PhilBen
1st December 2009, 08:52
The Pound is still suffering from UK Banks involvement in Dubai, the uncertainty to how much money is involved and of course how much it could cost the tax payer. With investors now being even more cautious about investing in sterling, we could see more downside and this morning GBP remains well below 1.10 against the Euro and 1.65 on the Dollar. With Christmas fast approaching any upturn could be well into next year. That said in the new year the general elections could have a massive impact on how sterling will value and a small majority government could see investors pulling out of GBP completely as the UK will be seen to have a weak government.
The Dollar with slight gains against sterling yesterday and a drop against the Euro, the dollar is just could be reliant on any Dubai news that comes in. Investors could look for safe assets and return to the trusted dollar. If this is the case any GBP and Euro gains over the last few days could be wiped out.
The Euro estimate for November moved up 0.6% from a year ago, its first forward move in 7 months and beat economists’ expectations for a 0.4% rise after falling 0.1% the previous month. This data indicates that the gain was primarily led by rising energy costs and higher commodity prices and could continue to heighten price pressures across the Euro-zone as the economy recovers from its worst downturn since World War II. The ECB is expected to keep its current policy later this week as growth prospects remain poor. However the Euro is still keeping the Pound and Dollar under pressure.
The Australian Dollar Australia’s central bank has raised its benchmark interest rate by a quarter percentage point. This is the third straight month in a row and now points to the nation’s economy could be strengthening. Bank Governor Glenn Stevens increased the rate to 3.75 percent from 3.5 percent
Interbank Rates at 8.24 am UK Time
GBP-EURO 1.094
GBP-USD 1.647
GBP-AUD 1.795
Major Data out today
UK Nationwide house prices
Halifax House Prices (1st-4th)
DE Retail Sales
EU Unemployment
US Pending Home Sales
The Dollar with slight gains against sterling yesterday and a drop against the Euro, the dollar is just could be reliant on any Dubai news that comes in. Investors could look for safe assets and return to the trusted dollar. If this is the case any GBP and Euro gains over the last few days could be wiped out.
The Euro estimate for November moved up 0.6% from a year ago, its first forward move in 7 months and beat economists’ expectations for a 0.4% rise after falling 0.1% the previous month. This data indicates that the gain was primarily led by rising energy costs and higher commodity prices and could continue to heighten price pressures across the Euro-zone as the economy recovers from its worst downturn since World War II. The ECB is expected to keep its current policy later this week as growth prospects remain poor. However the Euro is still keeping the Pound and Dollar under pressure.
The Australian Dollar Australia’s central bank has raised its benchmark interest rate by a quarter percentage point. This is the third straight month in a row and now points to the nation’s economy could be strengthening. Bank Governor Glenn Stevens increased the rate to 3.75 percent from 3.5 percent
Interbank Rates at 8.24 am UK Time
GBP-EURO 1.094
GBP-USD 1.647
GBP-AUD 1.795
Major Data out today
UK Nationwide house prices
Halifax House Prices (1st-4th)
DE Retail Sales
EU Unemployment
US Pending Home Sales