US ($) Currency Thread 2

inspector_monkfish

09:41 21May09 GBP/USD: Consolidating S&P Revision-Fuelled Losses

[08:41 GBP/USD: Consolidating S&P Revision-Fuelled Losses] London, May 21.

Cable remains on the back-foot despite better-than-expected UK April ONS retail sales figures, courtesy of S&P"s UK outlook revision to negative from stable.

GBP/USD slumped two cents to an intra-day lows circa 1.5600 on the back of the S&P"s bombshell. Bids are reportedly attached to the figure, although one dealer opines that "it is going to go".

1.5677 was the traded high after the ONS revealed that UK retail sales rose by 0.9% last month. A 0.5% increase was forecast. 1.5813 was today"s early Europe top (pre-S&P news). 1.5817 was today"s Asian session six-month high.

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trading at 1.5590 now

kefrif

And down she goes. Dropped 2 cents in a matter of minutes. Why did it tank if the retail data that came in just was better than predicted? Is it the borrowing figures that have caused the drop, or "common" market jitters after the announcement of new numbers?

inspector_monkfish

09:44 21May09 GBP ECON: Information Overload...But Don't Forget DMO Auction

May 21, 2009

So close to a long weekend and yet so much to digest on the UK today. To sum up the events/data we have 1) S&P has cut the UK outlook to negative 2) retail sales using the new methodology were stronger than expected at 0.9% (vs 0.5% for market) 3) PSNB/PSNCR both came in slightly higher than expected for April 4) the BoE released their survey of major UK lenders showing lower corporate credit availability and higher consumer demand for mortgages although 5) CML says that UK mortgage lending by building societies was lower in April than March.

In sum the events/data have been gilt negative and this could potentially feed-through into a less than stellar auction today from the DMO despite the fact that the BoE reverse auction suggesting that players have been making room for the Mar-2014 issue today by selling the Sept-2014 stock to the BoE. The cheapening of gilts certainly will help those that had sold their holdings to the BoE but let's not forget that this is not your typically sized auction at 5bn.

inspector_monkfish

kefrif wrote: »

And down she goes. Dropped 2 cents in a matter of minutes. Why did it tank if the retail data that came in just was better than predicted? Is it the borrowing figures that have caused the drop, or "common" market jitters after the announcement of new numbers?

read back a couple of posts
it 'tanked' 5mins before Retail sales when S&P revised UK outlook to NEGATIVE

kefrif

inspector_monkfish wrote: »

read back a couple of posts
it 'tanked' 5mins before Retail sales when S&P revised UK outlook to NEGATIVE

Ah yes - I see that now. Well - we'll see where it ends up after the days trading. Hovering around 1.556 at the minute.

whatusername

It's starting to climb again, currently above 1.56.

TMS increased their rate at 10.01 today then dropped it 1.5 cent within 5 minutes.

katies_mum

Going on holiday on Saturday, and have been quoted $40 to keep our room until 6pm which is ok with us, not sure whether to get some $ today or to pay with Nationwide card, or our debit card or even £`s. We are going to Sharm.
I also have £80 on Thomas Cook Credit Card, not sure whether to use some of this or keep it toward holiday next year.. any advice would be great. (going AI so don`t need to take megga amounts of cash). Tesco rates are very slightly higher than TC but don`t think there is much in it when you are talking about small amounts of cash.

Thanks

whatusername

katies_mum wrote: »

Going on holiday on Saturday, and have been quoted $40 to keep our room until 6pm which is ok with us, not sure whether to get some $ today or to pay with Nationwide card, or our debit card or even £`s. We are going to Sharm.
I also have £80 on Thomas Cook Credit Card, not sure whether to use some of this or keep it toward holiday next year.. any advice would be great. (going AI so don`t need to take megga amounts of cash). Tesco rates are very slightly higher than TC but don`t think there is much in it when you are talking about small amounts of cash.

Thanks

Really when you are taking small amounts it's hardly worth worrying who you use however every saving is exactly that - a saving.

Enjoy your holiday :beer:

katies_mum

Thanks for the reply, Tesco is 2 mins away, TC a bit further but we have £80 of travel pounds on our card..so in theory would cost us nothing if we use them.

Christa1

Can you tell me if TMS and Crown are reputable companies and if MSErs would recommned using this service? Looking aheda to Juky we could get over $1.50 which is probably as good as it's going to get in the short term?