FXstreet.com

FX Strategy

This report has been deactivated

1

0

UK: Thoughts on the SLS and EUR/GBP

Fri, Sep 19 2008, 08:01 GMT
by John Hydeskov

Danske Bank A/S


  • • The Bank of England's Special Liquidity Scheme has allowed UK banks to swap illiquid assets for treasury bills since April. The SLS has been enormously popular among UK banks as this has given them funding in return for illiquid mortgage-backed securities.
  • • The SLS should have come to an end on 20 October 2008 but due to 'disorderly market conditions' the BoE yesterday announced an extension to 30 January 2009. That was to provide additional time for banks to plan their access to the scheme in 'an orderly fashion'.
  • • We argue that an end of SLS could generate temporary demand for sterling relative to the euro, all other things being equal. There are, however, several caveats to this.






Archive

Danske Bank  | Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com

Legal disclaimer and risk disclosure

This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

Related reports

European Market Update - German IFO survey hits 15 month highs by TradeTheNews.com
Tue, Nov 24 2009, 11:00 GMT

Timeframe Breakdowns - EURUSD / EURGBP / EURJPY / GBPUSD by Turtle Futures
Tue, Nov 24 2009, 09:19 GMT

Today's Trading Signals by Financial Trend Analysis
Tue, Nov 24 2009, 08:37 GMT

Sunrise Market Commentary: Currencies - FX: EUR/USD revisits the 1.5000 mark by KBC Bank
Tue, Nov 24 2009, 08:03 GMT

Forex Technical Analysis - EUR/USD: (1.4945) In channel off 1.3832 by KBC Bank
Tue, Nov 24 2009, 06:13 GMT

eurgbp

View All

Related content

Forex: EUR/USD: Euro accelerates downtrend, testing 1.4900
FXstreet.com | Tue, Nov 24 2009, 07:18 GMT

Forex: EUR/GBP pulls down to 0.9000 after hitting a fresh 1-week high at 0.9040
FXstreet.com | Mon, Nov 23 2009, 14:17 GMT

Forex: EUR/USD: Euro rallies past 1.4945/50 area
FXstreet.com | Mon, Nov 23 2009, 07:25 GMT

EUR/GBP higher as cable struggles to maintain gains
Forex Live | Mon, Nov 23 2009, 03:29 GMT

Forex: EUR/GBP trades at the highest level in a week
FXstreet.com | Fri, Nov 20 2009, 19:20 GMT

eurgbp

View All

Interested in forex trading? forex brokerage firms!


FX Solutions LLC
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
MF Global FXA Securities Ltd.
Contact the broker/FDM
Open a demo account
GFT
Contact the broker/FDM
Open a demo account
Saxo Bank A/S
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.