Weekly Currency Update GBP/USD - Week ending 13th August
Aug 17th 2010, 1:30 pm
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Weekly Currency Update GBP/USD - Week ending 13th August
As promised here’s a brief update on what’s been happening with the U.S Dollar over the last week.
The Federal Reserve kept rates on hold and announced that any mortgage-debt principal repayments would be recycled into Treasuries as the FOMC spurned the opportunity to start to reduce its overblown balance sheet and gradually withdraw quantitative easing. The effectiveness and prudence of further quantitative easing is far from certain but equity markets are starting to show the effects of weak housing, jobs and mortgage data, while questioning the sustainability of strong corporate earnings and needed more from the Fed to maintain upward momentum. Equity market indices fell back into negative territory for the year-to-date and with European sovereign debt concerns resurfacing, the following weeks may well set the tone for the remainder of the year. This week manufacturing and housing data will be watched closely with risk appetite looking increasingly vulnerable to bad news.
GBP/USD movement – High’s & Low’s of last week (9th August– 13th August)
High’s: 1.5995
Low's: 1.5566
A movement of 2.77%
Difference on £200,000
High: USD 319,900
Low: USD 311,320
Difference of: USD 8,580
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards
Mark Bodega
Director - HiFX
The Federal Reserve kept rates on hold and announced that any mortgage-debt principal repayments would be recycled into Treasuries as the FOMC spurned the opportunity to start to reduce its overblown balance sheet and gradually withdraw quantitative easing. The effectiveness and prudence of further quantitative easing is far from certain but equity markets are starting to show the effects of weak housing, jobs and mortgage data, while questioning the sustainability of strong corporate earnings and needed more from the Fed to maintain upward momentum. Equity market indices fell back into negative territory for the year-to-date and with European sovereign debt concerns resurfacing, the following weeks may well set the tone for the remainder of the year. This week manufacturing and housing data will be watched closely with risk appetite looking increasingly vulnerable to bad news.
GBP/USD movement – High’s & Low’s of last week (9th August– 13th August)
High’s: 1.5995
Low's: 1.5566
A movement of 2.77%
Difference on £200,000
High: USD 319,900
Low: USD 311,320
Difference of: USD 8,580
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards
Mark Bodega
Director - HiFX
