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.
Posts Tagged ‘Sterling’
Sterling fell back significantly against the dollar on Friday, as GDP figure disappoints the market
Posted by admin on October 26th, 2009
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UK economy contracted by 0.4%, which has and will continue to weigh heavily on sterling
Posted by admin on October 26th, 2009
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.
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.
Pound continued to climb against the aussie yesterday as confidence in the UK economy improved
Posted by admin on October 22nd, 2009
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.
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.
The pound posted a one cent gain against the euro yesterday, buoyed by the MPC minutes
Posted by admin on October 22nd, 2009
Sterling reached a one-month high against the single currency, rallying strongly as the BoE’s latest policy meeting made no mention of further QE.The MPC minutes gave substantial support to the pound, which advanced 1.1% to reach a high of 1.1112, after they sounded a more positive tone than recent statements from policymakers suggested. It was revealed that the nine member committee had voted unanimously to leave the size of its asset purchase scheme unchanged at £175 billion, as had been widely expected, and made no direct reference to extending QE in the future.
Sterling has resumed its recent upward trend against the kiwi, buoyed by brief market selling in high-yielders and by the MPC minutes
Posted by admin on October 21st, 2009
Sterling climbed over a cent and a half against the kiwi in trading yesterday as the market briefly turned bearish on higher-yielding currencies. The pound reversed losses incurred on Monday, but closed the day some way from its intra-day high of 2.2000 as investors held back from taking significant positions ahead of the UK MPC minutes released today. The kiwi dollar, which has broadly risen as the global economy shows increasing signs of recovery, fell back as demand for “riskier” assets stumbled following some weak economic data from the US economy.
The pound is gaining against the aussie as risk appetite briefly dulls and sterling demand picks up
Posted by admin on October 21st, 2009
The pound posted gains against the aussie dollar yesterday as risk appetite waned slightly with weak data emerging from the US and equities slipping back. The US PPI unexpectedly decreased by 0.6% in September, disappointing expectations of a 0.1% rise, which raised concern over the strength of the US recovery. Data from the US housing market also fell below market forecasts, dulling investor appetite to buy into perceived “riskier” assets, weakening demand for the aussie. Sterling’s advance was relatively steady though, with the price rising less than 0.4%, as the broad strength of the Australian currency prevented traders from selling their investments in any great number.
Sterling edged down against the dollar yesterday, but is currently trading back over 1.65 this morning
Posted by admin on October 21st, 2009
Sterling capped its five-day upward trend against the dollar, falling back from a one-month high of $1.6487 as weak economic data supported the haven currency. In early trading, sterling held steady against the dollar after UK public finances showed a weak figure but better than market expectations, which offset the negative impact of news that Qatar are selling a significant stake in Barclays bank. Data showed a deficit reading of £14.8 billion bringing Britain’s public spending to its worst six months on record, however, the data was better than forecasts, which analysts said boosted sterling’s gains.
Pound slid back against the euro yesterday, but has rebounded strongly in trading today
Posted by admin on October 21st, 2009
Sterling dipped slightly against the single currency, relinquishing gains in the afternoon as US equities slipped back, closing the day down just 0.1% at 1.0958. In early trading, investors picked up on comments from the ECB President who added to remarks from other eurozone officials expressing worries about the strength of the single currency. In response the markets took the euro slightly lower, enabling the pound to reach up over 1.10, near Monday’s 3-week high. In addition, the pound gained slight support after the UK public spending deficit in September fell short of market expectations, buoying investor sentiment.
Pound reached over $1.64 yesterday, but has slipped half a cent in trading this morning
Posted by admin on October 20th, 2009
Having traded in the red during the morning session, the pound rebounded back over $1.64, climbing for the fifth consecutive day and reaching a near one-month high of $1.6422. The pound initially fell against the dollar, relinquishing last week’s gains after the Sunday Times said Bank of England policy maker Adam Posen may support an extension of the central bank’s asset-purchase programme. Posen added that he was “not worried about overshooting inflation right now,” which many analysts have said will become an issue as the economy begins to grow. Last week, following the words of Mr Fisher, the market moved to discount a scenario where it was more likely that asset purchases would be paused.
Having held steady in trading yesterday, the pound has slipped back this morning as equity markets stumble
Posted by admin on October 20th, 2009
Sterling suffered early losses against the euro yesterday after a BoE member hinted that the QE programme should be extended, but the pound recovered to close the day on level footing. Adam Posen stated that the central bank should continue its quantitative easing programme as the financial system has yet to show signs of a sustained recovery. He added that he was unconcerned about the possibility of further monetary stimulus risking a rise in inflation. His comments appeared to eclipse positive house price data from property website Rightmove, which showed that asking prices for homes in England and Wales were up on an annual basis for the first time in more than a year in October.
Sterling traded strongly at the end of last week against the kiwi but has slipped back sharply this morning
Posted by admin on October 19th, 2009
Sterling managed to close last week at a near two-week high of 2.2056 against kiwi, as the UK currency continued to build on support from a BoE official. The ailing pound managed to build on Thursday’s gains, rallying a further 1.2% against the kiwi on Friday, in the wake of a Bank of England policy maker signaling satisfaction with the impact of the central bank’s quantitative-easing strategy. Investors took the opportunity to take strong profits that had been built up earlier last week, taking the sterling / kiwi price back over 2.20.
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
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.
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The pound made further ground against the US dollar on Friday, buoyed by positive market sentiment
Sterling extended sharp gains against the dollar, as traders cut short pound positions after many reckoned earlier bets against the currency were overdone. Sterling found support following further upbeat comments from a BoE member concerning the quantitative easing programme. Sterling reached up to a three-week high against the dollar, peaking just below 1.64 before closing the week at $1.6353. Initially sterling trimmed its position after sterling/dollar stop-loss orders were triggered at $1.6300, but some analysts noted that the pound would continue to be supported as investors had taken up fresh long positions in sterling and were willing to hold onto them.
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