Tag Archives: Oil Price

Pound gains on Euro

The Pound made significant gains on the Euro overnight as comments from leading speculator George Soros and negative economic data placed the single currency under pressure. US GDP figures out this afternoon are likely to be a source of market volatility as they are expected to show a deep contraction in quarter 4 of 2008. Continue reading

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UK Government to Insure Banks

The Government has announced a second series of measures this morning aimed at insuring banks and alleviating toxic assets. Financial think-tank Ernst & Young has predicted UK unemployment is to hit 3.4 million by the end of 2010 and equity markets around the world have staged a minor rally boosted by the announcement of rescue packages in the US and UK.
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Bank cuts to 1.5%

The Bank of England cut interest rates to 1.5%, the lowest level in history yesterday in a move that was expected by markets and had little impact on Sterling. The ECB is coming under increasing pressure to cut interest rates further as weak economic data shows the downturn is gaining momentum in the Eurozone. Continue reading

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US GDP Contracts 0.5%

The US economy contracted 0.5% in the third quarter sending global equity markets lower yesterday. The US accounts for 25% of global GDP and economic contraction in the US has significant implications for global market confidence. Otherwise, market movement is limited due to the holiday period. Continue reading

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UK GDP contracts 0.6%

GDP figures this morning show a 0.6% contraction in the UK economy for the third quarter and new mortgage approval figures have declined to 17.773k for November. US equity markets have weakened after the S&P index labelled General Motors with a ‘high likelihood’ of bankruptcy.
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Pound nears Parity

Sterling continued its decline against the Euro yesterday after the MPC minutes revealed a 9-0 vote in favour of a 1% base rate reduction. Labour market data in the UK revealed a 0.2% rise in the official unemployment rate, taking it to 6% for October and the Pound continued to plunge towards parity with the Euro. Continue reading

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Fed Slashes Rates to 0.25%

The Federal Reserve slashed interest rates to an unprecedented 0.25% yesterday, making the current base rate the lowest in US history. The decisive reduction was announced amid further ‘quantitative easing’ measures to stimulate the economy and ward off deepening recession. The US Dollar depreciated following the news and global equities climbed. Continue reading

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Pound hits Record Low

The Pound sunk to a record low against the Euro yesterday of 1.1385, the lowest since the Euro began, after the NISER announced an economic contraction of 1% in the 3 months to November. The OECD has reported the global recession could be longer and deeper than originally thought with the UK being one of the worst economies hit. Continue reading

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Production Statistics hurt Sterling

Sterling remains weak this morning after production statistics show the UK economy is contracting at the fastest rate since 1990. The Euro has strengthened overnight against the Pound and US Dollar and European Commission President Jose Manuel Barroso has called for an EU-US agreement to battle recession. Continue reading

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Pound Remains Under Pressure

The Pound fell to another new low versus the Euro yesterday while the US Dollar weakened ahead of an expected 0.5% reduction in the base rate from the Federal Reserve. The banking sector is reeling as the extent of Bernie…

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