Forex markets accross the board were rather mixed after yesterdays close in London, with the Pound confined to tight ranges particularly as the Euro halted its 5 day rally against its counterparts.
Sterling fell to a low against the dollar of $1.4946 in the wake of the release of the UK final Q1 GDP data, which highlighted the fragility of the UK’s economic recovery. It bounced back only to fall again in later trading after S&P announced that it was maintaining its negative outlook on the UK’s AAA credit rating. This …

Forex markets are seeing considerable movement already this morning with Sterling currently being sold off against virtually all of its counterparts. Briefly looking at last week the British Pound held a narrow range as the Bank of England refrained from releasing a policy statement following its interest rate decision for July, and the exchange rate may continue to trend sideways over the coming week as investors weigh the prospects for future policy, and interest rate expectations.
Sterling’s rally against the dollar, Euro, Australian Dollar and Canadian Dollar has run out of …

While sterling hit a two month high to the dollar in yesterday’s early morning trading, it again failed to hold a break above the $1.52 level and saw renewed weakness against the generally stronger euro which continues to correct itself against a number of its counterparts. Although many analysts viewed this as simply a corrective pullback against the majors and positive risk sentiment, the Euro continues to retrace its losses with a test of 1.2700 (High) with the EUR/USD pair.
It is advised however that buyers proceed with caution, as the …

Interest rate decisions from the European Central Bank and the Bank of England headline the economic calendar. While any significant changes in the key elements of monetary policy are unlikely in both cases, the outcomes may still prove to stoke significant volatility around currency markets.
The BOE is expected to deliver the first policy announcement since the government unveiled an ambitious emergency budget that promised to slash the deficit by 6.3 percent of GDP by 2014-15. The central bank’s statement (or lack thereof) will be closely scrutinized for its take on …

It is a bit unusual, but gold prices are currently falling in line with US economic concerns, equity index drops, and dollar losses. Typically, gold is known as the “safe money” investment when there is economic uncertainty.

The Euro and British Pound are among the global currencies making great strides against the slumping US dollar. One Euro is currently worth $1.2554 after reaching as high as $1.2613 in earlier Friday (July 2) trade, while a British Pound is fetching an even $1.52 after peaking at $1.5234 earlier in the day.