US ($) Currency Thread 2

inspector_monkfish

10:30 05Jan10 Cable holds its downwards course

10:30 GMT - [CABLE] still under heavy pressure with a US investment name and a
Swiss bank the more recent and persistent offers. Eur/Gbp also bought for
stops to trade 0.9000 and this offsetting a US prime name buyer of Cable.
Other cross flows have featured real money selling of Gbp/Aud and US/Swiss
selling of Gbp/Yen. Almost a one way street and a notable feature of
trade that stops have been easy to come by on Gbp's downside. Now 1.6030,
there is no strong support eyed in Cable ahead of 1.5832, testament to the
big whipsaw of trade over the course of the last week of trade. Sub
1.6000 should work as a negative, purely in terms of the big fig shift.
Potential for option related bids in the first instance.

inspector_monkfish

1.5985 trading

inspector_monkfish

Reason for Cable collapse this afternoon.......



16:32 05Jan10 UK AT 80% RISK OF RATING DOWNGRADE ON CURRENT DEBT PLAN:PIMCO
16:32 05Jan10 UK GILT YIELDS MAY RISE 100BPS ON END OF BOE BOND BUYS: PIMCO
16:32 05Jan10 UK GOVT DOESN'T HAVE CREDIBLE DEBT REDUCTION PLAN: PIMCO
16:32 05Jan10 CLOSE UK ELECTION COULD UP PRESSURE ON GILT YIELDS: PIMCO
16:32 05Jan10 UK At 80% Risk Of Rating Downgrade On Current Debt Plan:PIMCO

UK At 80% Risk Of Rating Downgrade On Current Debt Plan:PIMCO


LONDON--The U.K. government faces an 80% chance of a credit
rating downgrade if its deficit reduction plans remain as they are, Scott Mather, Pacific Investment Management Co.'s head of global portfolio management told Dow Jones Newswires Tuesday.

Mather also said yields on U.K. government bonds - known as gilts - could
rise by as much as 100 basis points when the Bank of England's bond-buying
program ends,

Asked if the U.K. faced a serious risk of suffering a downgrade to its credit
rating, Mather said "I think so."

"It's just a question of when on the current trajectory, not if," Mather
said. "Based on what we know today about the debt trajectory and about the
inability to adjust that, I think it's greater than a 50% likelihood for sure.
Call it more like 80%."

Mather said the government's debt reduction plan "is lacking in conviction
and it is lacking in details."

He also said the end of the Bank of England's bond-buying program will have a significant impact on U.K. gilt markets and borrowing costs.

"Common sense would tell you that if you had a buyer in the market place
which was taking the majority of the sector repeatedly... and then they
disappeared, ...you would expect a reprising, and it could be quite significant,"
he said in a telephone interview.

"The estimates vary. They're really all over the map, but it could be 50
basis points, it could be 100 basis points, in that range."

PIMCO runs the Total Return fund--the world's biggest bond fund.

pollypenny

Sorry about break-up,Neil.

20 degrees below normal in Florida. Had to buy some warmer clothes and the linens are unworn!

neilbond007

inspector_monkfish wrote: »

-14c ?? such a wooss !!
-30 in lapland the other week, and i only had my string vest on :eek:


i'll watch out 4 u on motd...

Only a string vest... now there's a sight for sore eyes...

mattybully

Im off to new york on the 29th Jan for 4 days. Whens the best time to get my currency? Now or closer to the time? Also best place to buy from?

inspector_monkfish

mattybully wrote: »

Im off to new york on the 29th Jan for 4 days. Whens the best time to get my currency? Now or closer to the time? Also best place to buy from?

best day wud be mon 25th jan, and best place wud be a place that sells currencies.

seriously though, too tricky to predict, wish i had a crystall ball - best to just go with a rate you are happy with. If you can get anywhere near 1.60 at the moment, i'd take it!

good luck

markets currently only at 1.5995

inspector_monkfish

down to 1.5930 now

Bank of England meeting today

inspector_monkfish

1.5895 trading

inspector_monkfish

back over 1.60 now

1.6005 trading