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Pound and Oil at seven-month high
IveSeenTheLight
Posts: 13,322 Forumite
from http://news.bbc.co.uk/1/hi/business/8076713.stm
Pound at seven-month dollar high
Pound vs dollar
The pound has risen to a seven-month high against the dollar, as the greenback continues recent falls. In early Monday trading, one pound was worth $1.6288, its strongest position since early November last year.
The euro was also up against the dollar, with one euro worth $1.4197, a five-month high.
The dollar has fallen on signs the global economy is improving. This makes currency traders more confident to switch to higher-yielding currencies.
This is the case for both the pound and the euro, as UK and eurozone interest rates remain higher than in the US.
While US interest rates are currently between 0% and 0.25%, UK rates are at 0.5%, and the eurozone level is 1%.
The latest upbeat global economic data has come from both the European Union and China.
Manufacturing output across both the eurozone and China was better than expected in May.
Pound at seven-month dollar high
Pound vs dollar
The pound has risen to a seven-month high against the dollar, as the greenback continues recent falls. In early Monday trading, one pound was worth $1.6288, its strongest position since early November last year.
The euro was also up against the dollar, with one euro worth $1.4197, a five-month high.
The dollar has fallen on signs the global economy is improving. This makes currency traders more confident to switch to higher-yielding currencies.
This is the case for both the pound and the euro, as UK and eurozone interest rates remain higher than in the US.
While US interest rates are currently between 0% and 0.25%, UK rates are at 0.5%, and the eurozone level is 1%.
The latest upbeat global economic data has come from both the European Union and China.
Manufacturing output across both the eurozone and China was better than expected in May.
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:
0
Comments
-
from http://news.bbc.co.uk/1/hi/business/8076705.stm
Oil prices reach seven month-high
Oil continued its rally in recent weeks, rising above $67 for the first time since November on sustained hopes for a global economic recovery. US light crude was trading $1.39 higher at $67.70 a barrel, while London Brent rose $1.53 to $67.05.
Gains in global stock markets and data showing modest growth in Chinese manufacturing appeared to be driving up prices in early trading.
Oil prices climbed 30% in May, the largest monthly gain since 1999.
But oil is still trading well below the record high of $147 a barrel seen last July.
Warning
But some analysts fear that the oil market may be moving ahead of reality, and warn that prices could fall.
"Most of the commodity markets, the base metals as well as oil, have moved to factor in economic recovery," said David Moore, commodity strategist at Commonwealth Bank of Australia.
"There is a risk that if economic data does not continue to support this view of the world that markets become disappointed with the pace of economic recovery, leading to price setbacks."
Last week, ministers from the Opec group of oil-producing countries said that they would keep output unchanged, with the Saudi oil minister Ali al-Naimi predicting prices will reach $75 this year.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Pound at seven-month dollar highOil prices reach seven month-high
One of those is good news.
I can't quite work out which one.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Woohoo, higher petrol prices. Great news
0 -
As long as the £ grows at near enough the same speed as oil prices there should not be any fuel increases.
I noticed Shell near me dropped diesel down to 99.9p this weekend from 101.9p
So as long as the £ stays strong (at a pace with oil) petrol prices should remain fairly static.0 -
As long as the £ grows at near enough the same speed as oil prices there should not be any fuel increases.
I noticed Shell near me dropped diesel down to 99.9p this weekend from 101.9p
So as long as the £ stays strong (at a pace with oil) petrol prices should remain fairly static.
Food, clothing, transport etc won't though.0 -
Graham_Devon wrote: »Food, clothing, transport etc won't though.
Your right any imports which are not rising get cheaper as the £ gets stronger..
So strong £ makes imports cheaper which we should see in our shopping baskets soon, more great news for the UK households cheers graham.
Looks like you tripped your self up there old bean:)0 -
One of those is good news.
I can't quite work out which one.
Personally, they are both good news for me.
The pound being stronger is a sign of a stronger economy
The oil price being higher is good for my job and other prospects as I work in the Oil industry.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Personally, they are both good news for me.
The pound being stronger is a sign of a stronger economy
The oil price being higher is good for my job and other prospects as I work in the Oil industry.
Drinks on you then, mine's a pint.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Your right any imports which are not rising get cheaper as the £ gets stronger..
So strong £ makes imports cheaper which we should see in our shopping baskets soon, more great news for the UK households cheers graham.
Looks like you tripped your self up there old bean:)
No I didnt.
As fuel goes up, it goes up throughout the world, dearest. Not just in the UK. Which means, we will be paying more for the import in the first place thanks to the rise in costs to keep crops growing.
Remember spring/summer 2008? Did our high exchange rate protect us from increasing rises? No.
Enjoy your trip 0 -
Graham_Devon wrote: »Remember spring/summer 2008? Did our high exchange rate protect us from increasing rises? No.
Enjoy your trip
There are more factorable costs than just oil graham in production. Most goods will fall and you know it as oil is only a % of the total COGS with wages etc falling a strong £ = cheaper imports so stop defending a mistake you made:).
As for the spring/sumer 2008 what are you on about our currency did not strengthen then?
pick your self up and try again.:D0
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