Pound The pound slipped yesterday after UK mortgage and consumer credit data pointed to still lacklustre economic growth, with the pound vulnerable to further weakness as investors and speculators focussed on shaky UK fundamentals. The pound was down 0.8 percent at $1.6268 at 3pm yesterday before recovering to trade at around the 1.6300 handle. Bank of England consumer credit data showed individuals’ appetite for borrowing unexpectedly slowed in July while UK net mortgage lending remained subdued, rising by just 0.7 billion pounds. Although the data was largely in line with expectations and mortgage approvals inched up to 49,239, their highest level since May 2010, analysts said the numbers contributed to an overall gloomy picture of the economy and pressured sterling.
No major data due today.
Euro: The euro fell for a second day against the yen as economists forecast unemployment in the region last month remained unchanged at 9.9 percent, a level it hasn't fallen below since 2009, adding to signs the Europe’s economic recovery is faltering . The 17 nation currency maintained losses versus the dollar on speculation the European Central Bank will cut borrowing costs to support growth. There are expectations in the market for European rate cuts to bolster the economy. The euro traded at $1.4425 this morning in London from around the $1.4450 handle in New York. The shared currency advanced 0.2 percent against the greenback so far this month.
No major data due today.
Dollar: Federal Reserve policy makers debated ways to invigorate the recovery and hiring this month, poten-tially laying the groundwork for action at their next gathering in September. Minutes of their closed-door meeting released yesterday in Washington showed that a few members of the Federal Open Market Committee favoured a ‘more substantial move’ at the next meeting beyond the pledge adopted by the panel to hold rates at record lows for the next two years. Fed Officials this month discussed a range of tools, including buying government bonds and lengthening the average maturity in its portfolio, without coming to an agreement on what the might do should the economy weaken further. They will fully debate their options when they gather next month for a two-day meeting that was originally scheduled to the last day.
Data 13.15: ADP Non-Farm Employment Change.
General:
• The Swiss franc rose for the first time in three days versus the euro as Italian government securities fell in the wake of a bond auction, boosting demand for the relative safety of Switzerland’s currency.
For more information or to request a call back click here
GBP/USD 1.6300
GBP/EUR 1.1290
EUR/USD 1.4425
GBP/JPY 124.80
GBP/AUD 1.5275
GBP/NZD 1.9080
GBP/ZAR 11.4780
GBP/CHF 1.3260
GBP/CAD 1.5930
GBP/SGD 1.9610
GBP/THB 48.80
GBP/HKD 12.7080
red-down; blue-up (snap shot)
These rates are for indication purposes only.
For more information or to get the latest spot rates contact:
John Paul Georgiou
Senior Foreign Exchange Broker
+44 (0) 20 7959 6917
Website:
For more information