Euro (€) Currency Thread

inspector_monkfish

King is talking, and doing his best to keep the rate from going through the roof:cool:

around 1.0835 at mom

inspector_monkfish

eyeing up 1.09

inspector_monkfish

11:27 24Mar09 EUROPE: More from King: no reason why Gbp should go any lower

11:27 GMT - Whilst the BoE's [KING] says the the fall in [GBP] is part of the
rebalancing of the UK economy, he suggests that it was not engineered, and
sees no reason why Gbp should go any lower. He relates Gbp weakness to
the earlier CPI rise, noting that the weakness of the Pound was bound to
have a significant impact on price level. It is right to accept that the
downturn will lead to higher deficits, says King, and Governments should
be cautious therefore on further fiscal stimulus. He notes that monetary
policy should bear the brunt of dealing with economic ups and downs.

inspector_monkfish

13:54 24Mar09 RTRS-ECB'S PAPADEMOS - QUANTITATIVE EASING BY CENTRAL BANKS IS AN OPTION WHICH COULD BE CONSIDERED IN CASE MORE TRADITIONAL MEANS HAVE BEEN UTILISED
13:55 24Mar09 ECB'S PAPADEMOS - SHOULD MAKE A DISTINCTION BETWEEN QUANTITATIVE EASING, CREDIT EASING
13:55 24Mar09 ECB'S PAPADEMOS - LIQUIDITY MEASURES AIMING AT IMPROVING FUNCTIONING OF CREDIT MARKETS COULD BE TAKEN IN PARALLEL WITH OTHER MEASURES

14:20 24Mar09 ECB's Papademos-quantitative easing depends on markets

BRUSSELS, March 24 - A central bank's decision on whether to pursue quantitative easing depends on conditions in financial markets, European Central Bank Vice-President Lucas Papademos said on Tuesday.
The ECB, unlike other major central banks, is not buying up assets to boost the economy further but has said it is keeping its options open.
"Quantitative easing is an option which could be considered in case the more traditional means for implementing monetary policy have been utilized," Papademos told a panel discussion when asked if quantitative easing was part of monetary policy.
"The conditions we may require to use these options would be related to the developments in financial markets."

dealsearcher

I am not surprised that the CPI is a bit higher. The very low pound must result in higher cost of imports. As the UK manufacturing base has been hammered so hard we are reliant more and more on imports.

The government is floundering. With very low interest rates and inflation above 3% things can only get worse. Savings are devaluing, companies can't have pay rises, people have less to spend and so the spiral continues.

inspector_monkfish

dealsearcher wrote: »

I am not surprised that the CPI is a bit higher. The very low pound must result in higher cost of imports. As the UK manufacturing base has been hammered so hard we are reliant more and more on imports.

The government is floundering. With very low interest rates and inflation above 3% things can only get worse. Savings are devaluing, companies can't have pay rises, people have less to spend and so the spiral continues.

:rotfl: cheer up !! :rotfl:

dealsearcher

We're doomed I tell you! Doomed! :EasterBun


Reverts to eating chocolate bunnies again. :rolleyes:

inspector_monkfish

Merv is a busy boy today.....


15:29 24Mar09 GBP/USD: Consolidating Gains, More BoE King Comments Looming

London,
March 24. Cable is currently trading just over a quarter-cent above yesterday"s
high of 1.4650, against a big-picture backdrop of gain consolidation from 1.3844.

The latter level was last Wednesday"s low, plumbed after dire UK unemployment
data. GBP/USD was trading at 1.3955 into last Wednesday"s 18:15GMT FOMC
statement. 1.4550 was today"s Asian session base.

1.4780 was today"s European morning six-week peak, scaled on the back of last
month"s unexpected rise in annualized UK CPI inflation to 3.2%, from 3.0% in
January. A fall to 2.6% was forecast. The 3.0%+ number forced BoE Governor Mervyn
King to write another "Dear Chancellor" letter (<TGM42333>). The BoE"s CPI target
level is 2.0%. 1.4640 marks the traded low since 1.4780.

King is slated to address a House of Lords Economic Affairs Committee Hearing
from 15:30GMT, along with BoE Deputy Governor Paul Tucker and BoE Chief Economist
Spencer Dale. Outgoing MPC member David Blanchflower is due to speak at Cardiff
University later.

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dealsearcher

So IM how is this £124 million bond purchase tomorrow going to effect the GBP/EUR? At present the markets appear to be looking at it favourably. Rate now at 1.088.


... and ticking up - now 1.089.

inspector_monkfish

dealsearcher wrote: »

So IM how is this £124 million bond purchase tomorrow going to effect the GBP/EUR? At present the markets appear to be looking at it favourably. Rate now at 1.088.


... and ticking up - now 1.089.

i don't think it has anything to do with that, its tiny really

market has moved mainly on the back of CPI and King's comments