Daily World Market Update

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Bank of England Opt For A Swift Half
Fri, Nov 6 2009, 08:35 GMT
by Jeremy Cook
World First UK Ltd
All this and more is available on our video blog
All in all the Bank of England decision to raise quantitative easing by an additional £25bn turned out to be a bit of a non-event in sterling terms. £50bn would have seen sterling retreat, nothing would have seen it jump higher so it naturally follows that a £25bn expansion is the most sterling neutral of decision.
One analyst described it as ‘one last heave’ we however believe it’s a gamble on an upwards revaluation of the preliminary GDP figure. Should the recovery continue to stall and the High St has an awful Christmas this bet may not come off.
Sterling hit highs of 1.6620 against the USD and 1.1190 against the euro yesterday. Barring any fun and games with today’s non-farm release or stumble in equity markets we believe that sterling should operate in a range of 1.62 - 1.6740 against the USD and 1.10 -1.1250 against the euro for the next week.
There was more data than just the MPC decision which helped GBP upwards yesterday: industrial and manufacturing production were both higher, validating Monday’s strong PMI release, whilst EU retail sales were poor.
Data is dominated by the Non-Farm Payrolls announcement from the US today. Should we see a better figure than consensus (-175k) we would expect USD to strengthen against its crosses and retreat should the figure come out worse.
Have a great weekend.
Latest Exchange Rates At Time Of Writing
| 1.1156 | 1.1184 |
| 1.6603 | 1.6627 |
| 1.486 | 1.4883 |
| 150.17 | 150.48 |
| 1.8134 | 1.8162 |
| 2.2877 | 2.2922 |
| 1.7662 | 1.7698 |
| 0.7247 | 0.7269 |
| 12.55 | 12.59 |
| 7.549 | 7.5882 |
| 4.7217 | 4.7507 |
| 134.43 | 134.7 |
Published on
Fri, Nov 6 2009, 08:41 GMT
Archive
- Pound Idles Lower
Published On Fri, Nov 20 2009, 10:59 GMT
- BOE Minutes see the pound weaken
Published On Thu, Nov 19 2009, 09:26 GMT
- Pound Gets Inflation Boost Before BOE Minutes
Published On Wed, Nov 18 2009, 10:09 GMT
- Dollar Index slides to 15 month lows
Published On Tue, Nov 17 2009, 08:33 GMT
- European Recession Is Over
Published On Mon, Nov 16 2009, 10:29 GMT
[ View All ]
World First UK Ltd
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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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