LONDON (ShareCast) - European government bonds made headway after buyers returned, their confidence boosted by comments from the President of the European Central Bank (ECB) Jean-Claude Trichet which suggested ECB policy-makers were not predisposed
join www.factsonloans.com free mailing list
towards more interest rate rises this year.
The ECB lifted its key lending rate by 25 basis points to 4.25% yesterday in a move that was heavily foreshadowed.
The yield on the benchmark 10-year bund fell 6 ticks to 4.5%.
In the UK, gilts tracked their European counterparts higher, with the yield on the 10-year gilt sliding 6 basis points to 4.97%.
The Bank of England is to make its decision on its key lending rate next week. Despite increasing levels of noise about the need to control inflation, recent economic data suggests the UK economy is in no fit state to digest a rate increase, and no change to the base rate is expected.
The US was closed today for a public holiday.
last sking of the winter at arapehoe basin, 4th of july
Friday, 4 July 2008
Wednesday, 18 April 2007
pound break through 2 dollar mark, uk interest rate will have to rise next month
Sterling leaps to 26-year high
LONDON (Reuters) - Sterling surged to its highest level in more than a quarter of a century above US$2.01 on Wednesday as strong pay numbers bolstered expectations that interest rates are set to rise further.
Average earnings in Britain rose by 4.6 percent in the three months to February, picking up at their fastest annual pace in nearly three years.
This, along with Tuesday's data showing UK inflation topped 3 percent, pushed interest rate futures to fully price in a hike in May and one more this year, which would make UK borrowing costs the highest in the Group of Seven rich countries.
"These inflation worries are becoming a little bit more sticky. In short, (this week's) data is bound to provide sterling with more support," said David Simmonds, head of FX strategy at Royal Bank of Scotland .
"Going forward, the market will need to get a much better handle on where is the top on UK rates. This is constantly being challenged for an upward revision."
The Bank of England's minutes from its April meeting showed policymakers voted 7-2 for steady interest rates, with the two dissenters voting for a hike from 5.25 percent.
By 2:40 p.m., the pound had risen as high as $2.0133, up 0.2 percent on the day, before erasing gains to $2.0067 as the dollar recovered ground.
Further resistance is seen at $2.0155, $2.0395 and $2.0608 -- last reached in June 1981.
"We expect a rise above $2.0150, towards $2.0390 as a first target, before $2.0700, seen as the main level, above the latter, an extension towards $2.12 might be expected," BNP Paribas said in a note to clients.
Sterling hit a two-week high of 67.53 pence per euro while the pound's trade-weighted index hit a 1-1/2 month peak.
BACK TO THE 80S
Sterling was last at these levels in 1981 when Ronald Reagan succeeded Jimmy Carter as the 40th U.S. President and Diana Spencer married Prince Charles in Britain.
From there, the pound started a descent towards near parity with the dollar, hit in the mid-80s as the UK economy suffered a downturn with high inflation and unemployment.
Chris Towner, director of UK-based currency advisory firm HiFX, says the pound's rise to $2 from around $1.7 in 2005 marked a 17.5 percent move against the dollar -- the same as value-added tax.
"UK businesses do not ignore a 17.5 percent VAT bill but without identifying their FX exposures and properly managing them this is exactly the risk businesses are taking," he said.
Sterling has been on a rising trend against the dollar since early 2006. The Bank of England has raised interest rates three times since August, giving the pound one of the most attractive yields among major currencies.
The rising yield has also lured central banks looking to shift their swelling foreign exchange reserves out of dollars. tell you friends about over web site www.factsonloans.com
"Central banks are aggressive diversifiers," said Steven Pearson, chief currency strategist at HBOS Treasury Services. "Sterling, the euro and the Australian dollar are popular given the balance of liquidity and yield consideration."
The pound also received a boost last week after a report that the Treasury will consult on allowing UK-based firms to repatriate their foreign profits tax-free into Britain.
A Treasury source has said any changes to Britain's foreign dividend tax regime would be revenue neutral.
"We have to be cautious as it can be long way off but it's another peg to hang the hat on," RBS's Simmonds said.
what this will mean, rich uk people rod stewart, elton john, sting will be much better of
madonna, prince, michael jackson will be negative on the dollar
LONDON (Reuters) - Sterling surged to its highest level in more than a quarter of a century above US$2.01 on Wednesday as strong pay numbers bolstered expectations that interest rates are set to rise further.
Average earnings in Britain rose by 4.6 percent in the three months to February, picking up at their fastest annual pace in nearly three years.
This, along with Tuesday's data showing UK inflation topped 3 percent, pushed interest rate futures to fully price in a hike in May and one more this year, which would make UK borrowing costs the highest in the Group of Seven rich countries.
"These inflation worries are becoming a little bit more sticky. In short, (this week's) data is bound to provide sterling with more support," said David Simmonds, head of FX strategy at Royal Bank of Scotland .
"Going forward, the market will need to get a much better handle on where is the top on UK rates. This is constantly being challenged for an upward revision."
The Bank of England's minutes from its April meeting showed policymakers voted 7-2 for steady interest rates, with the two dissenters voting for a hike from 5.25 percent.
By 2:40 p.m., the pound had risen as high as $2.0133, up 0.2 percent on the day, before erasing gains to $2.0067 as the dollar recovered ground.
Further resistance is seen at $2.0155, $2.0395 and $2.0608 -- last reached in June 1981.
"We expect a rise above $2.0150, towards $2.0390 as a first target, before $2.0700, seen as the main level, above the latter, an extension towards $2.12 might be expected," BNP Paribas said in a note to clients.
Sterling hit a two-week high of 67.53 pence per euro while the pound's trade-weighted index hit a 1-1/2 month peak.
BACK TO THE 80S
Sterling was last at these levels in 1981 when Ronald Reagan succeeded Jimmy Carter as the 40th U.S. President and Diana Spencer married Prince Charles in Britain.
From there, the pound started a descent towards near parity with the dollar, hit in the mid-80s as the UK economy suffered a downturn with high inflation and unemployment.
Chris Towner, director of UK-based currency advisory firm HiFX, says the pound's rise to $2 from around $1.7 in 2005 marked a 17.5 percent move against the dollar -- the same as value-added tax.
"UK businesses do not ignore a 17.5 percent VAT bill but without identifying their FX exposures and properly managing them this is exactly the risk businesses are taking," he said.
Sterling has been on a rising trend against the dollar since early 2006. The Bank of England has raised interest rates three times since August, giving the pound one of the most attractive yields among major currencies.
The rising yield has also lured central banks looking to shift their swelling foreign exchange reserves out of dollars. tell you friends about over web site www.factsonloans.com
"Central banks are aggressive diversifiers," said Steven Pearson, chief currency strategist at HBOS Treasury Services. "Sterling, the euro and the Australian dollar are popular given the balance of liquidity and yield consideration."
The pound also received a boost last week after a report that the Treasury will consult on allowing UK-based firms to repatriate their foreign profits tax-free into Britain.
A Treasury source has said any changes to Britain's foreign dividend tax regime would be revenue neutral.
"We have to be cautious as it can be long way off but it's another peg to hang the hat on," RBS's Simmonds said.
what this will mean, rich uk people rod stewart, elton john, sting will be much better of
madonna, prince, michael jackson will be negative on the dollar
Sunday, 8 April 2007
interest rate news april 8th 2007
here at www.factsonloans.com
having the right interest rate can save you fortune.
go to www.factsonloans.com
and check you credit card
loans
mortages
saving rates
infacts click on everything on the website www.factsonloans.com
then check what you are paying and move to the best deal
i worth check every month at www.factsonloans.com
sign up for free newsletter
having the right interest rate can save you fortune.
go to www.factsonloans.com
and check you credit card
loans
mortages
saving rates
infacts click on everything on the website www.factsonloans.com
then check what you are paying and move to the best deal
i worth check every month at www.factsonloans.com
sign up for free newsletter
Subscribe to:
Comments (Atom)
