PhilBen
10th March 2010, 05:04
The Pound The UK's trade gap with the rest of the world widened in January to its largest since August 2008. Exports saw their biggest drop in over three years, according to the Office for National Statistics. The UK's trade gap in goods and services widened to £3.8bn, compared with £2.6bn in December. The news came as a disappointment and caused the pound to weaken, below 1.10 on the Euro and below 1.50 on the US Dollar. It was believed that sterling is so weak against most of the majors that UK exports would increase as other countries would take advantage of the cheap Pound. The brains of Briton failed to recognize one thing. We have to have a manufacturing base to have a large amount of exports. Shadow business secretary Ken Clarke said: "We need to build a new economic model based on saving, investment and exports instead of the debt-fuelled model of the last decade."
Meanwhile in an interview on Sky News yesterday Adam Posen said BOE officials are counting on their 200 billion-pound bond-purchase program to have succeeded in restoring the economy to growth. “ We believe growth will pick up from here,” Posen said. “It’s not going to go gangbusters. We had to go down from what we said before, but it’s still going to be strong. And in that case, there’s no need for more quantitative easing.”
A big day today for both the UK and the Euro-zone, we could see a lot of movement and possibly the Dollar will once again take advantage of both currencies.
Major Data out Today
AU Housing Finance
DE Current Account (nsa)
DE Trade Balance
DE Current Account (nsa)
DE Trade Balance
DE CPI (F)
DE HICP (F)
UK Industrial Production
UK NIESR GDP Est
JP GDP (F)
Live IB rates at 5.55am UK
GBP - EURO 1.1007
GBP - USD 1.497
GBP - AUD 1.635
EURO – USD 1.359
Meanwhile in an interview on Sky News yesterday Adam Posen said BOE officials are counting on their 200 billion-pound bond-purchase program to have succeeded in restoring the economy to growth. “ We believe growth will pick up from here,” Posen said. “It’s not going to go gangbusters. We had to go down from what we said before, but it’s still going to be strong. And in that case, there’s no need for more quantitative easing.”
A big day today for both the UK and the Euro-zone, we could see a lot of movement and possibly the Dollar will once again take advantage of both currencies.
Major Data out Today
AU Housing Finance
DE Current Account (nsa)
DE Trade Balance
DE Current Account (nsa)
DE Trade Balance
DE CPI (F)
DE HICP (F)
UK Industrial Production
UK NIESR GDP Est
JP GDP (F)
Live IB rates at 5.55am UK
GBP - EURO 1.1007
GBP - USD 1.497
GBP - AUD 1.635
EURO – USD 1.359