Posts Tagged ‘ GBP ’

Pound falls to 5 week low ahead of BOE decision

Pound falls to 5 week low ahead of BOE decision.

Sterling weakened to a five-week low against the US Dollar on Thursday, before Bank of England Governor Mark Carney’s first policy decision.

The Pound also fell against all but one of its 16 major counterparts.

Meanwhile, the UK central bank is expected release a statement, a move that typically represents a change in policy.

However, according to a survey of Economists, the nine-member Monetary Policy Committee will keep its quantitative easing target and the benchmark interest rate unchanged.

Therefore, Senior Currency Strategist Paul Robson believes that the statement will break tradition, “We’re not expecting Sterling to react poorly to the fact that we get a statement. The data point to the economy growing, so it’s quite hard for them to justify anything too dovish at this point”.

The Pound fell 0.2% to $1.5249 this morning, after it dropped to $1.5130 yesterday, the lowest since May 30.

At the time of writing, £1 buys $1.525. If you wish to have a more detailed currency outlook or to find out how economic and political news could affect your currency transfers, speak to a deVere FX Manager today.

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Yen continues to weaken, how low can it go against $/£/€/AID this week ?

We start the week with the Yen maintained losses as G7 Finance Ministers will allow the yen continue to weaken . FTSE & US market futures looks to open higher .

The Yen hit 102.21 at 4:22am lowest since October 2008 , Nikkei up 177.48points +1.21% .G-7 policy makers said they examined Japan’s strategy
and they will monitor its impact on currencies. They reaffirmed their February
commitment to “not target exchange rates” at a meeting in Aylesbury, near
London, U.K. Chancellor of the Exchequer George Osborne told reporters .

How low ?

By the end of the week II can see it trading around :

 101/102 USD

156/158 GBP

132/134 EURO

101/102 AUD

 

Image

http://www.bloomberg.com/news/2013-05-12/yen-falls-beyond-102-as-g-7-tolerates-drop-s-p-futures-decline.html

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