MAGAZINE

Device converter



Weather

 

Classified ads

Put an ad on this website

Recently added

articles > Economy/Politics events

Economy/Politics

Sterling at its highest in 14 months

By Pugnax fx
12/04/2012

Thursday 12th April 2012

 

GBP/EUR – GBP/USD

Sterling rose to its highest in 14 months against a trade-weighted basket of currencies on Wednesday, bolstered by improving UK data, while the pound held near a three-month high against the euro. Worries about the euro zone debt crisis took centre-stage as Spanish 10-year bond yields remained high, prompting investors to switch to the UK currency which is still considered relatively safe in comparison to the common currency. The pound was supported by data that showed British retail sales rose in March at their fastest pace so far this year. The British Retail Consortium said like-for-like retail sales rose by an annual 1.3 percent in value terms, easily beating expectations of a stagnant performance. Analysts are said sterling was also benefiting from safe haven-related flows from the Middle East and this was likely to help it against the euro.

Stocks were higher on Wednesday, but riskier assets have suffered in recent sessions as Spain's funding problems returned to the fore, adding to jitters about the health of the global economy after Friday's disappointing U.S. jobs report. Spain is on the verge of a nervous breakdown. The first years of the EMU crisis were characterized by the strong cross-border holdings of European Government Bonds (EGBs) by national banks. The fear of a contagion and a systemic crisis triggered by a potential sovereign default explained the denial of the solvency crisis in Greece and the painful acceptance and implementation of the PSI. Spain is not suffering from a "contagion-style" crisis. The recent hike in the Bond did not leave other non-core countries unscathed, but the Spanish under performance highlights the new nature of the crisis:

 

EURO/USD

Treasuries halted a slide from yesterday before Italy sells bonds, testing investor appetite for European securities and fueling demand for the relative safety of U.S. debt. Spanish 10-year yields surged to as high as 6 percent yesterday, approaching the levels that pushed Greece, Ireland and Portugal into bailouts. The U.S. plans to auction $13 billion of 30-year bonds today. The US Dollar Index, which tracks the greenback against its major rivals, is losing ground on Wednesday, trading below the 80.00 mark ahead of the Beige

Book due later on in the American session. Risk-on trade has been slowly gaining traction since the close on Wall St. on Tuesday, extending its momentum into today’s session amidst concerns circling the euro zone economic conditions, particularly Spain. 

 

Currencies Rates
Exchange Rates (Mid Prices)
GBP/USD 1.5932
GBP/EUR  1.2140  
EUR/USD   1.3122
GBP/CHF 1.4590
GBP/NZD 1.9390
GBP/AUD 1.5326
GBP/CAD 1.5936

                                                                                          These rates are for indication purpose only.

 

 

info@pugnaxfx.com                                                                                                                                                                                  

Tel:+44(0)2070436028                                                                                                                                                                                      

www.pugnax-fx.com                                                                                  

                                                                                         

COMMENTS:

31/03/2014 - smithg949 said :

Very nice! edffbeegdb

LEAVE A COMMENT

Comments are moderated. They are displayed after an administrator validation.

:

You can reload the captcha by clicking on it