FXstreet.com

Daily FX Commentary

This report has been deactivated

0

0

Daily FX Commentary

Mon, Oct 13 2008, 11:06 GMT

Investica Ltd


UK accelerates bank rescue plan

The Sterling trading pattern was similar to that in recent days and it weakened again against the dollar once European trading wound down. The UK currency, however, rallied again late in New York as Wall Street erased its losses with volatility extremely high.

Over the weekend, the government accelerated its plans to inject capital into four main UK banks with potential stakes of GBP45bn. the government will underwrite capital-raising attempts and will take large stakes if the private funding is not forthcoming. There was a Sterling relief rally on hopes that faster action would improve confidence towards the banking sector and stabilise credit conditions, but economic fears will remain very high.

The UK inflation data would have been important this week, but the significance has been reduced sharply by the intense stresses in the credit and equity markets. There will be further pressure on the Bank of England to cut interest rates again quickly to help restore market stability with strong expectations of a further cut at the November meting, if not earlier.  Relief dominated on Monday with the UK currency rallying to above 1.72 against the dollar


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

FX View - Headline unemployment rate creates dollar shocker by Interactive Brokers LLC
Fri, Nov 6 2009, 18:41 GMT

Forex Daily Overview - USD mixed, unemployment rises to 10.2% by Easy Forex
Fri, Nov 6 2009, 18:31 GMT

Forex Daily Analysis - USDJPY is moving towards support level at 89.55 by Investija.com
Fri, Nov 6 2009, 14:35 GMT

Forex Technical Report - U.S. Markets Brace for Jobs Data by ForexHound.com
Fri, Nov 6 2009, 13:29 GMT

Forex Technical Report - Dollar Trading Lower Ahead of U.S. Jobs Data by ForexHound.com
Fri, Nov 6 2009, 13:19 GMT

gbpusd

View All

Related content

CURRENCIES: Dollar Dips Vs. Yen As Jobs Data Have Fed On Hold
Dow Jones | Fri, Nov 6 2009, 22:14 GMT

Forex: GBP/USD: Cable hovering around 1.6600
FXstreet.com | Fri, Nov 6 2009, 20:34 GMT

CURRENCIES: Dollar Dips Vs Yen As Jobs Data Has Fed On Hold
Dow Jones | Fri, Nov 6 2009, 20:25 GMT

CURRENCIES: Dollar Index Dips After Job Data Keeps Fed On Hold
Dow Jones | Fri, Nov 6 2009, 17:36 GMT

Forex: GBP/USD fails to hold above 1.6600
FXstreet.com | Fri, Nov 6 2009, 16:29 GMT

gbpusd

View All

Interested in forex trading? forex brokerage firms!


Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
MG Financial Group
Contact the broker/FDM
Open a demo account
Deutsche Bank
Contact the broker/FDM
Open a demo account
IG Markets
Contact the broker/FDM
Open a demo account
Alpari (UK) Limited
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.