Compare Money Transfer News - February 2011
Sterling falls to 3-week low versus euro; markets eye UK and US GDP
(February 25, 2011)GBP
Sterling saw a drop against a basket of currencies on Thursday, notably hitting a three-week low versus the euro as oil prices drove investors into safe haven currencies, increasing concerns over what we all know to be an already UK economy.
Although sterling remained supported by expectations that the Bank of England will raise interest rates [...]
Sterling makes gains after BoE minutes report hawkish sentiment
(February 24, 2011)GBP
Wednesday’s Bank of England minutes demonstrated a hawkish tone with 3 policymakers, reinforcing speculation that the bank will being monetary tightening policy by mid-year. Spencer Dale, the bank’s chief economist, joined Andrew Sentance and Martin Weale in voting for a rate rise this month.
The minutes also suggested that some of those opposed to a rate [...]
Euro rises on rate hike talk; markets await BoE minutes
(February 23, 2011)GBP
Sterling dropped against most of its traded counterparts on Tuesday as instability in North Africa and the Middle East triggered a wave of risk aversion action across the markets.
The pound has additionally been hit by the rising oil prices, which has seen investors limit their exposure to perceived risk currencies, as well as triggering profit [...]
Middle East troubles sees dollar dip versus sterling and euro
(February 18, 2011)Overview:
Dollar weakness against both the euro and sterling dominated market sentiment Thursday as overnight escalation of tension occurred in the Middle East due to political unrest in Bahrain and Yemen. As a result, fossil fuel commodities acted as a driver for dollar weakness. With the coming of afternoon came weak US consumer confidence data, [...]
Sterling weakens against dollar and euro as UK inflation data disappoints
(February 17, 2011)GBP
Sterling fell on Wednesday following the Bank of England’s downgrade of its economic growth forecast. Mervyn King admitted in a letter to the chancellor of the exchequer that there were ‘real differences of view’ among the MPC over how to tackle the double inflation that the UK is currency experiencing.
Jobless claims in the UK unexpectedly [...]
UK inflation runs at 4% – rate hike speculation continues ahead of BoE report
(February 16, 2011)GBP
Sterling rose against a basket of currencies Tuesday amid inflation data showing a two-year high, which fuelled even more speculation that the Bank of England will be forced to raise interest rates soon in order to restrict future price risks.
The prospect that the bank would abandon its ultra-loose monetary policy heightened after the UK consumer [...]
UK rate hike speculation increases as markets eye inflation data
(February 15, 2011)GBP
The pound held firm yesterday as interest rate hike speculation gathered pace on the expectation of today’s UK inflation data showing double the MPC’s target of 2%. With this in mind, the BoE inflation report on Wednesday is expected to raise near term inflation projections, adding to the case for interest rate hikes prior to [...]
Interest rates held but signals that higher yields are on their way evident
(February 11, 2011)GBP
Sterling recovered on Thursday after a session low versus the dollar after the Bank of England announced that it was keeping interest rates on hold at record lows of 0.5% despite some expectations of a hike. Some believe that high inflation will force policy tightening by mid-year.
Traders said speculators liquidated some long positions they had [...]
Investors eye today’s BoE rate decision
(February 10, 2011)GBP
Today’s BoE interest rate decision today will serve as the focus for investors. Rates are widely expected to remain at 0.5% so traders will look at the MPC rate statement which is more focused upon the future. However, rocketing inflation and a lack of growth in the UK economy does point to a slim chance [...]
Sterling slides against euro and dollar as Osborne increases bank levy
(February 9, 2011)GBP
Sterling made losses against all but one of its 16 most traded counterparts on Tuesday after George Osborne increased the tax levy on banks, triggering stop loss orders as investor sentiment took a hit.
This extra levy will raise 800 million pounds as Britain’s government tries to plug a record budget deficit. The pound ended the [...]