Thursday 23 December 2010

GBPEUR/GBPUSD

Sterling deteriorated against the U.S Dollar during trading yesterday breaking key support level at 1.5550, trading down towards a low of 1.5375 on interbank. Sterling also deteriorated against a basket of major currency pairings following the news of a 0.1% downward revision to Q3 GDP growth in the UK.
The adjustment in itself was minimal, however at the same time it has increased concerns over the strength of the economic recovery and raised questions over whether the UK economy will be able to remain resilient in the face of fiscal tightening next year. Paul Fisher, a member of the Monetary Policy Committee (MPC) has been quoted to suggest that the UK could face a quarter of negative growth next year. In a statement yesterday evening Fisher also suggested that interest rates in the UK could reach a 'normalised position' of 5% in 2011.... read more

Friday 17 December 2010

GBPEUR/GBPUSD

The Pound rallied for the first time in three days against the Dollar and the Euro, after a government report showed that UK retail sales increased for a second successive month in November, while consumer price expectations also rose. Sterling bounced back from a low of 1.5550, a key area of support, to 1.5630 in London and the Pound also reached a high of 1.18 versus the Euro, up 0.6% on the day.
Sales climbed 0.3% from October, when they increased 0.7%, and the Pound stopped the rot, albeit temporarily, as the report gave an indication that the Bank of England will need to start thinking about higher interest rates to combat inflation. Sterling has lost 1.5% in the past week on concern that British banks face exposure to the European sovereign debt crisis and the economic recovery is losing momentum with house prices falling and unemployment up....read more

Monday 13 December 2010

GBPEUR/GBPUSD

Following from last week, the Pound remained lower against the U.S Dollar, trading back under $1.58, after the Bank of England decided to maintain emergency stimulus measures at the current level and keep interest rates at a record low of 0.5%. The UK currency actually declined against 13 out of the 16 most actively traded currencies, after a report showed that UK house prices continued to fall in November.
Although the UK economy has shown a somewhat remarkable resilience over the past quarter, the key components are beginning to slow. Manufacturing unexpectedly accelerated to the fastest pace in 16 years, while consumer confidence slipped to a 15 month low following the severe public spending cuts. The decision from the Bank of England was widely anticipated and should be fairly neutral for the Pound.... read more
Turkey, the economy continues growth


Increased production and investments continue to give their effect in the economy. The latest good news came from the Turkish Statistical Institute.
According to official figures the Turkish economy in the third quarter of the year grew by 5.5 percent.Gross National Income While this growth was realized in the figure of approximately 14 billion euros.
But growth for the 9-month period of the year amounted to 8.9 percent. State Minister and Deputy Prime Minister, Ali Babacan, in a statement made on the issue warned that these figures are the highest compared with European countries and the OECD, and added that at the end of the year will achieve a faster higher growth than projected medium-term program of government.

Thursday 18 November 2010

Pound trading close to an eight week high

GBPEUR/GBPUSD

The Pound is currently trading close to an eight week high against the struggling Euro, as speculation intensifies over the probability of a financial aid package for Ireland. Concern is spreading that the fallout from the Irish banking turmoil will spread to other nations in the Euro-zone, as shares in Royal Bank of Scotland Plc plummet to a four-month low.
Sterling recovered from the previous day's decline against the Euro, only the second decline in nine days, as EU and IMF officials prepare to meet and discuss the books of Irish banks tomorrow. The Pound has continued to lose ground against the U.S Dollar, falling to a low of $1.5857, despite reports that jobless claims in the UK unexpectedly fell in October..... read more

Tuesday 16 November 2010

Daily Insight - The Pound declined against the U.S Dollar for a second day

GBPEUR/GBPUSD
The Pound declined against the U.S Dollar for a second day, after a report from Rightmove Plc showed that UK home sellers slashed asking prices by the most since 2007 this month, amid a fundamental lack of demand. Average asking prices fell 3.2% from October, which represents the biggest monthly drop since December 2007.
Nevertheless, the Pound rallied against the Euro for the seventh day in eight, after Greece's budget deficit for 2009 was revised higher by the European Union. The Pound may continue to gain ground against the struggling Euro, as investors seek protection against a deepening European debt crisis and opt for the relative security of the British Pound.
Concerns have been raised about the accuracy of Greek data, which has undermined the credibility of EU budget rules, as members are expected to keep their deficits at less than 3% of gross domestic product. The Greek budget shortfall last year was revised to 15.4% of GDP, from 13.6% in the preliminary estimates.... read more

Monday 8 November 2010

Daily Insight - the Pound soared to the highest level since January against the U.S Dollar

GBPEUR/GBPUSD
Following on from last week, the Pound soared to the highest level since January against the U.S Dollar, rising to a high of $1.6270 in London, approaching the Fibonacci resistance level around $1.6340. The Bank of England declined to follow the Federal Reserve's lead and kept its emergency bond-purchasing program unchanged at £200 billion.
The nine member monetary policy committee, led by the governor Mervyn King, decided that additional stimulus wasn't required at this time, as the UK economy grew at twice the rate expected in third quarter. However, the GDP figures have been treated as one last hurrah before the real slowdown begins, as many of the key sectors in the economy continue to decline.
The decision from the Bank of England was widely anticipated but the Pound also gained ground against the majors, as a report from Halifax Plc showed that UK house prices rose by more than expected in September. The Pound was up 1.1% against the U.S Dollar, while the UK currency also bounced back above 1.15 versus the Euro, after house prices erased half of the record drop posted the previous month.
The government's austerity measures may hamper consumer spending over the coming months and send the economy into a second recession, which may prompt the BoE to extend bond purchases in the first quarter of 2011. The UK currency continued to make gains against the majority of the 16 most actively traded currencies, but continues to struggle against the so-called commodity currencies, as risk appetite remains an important factor.
Since the unexpectedly buoyant third quarter GDP numbers, the Pound has appreciated 2.5% against the Dollar and 1.6% versus the Japanese Yen. The resilience in the UK economy has been somewhat of a surprise to investors, who have trimmed bets that the Central Bank will increase quantitative easing measures at all from the current level.
According to analysts at CMC Markets, the Pound may climb to yet another nine-month high against the U.S Dollar. The Dollar is under renewed selling pressure, after the Federal Reserve announced that it will buy $600 billion of Treasuries through June 2011 in a bid to reduce unemployment and boost consumer price growth.
The Pound rallied to a high of $1.6298 against the U.S Dollar on Friday, while the UK currency also breached above 1.15 versus the Euro, amid speculation that the UK economic recovery remains on track and the Bank of England's decision not to engage in further quantitative easing. The Dollar actually bounced back towards $1.40 versus the Euro, after trading close to a nine month low.
The UK producer price data was stronger-than-expected, which provided a degree of support to the Pound on likely expectations that inflation could be very slow to fall. To that end, the Bank of England inflation report will be watched closely this week for any further evidence on the Bank's forecasts, as these may have an important influence on monetary policy expectations.
Underlying confidence in the UK currency has remained firm, contributed to by a lack of confidence in the Dollar and the Euro. The Pound retreated against the Dollar over the weekend, as the U.S currency advanced on risk sentiment.
The focus this week, aside from the BoE quarterly inflation report, will be September's industrial production report, which is expected to show sustained growth in the manufacturing sector. Elsewhere, the RICS house price survey will be watched closely for further confirmation of a slowdown in the housing sector, while the BRC retail sales report and consumer confidence survey should provide some insight into consumer spending.
EUR/USD
The U.S Dollar recorded another weekly decline against the majors, as gains in global stock markets and speculation that the worldwide economic recovery is gathering momentum reduced demand for the U.S currency as a haven. The greenback traded close to a nine month low against the Euro on Friday and the Pound before the Non-Farm payrolls report.
The Dollar traded at $1.4201 against the Euro, after trading at $1.4282, the weakest level since January 20th. The Dollar has lost 1.7% in value against the Euro this week alone. U.S payrolls rose by more than expected in October, climbing 151,000 after a revised drop of 41,000 the previous month. Private payrolls also gained more than forecast, while the unemployment rate held steady at 9.6%.
The Dollar strengthened against the majority of the 16 most actively traded currencies and Treasuries declined, as gains in average earnings added to the optimism that the improvement in labour market conditions will help boost consumer spending and get the recovery back on track. This U.S Dollar has been declining heavily against the Euro and the Pound and Friday's data may spark a bit of speculation that the greenback is becoming oversold at these levels and a correction may be forthcoming.

Sunday 7 November 2010


Almost 13 months after the 2009 parliamentary elections, which brought the Socialists to power, Greece holds elections for local government.
This time, the Greeks go to the polls in the moments when the country is going through profound economic crisis in its history, when unemployment is growing every day more and more, when hundreds of businesses are closed and when the people's discontent reached its peak after measures stringent anti-crisis that has taken the government, imposed by the IMF and the EU, Greece has given an aid package of 110 billion Euros.
 And had it not enough that, across the country was rocked this week by sending dozens of packages bomb left by terrorist elements, to foreign embassies in Athens, or even to some European leaders.

In recent days the political atmosphere has been very polarized. The dilemma that Prime Minister George Papandreou has put before the Greeks, if not support socialist candidates in local elections, the country will go to early elections, has become the "apple of evil" with conservatives who accuse the prime minister of the environment creates instability himself against Greece with his statements.
"It is a vote to place responsibility for the country and local governments. In such a case, if some try to hijack the country and citizens in the past, there is no other choice but to say their last word of the citizens, "said Papandreou.

However, local government elections are a test for the government, within one year of taking power, it's happened before challenges unprecedented in the history of the country in a crisis that is not only economic but also institutional, moral and social
For the first time in the history of country voting, but also have the right to be elected as members of municipal councils, and foreign immigrants, as a result.....

Total vote in these elections about 9.8 million Greeks, of which nearly 5 million are women. Candidates for mayor and county mayors must provide under the new law 50% plus one vote to be elected.

For the first time after many years, no national television has refused to give after seven o'clock when they closed boxes, exit polls for economic reasons.
Surveys 15 days ago and reflected the contradictory results showed fear, mistrust, uncertainty and skepticism of citizens.

Opposition by its characteristically declared that the election of the packages Greeks were afraid of the bombs of terrorists, but after holding them would prostrate the packages even more stringent measures to be undertaken economic government.

Saturday 6 November 2010

U.S. unemployment remains 9.6%


 

Barack Obama praised U.S. President today that the latest data on the extent of unemployment in the U.S. are encouraging, although there is much work to be was made to revive the labor market.
However, the U.S. unemployment rate still remains 9.6%, which means that about 14.8 million Americans are unemployed, cited Obama.

Athens to Brussels back in touch 347.5 million

 

Greece will be back in touch with the European Union 347.5 million extraordinary expenses of the Common Agriculture Policy.This is the first of 578.5 million euros that Athens was owed 19 countries, announced the European Commission.Brussels urges Athens back in touch with 210.9 million euros due to deficiencies in the cadastral system and poor control of expenditures in 2006 to aid in agriculture.For similar irregularities in the cadastre, Bucharest operator shall return the EU 41.7 million euros, while Lisbon 40.69 million.