Tag Archives: uk banks

US Dollar Declines

The US Dollar has weakened overnight following reports the US government may nationalise major US banks as a result of the financial crisis. Sterling has staged a minor rally following the publication of retail sales figures for January and EU leaders met over the weekend to discuss economic strategy ahead of the G20 summit in London in April. Continue reading

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Euro Under Pressure

The Pound fell to a two week low against the Dollar yesterday as minutes from the MPC meeting revealed quantitative easing is increasingly likely for the UK. The Euro is under pressure due to concerns over the economic situation in Eastern Europe and the US has passed a $275 billion package to address the crisis in the housing market.
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G7 fails to inspire

Currency exchange rates and equity markets are lower this morning after G7 finance ministers failed to provide concrete plans for economic recovery after their meeting in Italy over the weekend. Issuing a statement that was heavy on rhetoric but light on policy, the leaders have inadvertently added to pressure on the Federal Reserve to produce a rescue package. Confidence and growth prospects remain crucial to global economic sentiment. Continue reading

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Eurozone GDP down -1.5%

The Eurozone economy contracted -1.5% in the fourth quarter of 2008, dragging annual growth down to -1.2%. US retail sales figures yesterday showed an unexpected increase by 1% in January, providing a slight boost in risk appetite and allowing the Pound to recover some of the losses made earlier in the week. Continue reading

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Rate decisions due

Trading is volatile this morning ahead of the Bank of England and ECB interest rate decisions due this afternoon. US unemployment figures have risen by over 500,000 in January alone and shares in Europe’s major banks have declined as Swiss Re and Deutsche Bank have reported massive profit losses for 2008. Continue reading

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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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Pound under Pressure

The Pound has continued to slump against the US Dollar reaching 1.36 yesterday, the lowest level since 1985. Sterling continues to be battered by spiralling government debt and the likelihood of more unconventional monetary easing measures from the MPC. Wall Street equities rallied reviving risk appetite internationally, however Sterling remained exempt and suffered against most of its international currency partners.
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Sterling gains some Strength

Sterling has appreciated against the Euro following the release of negative economic data from the Eurozone this morning. The US, Australian and Kiwi Dollars are trading near recent highs as interest rate cuts are predicted from the Bank of England and ECB this month. 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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Pound Continues to Slide

Sterling has sunk again against the Euro and US Dollar ahead of UK trade figures released this morning. Negative underlying trends and production figures are capping the value of Sterling at present and it remains hovering just above all time lows versus the Euro. Continue reading

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