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.