B
BenjaminFX
New Member
Thursday 7th April 2011
The market is a buzz over this afternoon’s announcement on interest rates for both the UK and Euro zone, published at 12:00 and 12:45 respectively.
There is little expectation for the Bank of England’s Monetary Policy Committee to raise the cost of borrowing, keeping levels at 0.5 percent for the twenty fifth consecutive month.
Sterling experienced a sharp drop against the Euro and US Dollar at 09:00 yesterday on the back of poor Manufacturing and Industrial Production figures. This turned during the later part of the day as GBP clawed back to previous gains.
It now seems a certainty that the European Central Bank will increase the Euro zone interest rate level which has remained at 1 percent since May 2009.
Jean Claude Trichet, the President of the ECB, made public the central bank mandate to raise rates back in March.
This move will certainly be welcome news for some of the stronger members of the group of 17 countries, however, many of its flailing members have shown their concerns that this move will discourage consumer spending and place them in a deeper recession.
The ECB have been clear about their intent to tackle soaring inflation in the Euro zone; as it stands the level of inflation is over twice their target of 2 percent.
The majority of the traders believe that 25 base points will be added this afternoon, with a few outsiders resolute that this move will be waylaid given the events in Japan and the Middle East.
In my personal opinion the debt issues that surround crisis struck countries who have asked for bailouts from the International Monetary Fund, such as Greece, Ireland and as of last night Portugal, will halt any move to hike rate.
EUR/USD and EUR/GBP will certainly see tremendous volatility today as the Euro is anticipated to cover ground quickly against its main rivals following the ECB publication. Should a hike be set in place then we could expect trading levels to reach the early 1.13’s against Sterling and into the 1.43’s against the Greenback.
These highs will no doubt fall back over the course of April, only to be sustained in the short term if the ECB makes mention of plans to follow this possible rate movement with a round of follow-up increases throughout the year.
And finally..
Manchester United claimed victory against premiership rivals Chelsea with a very crucial away goal. The moment arrived 24 minutes into the first half when Wayne Rooney showed touch and technique to steer in Ryan Giggs' pass. Chelsea pilled the pressure with wave after wave of attacks as the blow of the final whistle drew closer only to crash into Uniteds’ brick wall defence.
Chelsea's protests at the final whistle at refs decision not to award them the penalty that in all fairness was due in the dying minutes of the game saw thousands of man u fans smirk at the thought that it might just be justice.
Foreign Exchange Rates Table
Currency Pairs Current Mid-Rates at 9.00am
GBP - EUR 1.1429
EUR - GPB 0.8749
GBP - USD 1.6324
EUR - USD 1.4282
GBP - AUD 1.5573
GBP - CAD 1.5692
GBP - NZD 2.1024
GBP - CHF 1.4982
GBP - HKD 12.6910
GBP - NOK 8.9950
GBP - SEK 10.3525
GBP - ZAR 10.91
GBP - THB 49.14
GBP - AED 5.9960
GBP - MAD 12.9181
GBP - ILS 5.6363
GBP - TRY 2.4759
GBP - JPY 139.22
These are indicative rates, not buy rates
The market is a buzz over this afternoon’s announcement on interest rates for both the UK and Euro zone, published at 12:00 and 12:45 respectively.
There is little expectation for the Bank of England’s Monetary Policy Committee to raise the cost of borrowing, keeping levels at 0.5 percent for the twenty fifth consecutive month.
Sterling experienced a sharp drop against the Euro and US Dollar at 09:00 yesterday on the back of poor Manufacturing and Industrial Production figures. This turned during the later part of the day as GBP clawed back to previous gains.
It now seems a certainty that the European Central Bank will increase the Euro zone interest rate level which has remained at 1 percent since May 2009.
Jean Claude Trichet, the President of the ECB, made public the central bank mandate to raise rates back in March.
This move will certainly be welcome news for some of the stronger members of the group of 17 countries, however, many of its flailing members have shown their concerns that this move will discourage consumer spending and place them in a deeper recession.
The ECB have been clear about their intent to tackle soaring inflation in the Euro zone; as it stands the level of inflation is over twice their target of 2 percent.
The majority of the traders believe that 25 base points will be added this afternoon, with a few outsiders resolute that this move will be waylaid given the events in Japan and the Middle East.
In my personal opinion the debt issues that surround crisis struck countries who have asked for bailouts from the International Monetary Fund, such as Greece, Ireland and as of last night Portugal, will halt any move to hike rate.
EUR/USD and EUR/GBP will certainly see tremendous volatility today as the Euro is anticipated to cover ground quickly against its main rivals following the ECB publication. Should a hike be set in place then we could expect trading levels to reach the early 1.13’s against Sterling and into the 1.43’s against the Greenback.
These highs will no doubt fall back over the course of April, only to be sustained in the short term if the ECB makes mention of plans to follow this possible rate movement with a round of follow-up increases throughout the year.
And finally..
Manchester United claimed victory against premiership rivals Chelsea with a very crucial away goal. The moment arrived 24 minutes into the first half when Wayne Rooney showed touch and technique to steer in Ryan Giggs' pass. Chelsea pilled the pressure with wave after wave of attacks as the blow of the final whistle drew closer only to crash into Uniteds’ brick wall defence.
Chelsea's protests at the final whistle at refs decision not to award them the penalty that in all fairness was due in the dying minutes of the game saw thousands of man u fans smirk at the thought that it might just be justice.
Foreign Exchange Rates Table
Currency Pairs Current Mid-Rates at 9.00am
GBP - EUR 1.1429
EUR - GPB 0.8749
GBP - USD 1.6324
EUR - USD 1.4282
GBP - AUD 1.5573
GBP - CAD 1.5692
GBP - NZD 2.1024
GBP - CHF 1.4982
GBP - HKD 12.6910
GBP - NOK 8.9950
GBP - SEK 10.3525
GBP - ZAR 10.91
GBP - THB 49.14
GBP - AED 5.9960
GBP - MAD 12.9181
GBP - ILS 5.6363
GBP - TRY 2.4759
GBP - JPY 139.22
These are indicative rates, not buy rates
