On Friday trade, the sterling was found to be strong and steady against dollar and euro. Nevertheless the investors were eagerly waiting for the Greek bailout deal that they believe it would turn out to be positive and signed approved in the upcoming week.

Pound is expected to be weak as the pressure was severe for it in selling the retail sales data. This steady status of the sterling is also because of the development by the Greece country. The risk is stated that the pound is underperforming against the dollar and outperforming against euro.

Greece is more awaited on the euro zone finance minister to approve and sign on the Greece bailout deal on Monday and this will however result in the bond holders to look at the sterling. Greek peoples are trying to avoid the disorderly default.

At the close, euro was 83.08 which is 0.1% down against sterling. It was reported to be very steep fall against sterling. Regardless the focus of all the investors is on the Greek deal. Against pence it is at 82.64 on the trade close on Friday. The 17 month low was marked as 82.22.

Michael sneyd, strategist said that euro is much correlated between sterling and dollar. And so the movements should be noted very keenly and today’s movement will be twisted into anything on Monday after knowing the results of the Greece deal. Sterling will be much affected with that of the bailout deal result.

The correlation could be broken up by a weak retail sales data they would be adverse the effect only by the stronger sales range. However the weaker retail sales data will have minor changes in the sterling. Two week low of sterling was at $1.5644 on Tuesday and at the flat close on Friday, it was at $1.5799.

Related posts:

1. Sterling hits 17 month low against dollar, high against euro
2. Euro rose against dollar with euro debt crisis and pressure on ECB
3. Sterling continued to rally at the end of last week, but has relinquished gains in trading this morning

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. anytime soon this year. The 200 billion pounds used for bond purchasing will have their last part of 25 billion to be used by early February, and the next central bankers’ meeting may already bring better news for the sterling if the country’s monetary policy change its direction.

The pound has been suffering from an insistent recession combined with a struggling financial system and ineffective policies taken by the Bank of England to combat the crisis, but as economic data improves, the pound may advance considerably, since it was one of the currencies who lost the most among the main traded ones in foreign-exchange markets last year.

GBP/USD traded at 1.6277 as of 02:20 GMT from a previous rate of 1.6256 when markets closed last Friday.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Related posts:

1. Unchanged Rates and Bond Purchases Maintain Pound Down
2. Pound continued to climb against the aussie yesterday as confidence in the UK economy improved
3. Pound to Decline Versus Higher-Yielding Currencies on Weak Recovery

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. Commodities linked currencies like the Australian and the Canadian dollar are likely to rally further versus the pound this year, and demand for energy is likely to favor these oil producer’s currencies, specially for Canada’s currency, as the winter in the Northern Hemisphere has been one of severest in the past year, increasing demand for energy in the United States.

This week will be marked by a monthly manufacturing production report in the U.K., which has provided mixed data in the past months, but nevertheless, as analysts aren’t very optimistic regarding British economic growth in the first quarter of 2010, the pound has considerable odds to lose further versus the currencies above mentioned.

GBP/CAD started this week trading at 1.6495 from as high as 1.6850 one week ago.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Related posts:

1. Aussie hits new highs on sterling weakness and a rise in demand for higher-yielding currencies
2. Euro posts gains against the US dollar as risk appetite ushers investors into high-yielding currencies
3. USD Continues Decline; Slow Economic Recovery Expected

The British currency continued to suffer from its central bank monetary policies as interest rates remained unchanged in the country, suggesting that the recession will remain a reality in England for an extended period.

A concerning budget deficit combined with weak economic data has been affecting the pound’s outlook as the Bank of England insists on its asset-purchase program which hasn’t been effective so far, as well as in all-time record low interest rates which decrease the appeal for the sterling in foreign-exchange markets.

GBP/USD bottomed at 1.5923 as of 22:21 GMT from a previous rate of 1.6036.

If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below.

Related posts:

1. For Britain – low interest rates and the weakening pound
2. The sterling/euro price closed relatively unchanged yesterday as both the MPC and ECB held rates.
3. British Pound Takes Center Stage as Bank of England Announces Interest Rates (Euro Open)

The pound edged higher, achieving its biggest weekly advance against the euro since January, as signs pointed to the UK economic recovery talking hold.

• The pound/euro pairing was little changed at the end of last week, though sterling did creep up, supported by reports showing gains in consumer confidence and UK house prices.
• Month-on-month property prices were up for the sixth consecutive month in October and were 2% higher than in the same month the previous year. However, the pace of monthly price rises has eased, going up by just 0.4%.
• Meanwhile in the eurozone, data revealed that the unemployment rate rose to 9.7%, in line with market expectations, which raised concerns that recovery could still be destabilised, dulling demand for the euro.
• Last week the Bank of England completed its £175 billion asset purchase programme and so investors are now looking toward an extension of QE in their meeting this week.
• Analysts have noted that until the market is confident the BOE is done with quantitative easing, it is going to be very difficult for sterling to rally significantly from current levels.

Related posts:

1. The euro posted gains against the US dollar on Friday and has reached back over 1.46 this morning
2. Pound advanced against a broadly weaker euro yesterday, but has stumbled in trading this morning
3. Pound edged higher against the euro yesterday and has consolidated its position this morning

The aussie dollar reversed recent losses yesterday after positive US GDP data encouraged investors to buy-back into perceived riskier currencies.

• The aussie pulled back nearly two cents, or 1.0%, bringing the sterling/aussie pair back down to trade around 1.80 as the data spurred demand for risk.
• Investors have been cashing profits in the Australian currency recently as global equities took a downturn, but yesterday’s figure saw traders revive long positions in the aussie.
• Analysts noted that the figures were a near-perfect combination for riskier assets: strong enough to encourage those with an optimistic outlook on the financial markets, but not too strong to generate expectations of accelerated monetary tightening from the Federal Reserve.
• In trading this morning, the pound has halted its fall and is currently trading up around 0.2% with price hovering above 1.8100.

Related posts:

1. Aussie hits new highs on sterling weakness and a rise in demand for higher-yielding currencies
2. Sterling is currently trading higher against the aussie following upbeat comments and a move to cash profits
3. Aussie has advanced further vs sterling as talk of interest rate hikes is renewed

Sterling closed marginally up against the US currency yesterday, although the price was pulled back significantly following weak US housing data.

• In early trading, the pound lost ground to the dollar as falls in equity prices encouraged investors to trim their exposure to perceived higher risk currencies.
• UK stocks slid to a three-week low, helping to push the price down to 1.63, well under a level just below 1.67 reached only a week ago.
• The pound was then able to make slight gains in the afternoon after positive durable goods data weakened dollar demand, but the pair found resistance at 1.64.
• This data was then offset in the afternoon after it was revealed that sales of new homes in the US declined in September, against analyst expectations of a slight increase, which supported an upside movement
• In trading today, markets will take direction from the US third-quarter GDP figure at 09:30, which is predicted to show a growth rate of 3.3%. Should it undershoot this forecast, investors are likely to move back into the dollar.

Related posts:

1. Sterling edged up against a broadly weaker dollar ahead of important central bank announcements
2. Sterling edged down against the dollar yesterday, but is currently trading back over 1.65 this morning
3. A strong kiwi dollar shrugged off weak data from the US to post gains against sterling on Friday

The pound continued to advance against a broadly weaker single currency yesterday, hitting a six-week high of 1.1167 as investors trimmed their euro holdings.

• Preliminary CPI data from Germany revealed that consumer prices remained flat on the year in October. Monthly data showed that the index did rise by 0.1% in October from September, though this rise failed to garner support for the euro.
• The markets also saw a slight withdrawal of risk activity yesterday as weak housing data in the US renewed concern over the health of the global recovery.
• The data dragged European equities down to three-week lows, which appeared to impact more severely on the single-currency, enabling the pound to gain.
• This morning, the pound is consolidating its position above 1.1100, with analysts reiterating that sterling is likely to remain in a holding pattern until next week’s BoE asset purchase decision.
• Investors are cautious amid uncertainty over whether the Central Bank will extend their quantitative easing programme, and so sterling movements may continue to be dictated by risk appetite in over the coming days.

Related posts:

1. Selling pressure held firm on the pound yesterday, with the euro price falling below €1.08
2. Weak equities undermined the aussie’s upward trend yesterday allowing the pound to post marginal gains
3. Bearish sentiment towards the pound prevailed yesterday, but the sterling is rallying strongly against the euro today

Sterling edged up against the aussie yesterday, benefiting from improved UK sales data, which supported claims that the UK economy is recovering.

• On Monday evening, MPC member Adam Posen, following negative GDP data, stated that there were still signs of an economic recovery even if Britain is behind other countries in pulling out of the recession.
• His statement found support yesterday after the UK CBI sales showed month-on-month improvement, beating market expectations and buoying demand for the UK currency.
• The UK currency has pushed higher in trading this morning after investors pared bets of a steep rate rise in Australia after inflation data did not increase by as much as some had anticipated.
• The quarterly CPI figure came in at 1.0%, which tilted the markets away from pricing in a more aggressive upward rate movement at the next RBA meeting on Nov 3 rd.
• Currently the pair are trading around the 1.80 level, just below a three-week high for the pound.

Related posts:

1. Pound advanced against a broadly weaker euro yesterday, but has stumbled in trading this morning
2. The pound has failed to sustain yesterday’s rally against the aussie, plummeting over 2 cents so far this morning
3. Sterling edged up against a broadly weaker dollar ahead of important central bank announcements

Sterling closed up against the dollar yesterday, but slipped back nearly a cent from its intra-day high after a survey showed that consumer confidence in the US disappointed market expectations.

• In early trading, the markets continued to take the pound higher with analysts noting that long term investors and Asian reserve managers were attracted by sterling’s one-week low.
• This trend was maintained as the UK CBI retail sales index advanced to a balance of +8 in October from a balance of +3 in September, the largest advance since June 2007, beating forecasts.
• There was also support for the UK currency as the oil giant BP reported third-quarter profits of $4.98bn (£3bn), which experts said “obliterated” market predictions.
• However, the dollar trimmed its losses in the afternoon after a survey revealed that US consumer confidence dropped in October. The index produced a figure of 47.7, substantially less than the 53.7 forecast, which cautioned traders against risky investments.
• The weak report bodes ill for the US economy indicating restrained consumer spending, and suggests that the recovery is not as entrenched as initially thought.

Related posts:

1. Pound fell lower against the dollar yesterday, but found some support to ease its rate of decline
2. More positive investor sentiment returned to the UK yesterday, supporting a slight pound recovery
3. Stong servies data and rallying equities were unable to buoy a weak pound yesterday, enabling the dollar to creep up

Sterling pushed back over 1.10 in trading yesterday as data revealed a pick-up in UK realised sales dulling concerns over the health of the British economy.

• The pound continued to recover last week’s losses as the UK CBI realised sales index revealed a significant monthly increase in sales volumes, beating market forecasts.
• Conversely data also showed that lending to the eurozone’s private sector declined in September compared with the same period a year earlier, highlighting notable constraints on financing to companies and households that could damage the region’s economic recovery.
• Private-sector lending decreased 0.3% in September, after rising by an annual rate of 0.1% in August, data from the ECB revealed.
• In addition, traders noted good demand for sterling from longer term investors and Asian reserve managers who were keen to sell the dollar following the US currency’s sharp gains in the previous session.
• However, the pound remains range bound, slipping back marginally this morning, as investors remain cautious after MPC member Adam Posen in his speech on Monday evening reminded market players that UK officials may maintain stimulus programs in order to cement the recovery.

Related posts:

1. Negative UK economic data pushes the pound down against a broadly weakened dollar
2. Pound advanced against a broadly weaker euro yesterday, but has stumbled in trading this morning
3. The increase in retail sales spurred the New Zealand dollar

The pound posted gains against the aussie yesterday, reversing its steep fall at the end of last week as investors cashed profits, closing up 0.8% at 1.7822.

• The aussie was broadly weaker in trading yesterday as investors took the opportunity to take profits following sharp gains made on Friday.
• The price of gold also continued to fall yesterday, discouraging investment in the commodity linked currency. Gold quoted around 1053/oz yesterday, though probably due more to profit taking than lack of strength.
• In trading this morning, the aussie is slightly up on the day, though investors are likely to remain wary ahead of sales data in the UK and a consumer confidence survey in the US
• In addition, investors may well caution against long positions ahead of Thursday when the US 3 rd quarter GDP figure is released. The economy is forecast to have grown by 3.3% in the quarter, though if it undershoots this target it could trigger a wave of selling in riskier currencies.

Related posts:

1. Aussie made significant gains at the end of last week and is continuing to advance this morning
2. Pound made gains against the aussie on Friday following weak US data
3. Aussie made strong gains yesterday as further positive economic data supported investor demand

Further doubts over the dollar’s reserve status stoked selling in the US currency yesterday, enabling the pound to recover some of Friday’s heavy losses.

• The greenback lost ground broadly after an article stated that the People’s Bank of China may be considering raising the share of the euro and the yen in its foreign exchange reserves, though the dollar should still remain dominant.
• However it was later revealed that the article was merely the author’s “point of view,” which capped sterling’s gains, as investors checked their dollar selling.
• In addition, the pound found support as declines at the end of last week were seen by some investors as over-stretched, suggesting that the market has oversold sterling.
• However, as the US markets came online, global stocks took a dive into the red, enabling the haven currency to trim its losses.
• Analysts noted that given the huge amount of bearish trades on the dollar in recent weeks, a near-term dollar recovery could be on the horizon.
• In trading today, investors will be looking for direction from sales data in the UK, released at 11:00, and a consumer confidence survey in the US, released at 14:00.

Related posts:

1. Sterling edged up against a broadly weaker dollar ahead of important central bank announcements
2. Negative UK economic data pushes the pound down against a broadly weakened dollar
3. The pound/US dollar price is slowly rising as investors broadly sell the greenback

After an unsteady early session, the pound rebounded strongly from Friday’s sell off, to close 1.1% up.

• The pound recovered steadily through the day after data revealed that the German Gfk consumer sentiment indicator dropped to 4.0 from 4.2 in October, weaker than the median forecast of 4.5, dulling demand for the single currency.
• In addition UK business confidence rose to the highest in 18 months, according to a third-quarter survey, with 19% of executives polled saying the outlook for business is “good” or “very good,” up from 9% in the previous quarter, which stoked demand for the pound.
• Analysts hypothesised that the pound may be considerably oversold at its current value, which does present a good opportunity for British businesses.
• Analysts also noted two opposing arguments developing: the first is a widely held view that based on better PMI survey data there is a good chance that GDP data for Q3 will be revised up.
• The second is the growing certainty that the BoE will announce a step up in QE at next Thursday’s policy meeting. The offsetting nature of these views may contain volatility in the approach to the November 5 th policy meeting.

Related posts:

1. Pound slid back against the euro yesterday, but has rebounded strongly in trading today
2. Bearish sentiment towards the pound prevailed yesterday, but the sterling is rallying strongly against the euro today
3. The pound posted a one cent gain against the euro yesterday, buoyed by the MPC minutes

The pound was broadly sold on Friday following a weak GDP figure, losing three cents to the kiwi dollar, to close back down at 2.1607.

• Data revealed that Britain’s economy has now shrunk for six quarters after it contracted by 0.4% in the most recent quarter, the longest period of contraction since records began in 1955.
• Analysts have now renewed their discussion over the possibility of the Bank of England retaining, or even extending, its £175 billion QE programme, which would compound sterling’s weakness.
• The news also confirmed that the BoE are likely to keep the benchmark interest rate at a record low of 0.5% firmly into 2010, lessening the appeal of sterling assets.
• In response, the markets took the kiwi nearer its multi-year highs hit earlier this month, and this trend has continued in trading this morning as investors continue to take their lead from Friday’s data.

Related posts:

1. Sterling fell back significantly against the dollar on Friday, as GDP figure disappoints the market
2. Sterling traded strongly at the end of last week against the kiwi but has slipped back sharply this morning
3. Sterling has resumed its recent upward trend against the kiwi, buoyed by brief market selling in high-yielders and by the MPC minutes

Sterling lost three cents (1.9%) to the dollar, as a weak UK quarterly GDP figure abruptly halted the pound’s recent rally.

• The greenback gained the most daily value against the pound in a month as the UK’s economy unexpectedly contracted in the third quarter, giving the Bank of England more reason to expand emergency measures to spur growth.
• It is the first time UK gross domestic product has contracted for six consecutive quarters, since quarterly figures were first recorded in 1955.
• The pound fell more than a cent against the US dollar following the release of the figures, losing 0.6% in two minutes, with traders particularly concerned that the UK may turn out to be the only major economy still in recession.
• The unexpected decline in the services sector was the key factor behind the drop. The UK economy’s reliance on the service sector, and financial services in particular, may be the reason why it is still in recession when partners such as France and Germany exited earlier in the year.
• This suggests that the likelihood of an expansion in quantitative easing by £50bn or so over the next quarter is rising, which will put further pressure on the pound.

Related posts:

1. UK economy contracted by 0.4%, which has and will continue to weigh heavily on sterling
2. Broad dollar weakness and an increase in demand for sterling has pushed the price back near $1.63
3. Sterling edged down against the dollar yesterday, but is currently trading back over 1.65 this morning

In an uncertain day for the UK economy, the pound lost as much as 2.0% to the euro on Friday, sharply reversing its recent rally to close down at 1.0862.

• Data revealed that the UK economy unexpectedly contracted by 0.4% between July and September this year, confirming that the UK is still in recession.
• Quarterly growth of 0.2% had been expected, although expectations had been tempered by recent figures showing no growth in retail sales in September and a 2.5% decline in industrial output in August.
• Importantly, the disappointing GDP figures may now lead the Bank of England to consider the possibility of extending their asset purchase scheme in their November meeting in order to sustain the evidently fragile recovery.
• Recent comments from policymakers had led markets to believe that the UK would be tightening monetary policies, however the tone is likely to be quite different following Friday’s GDP figure.
• In trading this morning, the pound remains under pressure with investors continuing to sell the UK currency following last week’s disappointing data.

Related posts:

1. Pound continued to climb against the aussie yesterday as confidence in the UK economy improved
2. Sterling continued to rally at the end of last week, but has relinquished gains in trading this morning
3. The UK economy is showing signs of recovery, which has buoyed the ailing pound

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.
• Mr Bollard said that kiwi strength was “not necessarily an obstacle to raising the cash rate,” encouraging investment in the higher-yield currency.
• In trading this morning, the New Zealand dollar has weakened, enabling the pound to advance back towards 2.20, as Chinese data failed to do more than meet market forecasts, giving traders a reason to cash profits.

Related posts:

1. Positive economic data from NZ, keeps the kiwi rallying higher vs sterling
2. Positive data from NZ keeps the kiwi advancing against the pound
3. Kiwi halted its climb yesterday, as demand for higher-yeilding currencies weakened

A broadly stronger pound hit a two-week high against the aussie, briefly rising over 1.8000, as confidence in the UK economy gained momentum.

• Sterling jumped following the minutes from the Bank of England’s latest policy meeting, which dampened expectations of an extension to quantitative easing.
• The minutes appeared to move the balance of market expectations to the possibility of a pause of the government’s asset purchase scheme in November, reversing recent speculation.
• In addition, the aussie dollar found its strength undermined as commodity prices, most notably oil, turned lower, discouraging investors from the higher-yielding currency.
• In trading this morning the pound has continued to advance, reaching back over 1.80, as investors cut long positions in the “riskier” currency after Chinese data dashed expectations of some who were betting on a positive surprise.
• The most significant figure, the Chinese 3rd quarter GDP, revealed a growth rate of 8.9%, bang in line with expectations, however there had been hopes of over 9.0%.

Related posts:

1. Aussie resumes its climb against the pound, but has capped gains this morning
2. Strong commodity prices and doubts over the UK economy allow the aussie to gain further ground
3. Sterling made substantial ground on the dollar yesterday as the BoE showed no sign of loosening montary policy further

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.
• Additionally, the pound was given further support after Mr King said in an opinion piece in Scotland’s Herald newspaper that, “it would be wise to take account” of the prospect of higher interest rates, heightening confidence in the UK economy.
• The dollar is up slightly in morning trading as a raft of Chinese data, though positive, failed to offer any major surprises, gaining in line with market expectations.

Related posts:

1. Sterling loses further ground to the dollar on specualtion of a further extension of QE
2. Pound was supported yesterday by the MPC minutes but has resumed its slide so far today
3. The pound posted a one cent gain against the euro yesterday, buoyed by the MPC minutes