Apart from the development tick by tick in Italy and the formation of the new government, today was a UK day. Worries about the impact of the Eurozone debt crisis on the shared currency compensated signs of fresh economic stimulus from the BoE, no wonder to be honest. The GBP fell against the USD after the BoE said the prospects for the UK economy had worsened and that inflation was likely to fall back sharply next year. It fell as much as -0.40% against the USD as it was predicted that the BoE would introduce more QE early next year. A further GBP 50bn of QE is expected next February, in addition to the existing GBP 275bn programme, which is intended to stimulate lending and i.e. boost the economy. But obviously the GBP strengthened against the EUR as the latter lost some of its early gains, with Italian government bond yields rising again and the gap between French and German bond yields widening. Surprisingly so far the GBP was still benefiting from haven inflows, with concerns over the Eurozone trumping a weaker outlook for the UK economy. The South pacific chaps, AUD and NZD lost around 0.34% and 0.19% amid a broader risk sell off in Asia and slower than expected Ausi wage growth in Q3 of the year.
Overall, we still witness a very shaky risk appetite in the midst of constant uncertainties and nothing to unfold that vicious spiral we got in?
London Close as of 16/11/2011 18:00
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| |Prev Close| Low| High| Last| % Change|
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|EUR-USD | 1.3543| 1.3429| 1.3557| 1.3521| -0.16|
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|USD-JPY | 77.03| 76.86| 77.15| 77.02| -0.01|
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|GBP-USD | 1.5837| 1.5738| 1.5845| 1.5773| -0.40|
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|USD-CHF | 0.9158| 0.9139| 0.9224| 0.9160| 0.02|
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|USD-CAD | 1.0217| 1.0194| 1.0288| 1.0202| -0.15|
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|AUD-USD | 1.0178| 1.0060| 1.0200| 1.0143| -0.34|
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|NZD-USD | 0.7703| 0.7626| 0.7729| 0.7688| -0.19|
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