Daily FX Commentary
This report has been deactivated

1

0
Speculation undermines Sterling
Wed, Dec 3 2008, 11:33 GMT
by Tim Clayton
Investica Ltd
Sterling remained under pressure on Tuesday, weakening to test support below the 1.48 level against the dollar while it also weakened to 0.8550 against the Euro.
In comments on Tuesday, former MPC member Buiter stated that the Bank of England could cut interest rates by 1.50% to 1.50% at this month’s policy meeting. Markets will certainly be expecting an aggressive cut in rates to help support the economy. There will, however, be calls for a more guarded approach, especially as Sterling has already weakened sharply over the past few months. Sentiment is likely to remain generally very fragile ahead of Thursday’s rate decision given the implications of reduced yield support with the UK currency also influenced strongly by degrees of risk aversion
The UK currency failed to hold above 1.50 and was unable to make any headway on Wednesday. As equity markets weakened, Sterling weakened to below 1.47. Further speculation over possible EMU entry at a depressed rate was again a negative factor for the currency. The Euro-zone, however, would be very unlikely to sanction entry at current levels and the losses are more a reflection of a general loss of confidence.
The economic data remained depressed with the services-sector PMI index weakening to a fresh all-time low of 40.1 for November from 42.4 the previous month.
Published on
Wed, Dec 3 2008, 15:18 GMT
Archive
- Daily FX Commentary
Published On Mon, Apr 20 2009, 13:05 GMT
- Daily FX Commentary
Published On Tue, Apr 14 2009, 14:16 GMT
- Daily FX Commentary
Published On Wed, Apr 8 2009, 13:09 GMT
- Daily FX Commentary
Published On Fri, Apr 3 2009, 11:47 GMT
- Daily FX Commentary
Published On Mon, Mar 30 2009, 15:36 GMT
[ View All ]
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
US: employment, not as bad as it looks by Danske Bank A/S
Fri, Nov 6 2009, 18:50 GMT
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
Weekly Market Commentary - Fed, BOE and ECB kept rates on hold by Mizuho Corporate Bank
Fri, Nov 6 2009, 15:45 GMT
US Employment: Skills and Policy Issues—Beyond Stimulus by Wells Fargo Investments, LLC
Fri, Nov 6 2009, 15:25 GMT
indicator, boe, pmi, eurgbp, 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
indicator, boe, pmi, eurgbp, gbpusd
View All
The Advisor Weblog » Majors’s sentiment for today
Fri, Nov 6 2009, 10:59 GMT
The Advisor Weblog » Starting the day
Fri, Nov 6 2009, 10:59 GMT
Tech Trading » GBP/JPY The importance of the 100 SMA.
Fri, Nov 6 2009, 10:52 GMT
The Trader’s Edge » EUR/USD Non-Farm Payroll Analysis
Fri, Nov 6 2009, 08:23 GMT
FX Market Readings » When all turn long …….
Thu, Nov 5 2009, 16:29 GMT
indicator, boe, pmi, eurgbp, gbpusd
View All
Gbpusd - Forex Forum - FXstreet.com
Tue, Apr 28 2009, 14:55 GMT
Technical analysis for EUR/USD, GBP/USD - Page 5 - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 12:07 GMT
The technical analysis of majors - Page 3 - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 12:02 GMT
Daily Market Report For All Majors - Page 2 - Forex Forum - FXstreet.com
Fri, Oct 10 2008, 11:58 GMT
indicator, boe, pmi, eurgbp, gbpusd
SPECIAL EVENT: Trade Non-Farm Payrolls LIVE - 29th Edition
Wayne McDonell | Fri, Oct 3 2008, 11:30 GMT
Outlook for the major currencies this week
Ian Copsey | Tue, Oct 7 2008, 08:00 GMT
Back to Basics: RSI
Adam Rosen | Mon, Oct 13 2008, 13:00 GMT
Dan Blystone's Daily Briefing
Dan Blystone | Wed, Oct 15 2008, 16:00 GMT
Dan Blystone's Daily Briefing - Free Access Day
Dan Blystone | Thu, Oct 16 2008, 16:00 GMT
indicator, boe, pmi, eurgbp, gbpusd
View All
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.