Skip to content

Volatile markets on Fannie and Freddie announcements

The city analysts waded through the package yesterday and the market swung to and fro as different opinions were aired on their take on what effect it would have. Sterling originally was boosted with cable trading higher than its highs of Friday but slumped after lower than expected PPI figures suggesting a slowdown in inflation may now spark calls for a rate cut.  

Euro had also improved against the dollar initially but the dollar came back with a vengeance in US trading. Oil prices coming down yesterday also helped the dollar as there were comments suggesting that Opec will not be cutting oil production. So far this morning we have seen German trade balance come in lower than predictions and at 9.30 UK time we have the UK ’S industrial orders and manufacturing due.

Also in the UK we have had a report from Nationwide stating that they thought the housing market in the UK had slumped by 25%. There are a few number due out of the US this afternoon with the pick being the pending home sales numbers.