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Dollar is king

It made gains across the board and Sterling was one of the biggest currencies that was hit.

Sterling took a dive after HSBC reported a huge loss on their figures and a request for funding from their shareholders was looked on dismally by the market. Sterling was also hit by extremely weak lending data for January.

The Euro actually traded most pairings in a tight range surprisingly ahead of their interest rate meeting later this weak where they are expected to cut rates. The weekend news had been relating to EU rejecting initial plans for bailing out Eastern Europe which couldn't have been much of a boost for sentiment in the Eurozone.

Overnight we have seen the Australian central bank leave rates unchanged on 3.25% they were expected to lower to 3%. Very little in the way of data today but we have got the Fed chairman speaking later this afternoon and also we have the ECB’S Trichet speaking at around 5.30 UK time.  The other rate decision that is due today is the rates in Canada are expected to drop to 0.5% from the current 1%.

Yesterday Sterling/Euro traded with a high of 1.1238 and a low of 1.1090currently trading at 1.1150, Sterling/Dollar traded with a high of 1.4280 and a low 1.3955 currently trading at 1.4125 and Euro/Dollar traded with a high of 1.2740 a low of 1.2545 and is currently trading at 1.2660.

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