Angelina Jolie Apple Art Ashlee Simpson Ashley Greene Auto Cars Bank of America Barack Obama Beauty and Style Beauty-Style Bernanke Beyonce Brad Pitt Britney Spears Brittany Murphy Business Ideas Business News Car News Car Photos Car Reviews Car Videos Carmen Electra Casey Johnson Celebrity Celebrity Nails Cheryl Cole Chopper Lane Splitter Chris Rowe Christina Aguilera Christina Hendricks Cindy Crawford Clinton Clip Coming Soon Comment faire un Avion en papier Companies Credit Cards Dalene Kurtis Daniel Mica David Beckham Deborah Caprioglio DietFitness Drawing & Coloring Earthquake Economy Eirik Solheim Entertainment Facebook Facebook-Games Farmville Fastion Forex Funny Game Game Info Game News General Motors Gold Golden Globes Haiti Halle Berry Holly Madison Hot News Hot Women How To How to Make How To Read A Forex Chart HOW TOs Insurance International Investing Ipad Iphone Jennifer Hawkins Jennifer Hudson Jessica Simpson Jobs Joe Weisenthal Kat Dennings Kate Moss Kate Winslet Katie Price Katy Perry Keeley Hazell Kelly Brook Kelly Clarkson Kim Kardashian KT Tunstall Laetitia Casta Leah Marville Leona Lewis Leonardo DiCaprio lesbian Lesbian-Questions Lily Allen Lindsay Lohan Liz Pulliam Weston Loan Centre Louis Navellier Lynda Carter Make Money Mariah Carey Marisa Miller Mayim Bialik Megan Fox Michael Jackson Michelle Obama Miley Cyrus Miss World Molly Sims Movie Info Movies Mutual Funds Nail Art Tutorial Nail Samples Nails News Nicolas Cage Nicole Polizzi Nicole Richie Oirigami Useful Origami Origami Airplane Origami Animal Origami Animal Easy Origami Animal's Face Origami Boat Origami Box Origami Flowers Origami Useful Osama Bin Laden Pamela Anderson Paper Airplane Paula Sladewski Personal Finance Pete Wentz Play Game Online Police Porsche Quotes about Life Rachel Zoe Real Estate Rihanna Sara Barelles Sexual Health Shakira Shannon Elizabeth Shocking Sienna Miller Star Stocks Strange Story Stupid Celebries Susan Boyle Taiwan Tamil Tiger Teens Tila Tequila Today's Big story Top Game Top Video Trading Trailers Travel Twilight Victoria Beckham Video Women Women-Family Women-Health Women'sHeath

Sterling hits five-month lows

9:47 AM
By Michael Hunter

The outlook for global monetary policy shaped action on the foreign exchange markets on Monday, with sterling the main casualty.

A report from the Centre for Economics and Business Research predicted that UK interest rates would remain at their historic low of 0.5 per cent through 2010. The report also forecast they would stay below 2 per cent until 2014.

That would be likely to leave sterling the lowest-yielding major currency at a time when interest rates outside the UK look set to start rising.

The consultancy group even forecast that sterling could fall to as low as $1.40 against the dollar and slip below parity against the euro.

Traders continued to speculate that the Bank of England might increase the value of itsquantitative easing (QE) policy beyond the current £175bn, in stark contrast to the prospect of similar special stimulus measures being wound down in other economies.

“The divergence in what other central banks are saying and what the Bank says has continued,” said Divyang Shah at IFR Markets. “The market remains of the view that further QE could be announced in November.”

The pound hit a five-month low against a trade-weighted basket of leading currencies, losing 1.2 per cent to 77.1. It also hit a five-month low against the dollar of $1.5729, and a six-month trough versus the euro at £0.9383.

The single currency found support from a clearer outlook for monetary policy in the eurozone.

The dollar, meanwhile, spent much of the session trading above Y90 for the first time in a month. It later fell back to Y89.70, unchanged on the day, undermined by a return of risk appetite in equity and commodities markets.

Comments over the weekend from James Bullard, president of the St Louis Federal Reserve, that the US economy faced risks from rising inflation, further stoked speculation that US interest rates might rise sooner than had been expected.

Commodity currencies made progress in line with stronger prices for oil and metals. The Canadian dollar gained 1 per cent against its US counterpart to C$1.0329. while the Australian dollar rallied a further 0.4 per cent to $0.9077.

The Aussie leapt 4.7 per cent last week after the Reserve Bank of Australia became the first central bank to lift rates in the current cycle.

“The Aussie’s rally above here may be predicated on a pause in its recent advance, possibly caused by investors banking some gains. The catalyst for further gains once again could be built upon a ‘buy-the-dip’ mentality,” said Andrew Wilkinson, senior market analyst at Interactive Brokers.

Post a Comment


Author Name

Xin chào mọi người

Contact Form


Email *

Message *

Powered by Blogger.