Sterling staged modest gains against a basket of currencies in yesterday’s London trading session but only managed to trade within narrow ranges due to a lack of economic data.
In the absence of fresh figures for traders to scrutinise, Sterling was able to hold onto Tuesday’s bullish gains, which came as a result of the preliminary 3rd quarter GDP figures.
Sterling did however enjoy hefty gains versus the Australian Dollar after Australian CPI figures came in below forecasts. Many in the market felt the AUD has been overbought in recent days leading …

Gains in the dollar have put a brief halt in a three-day run of gains in oil prices. Benchmark crude oil scheduled for December delivery currently (October 27) trades at $81.73 in early New York NYMEX trade.

The Pound rallied across the board yesterday after the preliminary 3rd quarter GDP figures showed the UK economy grew twice as much as initial forecasts.
Sterling came under heavy selling pressure on Monday falling to a near 7 month low versus the Euro on speculation that the 3rd quarter GDP estimate would produce a weak figure, thus increasing the likelihood of further quantitative easing measures from the Bank of England.
Growth was expected to fall back to 0.4% but the figures released yesterday morning estimated the UK economy grew by an impressive …

Looking back at last week, currency markets closed on Friday with a rather negative tone and price movement with Sterling was no exception. The recent budget report was supportive of a recovery of Sterling and its current cheap valuation should provide support to the currency, however currency markets suggest otherwise and the risks to the UK’s growth outlook may cause Sterlings recovery to be slow.
Bank of England Deputy Governor Paul Tucker said in an Interview today the British economy was not yet ready to cope with tighter monetary policy. …

The euro has been flirting with $1.40 the last two weeks and the currency appears poised to firmly capture and maintain that level Thursday (October 21) morning after economic reports from Europe and the US support a stronger euro-dollar.

A surprise interest rate hike of 0.25% in China provided some safe haven support for the dollar yesterday but gains were trimmed overnight as the impact started to wear off and markets turned wary of pushing the USD too far out of current ranges ahead of the early November FOMC meeting. A string of Fed officials speaking yesterday indicated that the central bank could unveil a second round of quantitative easing measures as early as next month. However, there was also evidence of some resistance to such a move, with …