PhilBen
11th December 2009, 08:07
The Pound BOE’s rate decision of keeping things on hold left sterling range bound yesterday. The Monetary Policy Committee offered little surprise in its decision to hold the benchmark lending rate at 0.50 % and the deposit rate was also held, however this was despite the recent warnings that near-term inflation could rise above 3.0 %. There is very little doubt that the BOE or government would consider that inflation is a more pressing issue for the UK when the economy has yet to come out of recession. Also the group expanded the quantitative easing program by a smaller than expected amount of 25 billion pounds.
The Dollar According to Bloomberg Sales at U.S. retailers probably rose in November for the third time in the past four months, a sign that consumers are joining the emerging recovery, economists said before a government report today. Purchases climbed 0.6 percent after a 1.4 percent October gain, according to the median estimate of 79 economists surveyed by Bloomberg News. Other reports may show sentiment climbed this month and import prices increased in November. The Dollar is enjoying strength against GBP and the Euro as investors return to the Dollar.
The Euro holds firm against the Dollar after dropping the last few days because of worries about government finances in Greece and Spain. Greece's government has claimed they will do everything they can to reduce the deficit after a ratings agency downgraded the country's debt rating. However European Union officials meeting the panel appeared reluctant to offer any help. Also this week, Standard & Poor's has lowered its credit rating outlook on Spain to negative.
Data released 11th December
UK Input Prices (unadj)
UK Output Prices (unadj)
UK Output Prices Core (unadj)
US Import prices
US Retail Sales
US Retail Sales Ex Autos
CA House Price Index
US Univ of Mich Sent. (P)
Live IB Rates 8.50 am
GBP-EURO 1.106
GBP-USD 1.632
GBP-AUD 1.780
The Dollar According to Bloomberg Sales at U.S. retailers probably rose in November for the third time in the past four months, a sign that consumers are joining the emerging recovery, economists said before a government report today. Purchases climbed 0.6 percent after a 1.4 percent October gain, according to the median estimate of 79 economists surveyed by Bloomberg News. Other reports may show sentiment climbed this month and import prices increased in November. The Dollar is enjoying strength against GBP and the Euro as investors return to the Dollar.
The Euro holds firm against the Dollar after dropping the last few days because of worries about government finances in Greece and Spain. Greece's government has claimed they will do everything they can to reduce the deficit after a ratings agency downgraded the country's debt rating. However European Union officials meeting the panel appeared reluctant to offer any help. Also this week, Standard & Poor's has lowered its credit rating outlook on Spain to negative.
Data released 11th December
UK Input Prices (unadj)
UK Output Prices (unadj)
UK Output Prices Core (unadj)
US Import prices
US Retail Sales
US Retail Sales Ex Autos
CA House Price Index
US Univ of Mich Sent. (P)
Live IB Rates 8.50 am
GBP-EURO 1.106
GBP-USD 1.632
GBP-AUD 1.780