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Judgement Day For Sterling

Thu, Nov 5 2009, 08:46 GMT
by Jeremy Cook

World First UK Ltd


All this and more is available on our video blog

And so it is here. The decision that will lay down the path for sterling for possibly the next 12 months will be announced at Noon today.

The interest rate decision is once again a foregone conclusion and the focus will be on whether the Bank of England will extend its asset purchases or not. We are in the camp that believe that they will extend and therefore that sterling will take a blow after its recent good run. This blow may however be tempered by any accompanying statement.

the MPC would have been swelled by the news that the services industry in the UK expanded nicely in the month of October with the services PMI coming out at 56.7 against an expectation of 55.5. This further indicates that the GDP figures released 2 weeks ago by the ONS will be appraised higher.

The Fed meeting was a bit of a damp squib as they decided to continued their policy of no change with the key statement of rates staying ultra low for an ‘extended period’. Market reaction was slight.

We of course also have the ECB decision today; a hold on interest rates and a nod towards the December meeting are expected

Other than the big central bank decisions we have Industrial and Manufacturing Production from the UK and EU Retail Sales before Initial Jobless Claims from the US this afternoon.


Latest Exchange Rates At Time Of Writing

Indicative RatesSellBuy
GBP/EUR1.11221.1148
GBP/USD1.65011.6525
EUR/USD1.4821.4843
GBP/JPY149.12149.47
GBP/AUD1.82231.8249
GBP/NZD2.29542.3
GBP/CAD1.7591.7628
NZD/USD0.71780.7198
GBP/ZAR12.6512.68
USD/ZAR7.65527.6908
GBP/PLN4.73764.7551
EUR/JPY133.9134.26


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World First UK Ltd  | Regent House, 16-18 Lombard Road, London, SW11 3RB
http://www.worldfirst.com/ | enquiries@worldfirst.com

Legal disclaimer and risk disclosure

Disclaimer: The comments put forward by World First are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Any rates given are “interbank” ie for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts.

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