UK growth contracted by 0.6% between April and June, a narrower fall than the previous estimate of a 0.7% contraction. The revision is almost entirely due to stronger estimates of construction output than previously forecast, according to analysts. Sales volumes at U.K. retailers also bounced back more than expected to their strongest level for five months in September and are expected to remain steady in October.
The euro made ground against the dollar on Friday, but has relinquished its gains this morning
Posted by admin on September 28th, 2009
The euro made gains on Friday, following a two day slide, buoyed by improving economic data in the US, and closing at 1.4689. The single currency initially lost ground against the greenback as poor data on US core durable goods orders initiated a slight dollar rally. However, the euro erased early losses after data showed US consumer sentiment improved in September while sales of US homes edged higher in August. Consumer sentiment rose to its highest point since February 2008, supporting a rise in stock indices, which picked up from earlier losses, adding further support to the euro’s rise.
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.
The pound has failed to sustain yesterday’s rally against the aussie, plummeting over 2 cents so far this morning
Posted by admin 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 admin 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.
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Sterling is currently trading higher against the aussie following upbeat comments and a move to cash profits
Sterling recovered some of its recent extensive losses against the aussie dollar yesterday, climbing over two cents, to close up at 1.7668. Bank of England member, Paul Fisher, said yesterday that policy makers would be more likely to pause asset purchases in their upcoming meeting in November, giving themselves the option of “doing more later,” rather than stopping them. His comments were taken to read that the MPC is unlikely to extend their quantitative easing programme, supporting a slight rise in confidence in the UK economy, strengthening the pound. In broad terms, the aussie traded strongly against most currencies yesterday as positive economic data in the US led to investors adding to their long positions in the higher-yielding currency.
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