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Riskier Assets Fuel Dollar Sell-Off As Markets Turn To Gold

November 16th, 2009

Market Highlights

  • Inflation concerns hamper thoughts of recovery
  • ECB out of recession
  • Gold takes centre stage as dollar tumbles

Inflation concerns hamper thoughts of recovery

The pound had another dramatic week as the ever anticipated inflation report gave it a real slap in the face. The Bank of England members tried to give some hope to an already battered economy and perhaps raise a smile on the ever concerned consumer. Alas, it didn’t do anything but confirm this country as almost third world. Last week started off with a possible downgrading from Fitch and as if we didn’t know it we are most at risk for a cull from the major economies. Perhaps it’s the 800bln debt were carrying that brought them to this conclusion. Read Full Article »

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Positive G20 sees risk appetite on the up

November 9th, 2009

Market Highlights

  • Is the end in sight for quantitative easing?
  • Carry trade concerns keep dollar suppressed
  • All eyes on German fundamentals for Euro growth

Is the end in sight for quantitative easing?

As the markets rested yesterday, our countries leader continued in his seemly favourite past time of the moment; the slow demise of his reputation. Prime Minister Brown retreated from his proposal for a financial transaction tax, or ‘Tobin Tax’ after strong criticism from the U.S., ECB, Canada, Read Full Article »

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British Pound Assured Volatility as BoE is Forced into a Policy Decision

November 2nd, 2009

Market Highlights

  • Will the UK increase QE and decrease sterling demand
  • Will risk taking continue to prosper following bullish US GDP
  • Euro pullback may turn into reversal should dollar recover

Will the UK increase QE and decrease sterling demand

Last week saw the buyout of Standard Life by Barclays for 266m which started the week off with sterling being bought, this mildly countered the negative GDP Q3 release within the UK the week before. The markets have seen sterling continue to be on the back foot against most majors. With UK data thin on the ground last week, we saw heavy swings via fundamental releases from the Eurozone and America. The positive US GDP figure was the main driver on Thursday and caused sterling/dollar to trade up to 1.6570 as risk came Read Full Article »

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Bullish Sterling Fades As the Week Gone By Shows Economie’s True Colours

October 26th, 2009

Market Highlights

  • GDP Stampedes the Bulls into Submission
  • Trichet Sounds Battle Cry Against Strong Euro
  • Will GDP Take the Sting Out of the Ailing Dollar?

GDP Stampedes the Bulls into Submission

A more sombre tone towards the back end of the week helped end the high hopes from everyone on the recovery of sterling. Were we just hoping without the presence of any real backbone? The markets shocked us all last week by making significant moves of which nobody could really put there finger on why. It certainly wasn’t based around fundamentals and this is what stopped it in its tracks as the week came to an end. The Bank of England members did their bit to drive the market with some classic verbal intervention but conflicting Read Full Article »

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Traders nervous ahead of data heavy week!

September 28th, 2009

Market Highlights

  • Pound under further pressure?
  • Angela Merkel in – Stock markets out?
  • Significant test for the US stock markets ahead of ever important numbers this week

Pound under further pressure?

This week is going to be a significant test for the pound. Last week we touched a 5 month low against the EUR and USD mainly due to risk aversion. Risk aversion is again going to be coming in waves this week with a data-heavy few days ahead. As the pound is currently considered a risky asset, whenever bad news hits the stock markets or any higher risk products, unfortunately the pound suffers as traders sell it and buy into safe havens such as the USD and Yen. A report on the Financial Times this morning shows signs that Read Full Article »

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