Posts Tagged ‘currency news’

British pound registered a major rise

Friday, October 9th, 2009

Following the jump in Britain’s home cost, the British pound witnessed an intraday rise of 1.6050. The currency was not able to stabilize as the industrial production all at once fell in the month of August. From the preceding day, the GBP/USD remained the same. The Halifax home prize index rushed 1.6 percent after increasing 0.8 percent in the month of August to surpass the anticipations for the increase of 0.6 percent. While the annualized rate came down 7.4 percent during the three months through the month of September amid prediction of 7.8 percent downfall.

Simultaneously, according to a different report the production all of a sudden plunged 2.5 percent in the month of August after increasing 0.5 percent in the preceding month along with the annual rate of manufacturing dropping 11.3 percent from the preceding year, while the production came down 1.9 percent from the month of July.

With the economic viewpoint remaining in doubt, the slew of mixed data proposes the BoE will maintain a peaceful attitude for the policies of future as the policy makers maintaining the risk for the slow revival. And there are chances for the pound to stay down as the investors scale back anticipations for high rates of interest in the subsequent year.

The euro increased against to greenback continuously for the 3rd day and crossed back over twenty day moving average to reach at 1.4752. In the meantime the council member of ECB Erkki Liikanen said that the central bank will take back their emergency programs when the economic circumstances permits, while Miguel Fernandez Ordonez disagreed preventing the incentive too soon might affect the economic recovery as the chances of uncertainties are major.

In addition to this, Miguel anticipated slow paced revival and expects the price pressure to rise by the year end, but the council member had a peaceful attitude for the upcoming price rise as he anticipates price rise to stay reasonable for quite some time. The central bank is also probably to uphold their ongoing policy on Thursday in order to encourage a sustainable revival.

The American dollar destabilized after The Independent newspaper made a comment that Persian Gulf were in talks with China and Japan in order to move oil price to a bank of assets. This would comprise the Japanese yen and euro while the Australian dollar increased to 0.8885 with the Reserve Bank of Australia shocked the market with a 25bp rake hike at 3.25 percent.