GBP

Forex Trading News - Bank of England Rate Decision

Alex Chernomordin — Thu, 04 Sep 2008 07:00:42 -0400

The Bank of England, which was expected to keep rates unchanged, did just that keeping rates at 5%. The Cable which was trading below the 1.78 handle is relatively unchanged as the expectations of most were met. It will be critical to see how certain housing, credit and consumer confidence issues develop ahead of the next meeting, which should have some more uncertainty associated with it.

Forex UK Trading News - Former Bank of England Member Buiter on the Wire

Alex Chernomordin — Wed, 03 Sep 2008 05:34:33 -0400

Former Bank of England member Buiter had the following comments this session:

UK likely entered recession in the 1st half of 2008.
BOE may cut rates at some stage as economy slows.
Euro Zone inflation has topped out.
Said he sees ECB lowering rates in Q1 of 2009.

Forex News: GBP Nationwide Consumer Confidence Out at 52

Basil Fayad — Tue, 02 Sep 2008 19:01:37 -0400

Expected +49

Actual 52

Prior 51

Forex Trading - Sterling Continues to Weaken

Alex Chernomordin — Sun, 24 Aug 2008 22:48:08 -0400

The big mover on a light volume trading session to begin the week has been the Sterling. Sterling pairs are trading lower across the board, with the Cable hitting 2 year lows on an abrupt move lower. The Cable at the end of last week broke the 200 hour moving average twice, see the attached chart. The GBP/CHF pair is also approaching the full retracement of its recent August 14th lows, see the chart below.

Forex Trading News: GBP Falls to Session Lows Behind BOE Statement

Mr. Danish FX — Tue, 19 Aug 2008 02:01:08 -0400

As the USD is picking up momentum across the board, the GBP falls to session lows vs. it. The BOE's Besley just commented:

BOE BESLEY SAYS ITS NOT EASY TO KEEP INFLATION AT 2% TARGET
- Does not expect inflation to decline by the end of the year

- Reiterates warning on second round wage price inflation spiral

- Says need rates at "Suitable Level" until CPI threat is over

Forex Trading: All GBP pairs hit the skids.

Greg Michalowski — Wed, 13 Aug 2008 10:00:21 -0400

The UK Inflation report coupled with a weaker than expected Unemployment Report was the catalyst for the weakness in the GBP. Expectatons are that the UK need slower growth to lower inflation but inflation will first head toward 5.0% before coming down. The combination is not appealing to traders. As a result, we are seeing large liquidation type moves in GBPUSD, GBPJPY, GBPCHF and EURGBP as traders are exiting positions.

Forex Trading - Bank of England's King Speaks after Inflation Report

Alex Chernomordin — Wed, 13 Aug 2008 05:51:15 -0400

The Bank of England's King had the following comments after the release of the BOE's quarterly inflation report:

UK economy facing difficult, painful adjustment.
Inflation likely to peak at 5% in the coming months.
Growth will slow sharply in the near term.
BOE's growth forecast "markedly lower" than in May.
Near term CPI outlook has deteriorated, but CPI will return to 2% target.
Slowing growth is needed to contain inflation.

The Sterling has sold off significantly across the board, down over 150 pips against the USD and over 200 pips against JPY following the release of the report and King's comments.

Forex Trading News - UK Economic Releases (CLICK FOR MORE INFO)

Alex Chernomordin — Wed, 13 Aug 2008 04:32:14 -0400

The following UK economic releases were reported:

Actual Survey Prior

Claimant Count Rate (Jul) 2.7% 2.6% 2.6%

Jobless Claims Change (Jul) 20.1K 17K 15.5K

Avg. Earnings Income inc bonus YOY (Jun) 3.4% 3.6% 3.8%

Forex Trading - Retail Price Index (RPI)

Alex Chernomordin — Tue, 12 Aug 2008 04:37:35 -0400

The Retail Price Index for the UK came in higher than expected at 216.5 versus the 216.2 survey. The RPI month over month and year over year readings were as follows:

RPI -.1% vs. -.3% (mom)
RPI 5.0% vs. 4.9% (yoy)

With higher CPI data released as well, the Sterling initially rallied across the board and immediately gave back its gains, as it seems the markets are more concerned with slowing growth in the UK rather than inflation.

Forex Trading - DCLG UK House Prices - early release

Alex Chernomordin — Tue, 12 Aug 2008 04:31:03 -0400

The DCLG UK House Prices came out early and weaker than expected at .6% versus the 1.5% survey and 3.7% reading the prior month.