FXstreet.com

Daily FX Commentary

This report has been deactivated

0

0

Daily FX Commentary

Wed, Oct 8 2008, 10:44 GMT

Investica Ltd


Bank rescue underpins Sterling

Sterling weakened sharply in Europe on Tuesday as there were renewed fears over the UK banking sector with particular fears surrounding the Royal Bank of Scotland. The UK currency dipped to lows near 1.73 against the dollar before a rebound.

The market turmoil will increase fears that the already very weak UK economy will deteriorate further. There will be very strong pressure on the Bank of England to act this week with markets increasingly speculating over at least a 0.50% rate cut on Thursday.

The government confirmed that it would announce a package of support for the banking sector including capital injections through government stakes in the main banks while there would be additional funding to boost inter-bank lending.

Measures to boost capital will underpin confidence to some extent, although sentiment towards the financial sector, economy and currency will remain very fragile on deep recession fears. Sterling dipped to near 1.74 against the dollar and 0.7830 against the Euro on a wider increase in risk aversion as market fears increased.


Archive

Investica Ltd http://www.investica.co.uk | tim.clayton@investica.co.uk

Legal disclaimer and risk disclosure

Investica's market analysis is not investment advice and must not be taken as recommending particular market positions. Investica can take no responsibility for any actions taken by investors.

Related reports

Weekly Market Commentary - Fed, BOE and ECB kept rates on hold by Mizuho Corporate Bank
Fri, Nov 6 2009, 15:45 GMT

Friday Notes - The week of the central banks by UniCredit Group
Fri, Nov 6 2009, 12:23 GMT

Top Fundamental Stories - PPI Inclines Ahead of the Inflation Report by ecPulse.com
Fri, Nov 6 2009, 10:20 GMT

Market Session Snap-Shot by ACM - Advanced Currency Markets
Fri, Nov 6 2009, 09:55 GMT

Daily Forex Overview by Dukascopy Swiss FX Group
Fri, Nov 6 2009, 08:50 GMT

boe, eur, markets, uk, gbp

View All

Related content


Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
FXDD
Contact the broker/FDM
Open a demo account
Capital Market Services, L.L.C.
Contact the broker/FDM
Open a demo account
CitiFX Pro
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.