PhilBen
1st October 2009, 08:33
The Pound gained against the US dollar, but were mostly weaker against the rest of the majors as demand really only worked in favour of the commodity dollars.
However we did see the pound briefly hit just over 1.10 against the euro and it is a encouraging sign that we did not break the 1.08 level
The US Dollar slipped against the euro and the pound after news of the U.S. economy is likely to slow down at the end of the year amid employment and credit worries.
A Midwestern manufacturing report came in weaker than expected. The 16-nation euro edged up to $1.4646 in late New York trading from $1.4568 late Tuesday, while the British pound rose to $1.6008 from $1.5941. The economy will grow at a pace of around 2.5 percent in the October-December quarter, according to projections made by analysts at Wells Fargo, IHS Global Insight and Moody's Economy.com. If accurate, that would mark a slowing from the projected growth of at least 3 percent that many economists think occurred in the just-ended third quarter.
The Euro did make slight gains following a European Central Bank report that showed banks only bid to borrow 75.2 billion euros at the current interest rate of 1 percent, this was much less than anticipated, after the ECB had loaned a record 442 billion euros in June. ECB Governing Council member Marko Kranjec said that the lower demand for euro's shows the system is liquid enough and that banks don't need as much support as previously thought, suggesting that the central bank's emergency liquidity measures may not be necessary for much longer.
Interbank Rates at 9.30am
GBP-EURO 1.095
GBP-USD 1.597
GBP-AUD 1.813
Data out today
UK Halifax House Price Index
UK CIPS Manuf. PMI
Germany Retail Sales
EURO Unemployment
US Initial Claims
US Personal income
US Personal spending
However we did see the pound briefly hit just over 1.10 against the euro and it is a encouraging sign that we did not break the 1.08 level
The US Dollar slipped against the euro and the pound after news of the U.S. economy is likely to slow down at the end of the year amid employment and credit worries.
A Midwestern manufacturing report came in weaker than expected. The 16-nation euro edged up to $1.4646 in late New York trading from $1.4568 late Tuesday, while the British pound rose to $1.6008 from $1.5941. The economy will grow at a pace of around 2.5 percent in the October-December quarter, according to projections made by analysts at Wells Fargo, IHS Global Insight and Moody's Economy.com. If accurate, that would mark a slowing from the projected growth of at least 3 percent that many economists think occurred in the just-ended third quarter.
The Euro did make slight gains following a European Central Bank report that showed banks only bid to borrow 75.2 billion euros at the current interest rate of 1 percent, this was much less than anticipated, after the ECB had loaned a record 442 billion euros in June. ECB Governing Council member Marko Kranjec said that the lower demand for euro's shows the system is liquid enough and that banks don't need as much support as previously thought, suggesting that the central bank's emergency liquidity measures may not be necessary for much longer.
Interbank Rates at 9.30am
GBP-EURO 1.095
GBP-USD 1.597
GBP-AUD 1.813
Data out today
UK Halifax House Price Index
UK CIPS Manuf. PMI
Germany Retail Sales
EURO Unemployment
US Initial Claims
US Personal income
US Personal spending