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Pound slumps after MPC David Miles UK Rate View & Times QE Increase Call
inspector_monkfish
Posts: 9,276 Forumite
08:31 01Jul10 IFR-EUR/GBP: Buoyed by Miles UK Rate View & Times QE Increase Call
[07:30 EUR/GBP: Buoyed by Miles UK Rate View & Times QE Increase Call]
LONDON,July 1 - EUR/GBP has just scaled a fresh intra-day peak of 0.8211 as the pound continues to suffer on the back of the view from BoE MPC member David Miles that "my own judgment is that we have not yet got to the point at which a tightening in monetary policy is the right thing to do" (Daily Mail). Coupled with recent comments from Adam Posen and Paul Fisher, it suggests that Andrew Sentance may be the lone MPC member voting for a Bank Rate hike for some months to come (Sentance last month cast the first vote for higher Bank Rate since August 2008).
The call for a resumption of the BoE"s QE Asset Purchase Programme in The Times is another GBP-negative. The GBP 200bn APP was "paused" in early February, after the last of the money was spent in late January. 0.8168-0.8187 was today"s Sydney session range.
Yesterday"s EUR/GBP rise to a two-day top of 0.8227 was fuelled by month/quarter/half-year end fix-related buying of the cross, inclusive of interest from a major EZ National Central Bank (0.8236 was Monday"s peak). The euro also benefitted from the news that the ECB lent banks a sub-forecast E131.9bn at 1.0% via its 3mth LTRO. The ECB was expected to loan E200-250bn. The slated 09:15/09:30GMT result of today"s ECB 6-day fine-tuning operation is of prime interest today
Moody"s yesterday revealed that it may cut its Spanish triple-A credit rating "by one, or at most two, notches" after a three-month review, saying "possible downgrade due to deteriorating economic growth prospects", the fiscal challenges facing the Spanish government and "concerns over rising funding costs". S&P and Fitch cut their Spanish credit ratings from triple-A during Q2.
June"s UK manufacturing sector PMI will be revealed at 08:28GMT. A fall to 57.5, from 58.0 in May, is forecast. A quarterly BoE Credit Conditions Survey will be published at 08:30GMT.
[07:30 EUR/GBP: Buoyed by Miles UK Rate View & Times QE Increase Call]
LONDON,July 1 - EUR/GBP has just scaled a fresh intra-day peak of 0.8211 as the pound continues to suffer on the back of the view from BoE MPC member David Miles that "my own judgment is that we have not yet got to the point at which a tightening in monetary policy is the right thing to do" (Daily Mail). Coupled with recent comments from Adam Posen and Paul Fisher, it suggests that Andrew Sentance may be the lone MPC member voting for a Bank Rate hike for some months to come (Sentance last month cast the first vote for higher Bank Rate since August 2008).
The call for a resumption of the BoE"s QE Asset Purchase Programme in The Times is another GBP-negative. The GBP 200bn APP was "paused" in early February, after the last of the money was spent in late January. 0.8168-0.8187 was today"s Sydney session range.
Yesterday"s EUR/GBP rise to a two-day top of 0.8227 was fuelled by month/quarter/half-year end fix-related buying of the cross, inclusive of interest from a major EZ National Central Bank (0.8236 was Monday"s peak). The euro also benefitted from the news that the ECB lent banks a sub-forecast E131.9bn at 1.0% via its 3mth LTRO. The ECB was expected to loan E200-250bn. The slated 09:15/09:30GMT result of today"s ECB 6-day fine-tuning operation is of prime interest today
Moody"s yesterday revealed that it may cut its Spanish triple-A credit rating "by one, or at most two, notches" after a three-month review, saying "possible downgrade due to deteriorating economic growth prospects", the fiscal challenges facing the Spanish government and "concerns over rising funding costs". S&P and Fitch cut their Spanish credit ratings from triple-A during Q2.
June"s UK manufacturing sector PMI will be revealed at 08:28GMT. A fall to 57.5, from 58.0 in May, is forecast. A quarterly BoE Credit Conditions Survey will be published at 08:30GMT.
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
(MSE Andrea says ok!)
0
Comments
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inspector_monkfish wrote: »The call for a resumption of the BoE"s QE Asset Purchase Programme in The Times is another GBP-negative. The GBP 200bn APP was "paused" in early February, after the last of the money was spent in late January. 0.8168-0.8187 was today"s Sydney session range.
:eek:
More QE?:eek:
In addition, not a good review for Spain, though the last 2 years highlights that whatever Moodys say can be taken with enough salt to cover UK roads in the winter...It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Anything can happen with that lot, they were still contemplating rises in Aug 2008 at the same time as commodity prices were crashing, we all know where they went soon after.
http://business.timesonline.co.uk/tol/business/economics/article4382650.ece'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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