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GBP/USD at highest since February

inspector_monkfish
Posts: 9,276 Forumite
08:14 14Oct10 - Stops Above 1.6000 Tripped, 8-Month Peak Scaled
LONDON, Oct 14 - Tripped buy stops helped propel cable to an 8-month high of 1.6050 following its break through 1.6000. Pre-1.6000 offers helped to keep a lid on sterling in Asia, when 1.5995 was the traded high, after the greenback took an across-the-board hit. That USD hit was influenced by the MAS move to widen and steepen the band within which the SGD can trade
(USD/SGD fell to an all-time low as a consequence). 1.5891 was today's early Asian session GBP/USD low. 1.5909 was yesterday's high (posted during the NY session).
The expectation that the Fed will unveil US "QE2" at the conclusion of its next meeting on November 3 is the major factor driving USD weakness. Fed chairman Ben Bernanke may give a heads-up on those QE measures via his slated speech entitled "Monetary Policy Objectives in a Low Inflation Environment" tomorrow (Friday).
GBP/USD bull targets beyond 1.6050 include 1.6070 (Feb 3 high), 1.6100, 1.6150, 1.6200, 1.6250 and 1.6275.
Currently trading right now at 1.6060
LONDON, Oct 14 - Tripped buy stops helped propel cable to an 8-month high of 1.6050 following its break through 1.6000. Pre-1.6000 offers helped to keep a lid on sterling in Asia, when 1.5995 was the traded high, after the greenback took an across-the-board hit. That USD hit was influenced by the MAS move to widen and steepen the band within which the SGD can trade
(USD/SGD fell to an all-time low as a consequence). 1.5891 was today's early Asian session GBP/USD low. 1.5909 was yesterday's high (posted during the NY session).
The expectation that the Fed will unveil US "QE2" at the conclusion of its next meeting on November 3 is the major factor driving USD weakness. Fed chairman Ben Bernanke may give a heads-up on those QE measures via his slated speech entitled "Monetary Policy Objectives in a Low Inflation Environment" tomorrow (Friday).
GBP/USD bull targets beyond 1.6050 include 1.6070 (Feb 3 high), 1.6100, 1.6150, 1.6200, 1.6250 and 1.6275.
Currently trading right now at 1.6060
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!)
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Comments
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More $ weakness that GBP strength - against other hard currencies (CAD, AUD, CHF) it's not looking too clever. QE2 is priced in for $, and is in the process of being priced in for GBP.0
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Yes, I think the headline should be USD at lowest since February'In nature, there are neither rewards nor punishments - there are Consequences.'0
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inspector_monkfish wrote: »08:14 14Oct10 - Stops Above 1.6000 Tripped, 8-Month Peak Scaled
LONDON, Oct 14 - Tripped buy stops helped propel cable to an 8-month high of 1.6050 following its break through 1.6000. Pre-1.6000 offers helped to keep a lid on sterling in Asia, when 1.5995 was the traded high, after the greenback took an across-the-board hit. That USD hit was influenced by the MAS move to widen and steepen the band within which the SGD can trade
(USD/SGD fell to an all-time low as a consequence). 1.5891 was today's early Asian session GBP/USD low. 1.5909 was yesterday's high (posted during the NY session).
The expectation that the Fed will unveil US "QE2" at the conclusion of its next meeting on November 3 is the major factor driving USD weakness. Fed chairman Ben Bernanke may give a heads-up on those QE measures via his slated speech entitled "Monetary Policy Objectives in a Low Inflation Environment" tomorrow (Friday).
GBP/USD bull targets beyond 1.6050 include 1.6070 (Feb 3 high), 1.6100, 1.6150, 1.6200, 1.6250 and 1.6275.
Currently trading right now at 1.6060
Dollar collapsing on the back of house repo enquiry.0 -
lemonjelly wrote: »Aren't we now down somewhere around 1.13 against the euro?
!!!!!! is happening there?
yah, 1.14 trading right nowPlease take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
des_cartes wrote: »Dollar collapsing on the back of house repo enquiry.
09:29 14Oct10 - FOREX-Dollar pummelled after Singapore widens FX band
* Singapore widens trading band for Singapore dollar
* Euro rises above $1.4100, highest in more than 8 months
* Aussie flirts with parity, dollar-index hits 2010 low
LONDON, Oct 14 - The U.S. dollar index hit the
year's low on Thursday while the Australian dollar flirted with
parity after Singapore widened its currency's trading band,
piling more pressure on to the struggling greenback.
The Australian dollar, which boasts the highest yield among
major currencies and with close links to Asian currencies,
soared to a 28-year peak at $0.9994 <AUD=D4> as investors
continued to dump the U.S. dollar on expectations the Federal
Reserve will start further money-printing next month.
The move by Singapore to widen the trading band of the
Singapore dollar, which hit a new record high, prompted a clean
break by the euro through $1.4000, triggering euro buy orders
and drawing model accounts into the fray.
With interest rates at record lows in developed markets,
yield-hungry investors are piling cash into emerging markets.
The tide of money is rising ahead of an anticipated second round
of quantitative easing by the Fed.
The dollar index <.DXY>, which tumbled 1 percent to its
weakest since December at 76.259, is on course for a test of
trendline support at 75.95, with its November low of 74.17 then
not far away. The 75.95 target is the trendline from two major
lows in July 2008 and in November 2009.
The euro, which surged above $1.4100 in early European
dealing, faces resistance at $1.4195 in its sights, the January
25 high.
With key levels having broken in most major currency pairs,
investors were focused on the Australian dollar's assault on
parity.
"The Aussie rally is being driven by strength in the
Australian economy together with supply and a general
depreciation of U.S. dollars. There are barriers at parity but
it's difficult to see the trend changing," said Lauren
Rosborough, senior currency strategist at Westpac in London.
The Aussie traded at $0.9978 with traders saying option
barriers at $1.0000 were slowing the rally. It has gained more
than 11 percent so far this year and is up around 24 percent
from a low in May.
The dollar also hit the latest in a succession of record
lows against the Swiss franc <CHF=> and slid below parity with
the Canadian dollar <CAD=>, a level not seen since April.
Commodities rallied as the dollar fell, with gold <XAU=>
hitting a record high and silver <XAG=> climbing to its priciest
in 30 years. [ID:nSGE69D045]
The euro <EUR=> jumped above $1.4100 on trading platform
EBS, its highest in more than eight months. After failing to
crack $1.40 the previous session, its move caught some players,
who had been expecting more consolidation, by surprise as it
triggered stops around $1.4030 and then $1.4050.
CATALYST
Momentum picked up after Singapore widened the trading band
for its currency and said it would maintain modest and gradual
appreciation in the Singapore dollar. The Monetary Authority of
Singapore sets policy by managing the Singapore dollar in a
secret trade-weighted band against a basket of currencies,
instead of setting interest rates. [ID:nSFK000030]
The U.S. dollar fell, touching a record low of S$1.2888.
"Singapore raised its currency more than expected. That has
opened the possibility of more strengthening in Asian
currencies, including China, ahead of the G20 meetings," said
Hideaki Inoue, forex manager at Mitsubishi Trust Bank.
The U.S. dollar fell 0.8 percent to a fresh 15-year low of
81.04 yen <JPY=>, despite constant wariness about Japanese
intervention, nearing its record low of 79.75 hit in April 1995.
While traders think Japan could intervene at any moment to
keep the yen in check, some market participants speculated that
Tokyo may prefer to avoid intervention ahead of G20 meetings.Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
Yes, I think the headline should be USD at lowest since February
very true purchy old chap - but whatever way you choose to view it, its still a high for GBP !!
The graphs don't liePlease take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
FT Alphaville -Dollar meltdowninspector_monkfish wrote: »very true purchy old chap - but whatever way you choose to view it, its still a high for GBP !!
The graphs don't lie"The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
FT Alphaville -Dollar meltdown
Sterling is still below its 25 year average ($1.65?) whereas the Aussie is at a record high (highest since it was allowed to float in the early eighties that is). The plummeting dollar just reinforces the devaluation of Sterling to me
we are only looking at last 8mths herePlease take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
TBH I'm happier earning Aussie dollars than Sterling, Euro or US Dollars right now, probably for the first time in my career.0
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