Tag Archives: GBP
GBP: Sound as a pound?
The UK is weak, but recent data do suggest it has turned a corner and will not double dip. Nonetheless, the recovery will be gradual and a £50bn extension of the asset purchase programme by the MPC is expected on Thursday.
Speculative Positions
Main conclusions Scaling back on net short EUR position and stretched Scandies SEB RAI and the Carry index moving higher and RAI is now closing in an the recent highs seen in mid Oct 2011.
Currency Strategy
Small and sound supersede size For the past two years, our long-term outlook has been focused on fundamentals as being the most important driver for currencies. The intensification of the euro crisis last summer made undervalued (fundamentally weak) currencies appreciate temporarily.
European Market Summary
The EUR was mostly firmer in European trade Tuesday, underpinned by solid German and Chinese economic data, but it struggled to make much headway against the dollar as the euro zone crisis continued to weigh on investor confidence.
GBP ANALYSIS
Closed in NY at $1.5430, off traded lows of $1.5376, opening into Asia at $1.5420 as it too was marked lower into the session along side EUR/USD (negative EUR comments in the weekend press). GBP was pressed to early lows in Asia of $1.5389 before recovering through the remained of the session, edging to a […]
Market Analysis
A combination of strong U.S. employment data and relentless fears about Europe’s debt troubles sent the EUR tumbling Friday to a new 15-month low against the USD and its weakest level in 11 years against the JPY. The common currency shed more than 2 cents on the week, reversing sharply from a relief rally that […]
Big G10 FX charts show Euro and Aussie at new opposite extremes
USD The USD/G10 basket has yet to extend beyond its recent tops as the pro-risk currencies have held their own against the greenback even as the Euro has suffered of late. The relative strength of the greenback in an environment of still elevated risk appetite is significant relative to previous behaviour.
GBP Analysis
Opened early Europe at $1.5599 stg0.8280 the rate having settled between $1.5590/1.5646 after marking lows at $1.5580. Despite the pullback GBP enjoyed an underlying buoyant tone, aided by EUR/GBP squeezing down to NY session lows of stg0.8264, with rate managing to hold for the most part above $1.5600 into the NY close.
Market Preview – 5 January 2012
Forex Overnight: EUR trading weak The EUR is trading under pressure against most of the major currencies, this morning, amid rising concerns about the ability of the European governments to refinance their public debt, and ahead of the €8.0 billion French bond auction later today.
GBP Analysis
Closed in NY at $1.5622, the rate having settled between $1.5590/1.5646 after marking lows at $1.5580. Despite the pullback GBP enjoyed an underlying buoyant tone, aided by EUR/GBP squeezing down to NY session lows of stg0.8264, with rate managing to hold for the most part above $1.5600 into the NY close.
GBP ANALYSIS
Opened early Europe at $1.5637 stg0.8335 GBP/USD closed in NY at $1.5650, off recovery highs at $1.5672, with rate marking highs into early Asia at $1.5651 before tracking EUR/USD corrective pullback.
Market Analysis
GBP – Gets some relief as UK construction PMi comes in stronger than forecast at 53.2, from Nov 52.3, with rate able to edge up from $1.5622 to $1.5632 on the initial react. Rate currently trades around $1.5627, holding off recently posted pullback lows of $1.5615.