Skip to content

Sterling rallied strong on Treasury news

The sterling was up 1.5% against the dollar to $1.7368.

The UK system was rightly regarded as amongst the most vulnerable globally, but ironically, is now one of the safest bet out there due to partial nationalization and meaningful guarantees for £250bn of bank debt.

The Dollar began the week on a positive note holding steady against the Euro and improving in exchange with the Yen. Investors pinned their hopes on the ability for policy makers to announce more detail in relation to "rescue" packages designed to restore some calm and stability in financial markets following the debacle that occurred in last week's massive sell off in global equities. With the Columbus Day holiday, the big dollar remained confined to a fairly wide range between 1.3480 and 1.3670 for the majority of Monday's trade.

The Euro was able to make small gains against the USD, although fell against the GBP and AUD. The stock recovery enabled large gains against the Yen, but the market was not as enthusiastic to change in direction as in other pairs. Overall the EUR/USD traded with a low of 1.3460 and a high of 1.3681 before closing the day at 1.3600 in the New York session.

Related