Currency news - Sterling looks for relief

Sterling looks for relief - 21-11-08

The UK currency was unable to regain the 1.50 level against the dollar on Thursday and weakened to lows below 1.48. Sterling also weakened to lows beyond 0.8450 against the Euro as confidence remained extremely fragile.

There will still be strong expectations of a further Bank of England interest rate cut of at least 0.50% at the December meeting, especially with global central banks still looking to cut rates aggressively to alleviate the severe conditions. The strong downward trend in global rates and economic fears should provide some degree of relative protection to the UK currency.

Conditions within the financial sector will be watched very closely as the relative prospects across the major financial sectors will be an important determining factor exchange rates. Sterling will need firm evidence of stability in the banks to make significant headway. As global risks remained dominant, Sterling edged back towards 1.50 against the dollar on Friday.

Tim Clayton
Investica Ltd
E-mail: tim.clayton@investica.co.uk
+44 (0) 1452 781001

Full list of daily currency analysis

This analysis report is intended for distribution to ACM Advanced Currency Markets SA private, corporate customers and members. Information contained in this report is based on data obtained from sources considered to be reliable, however, no guarantees be made by ACM Advanced Currency Markets SA as to the accuracy, timeliness and completeness of the data. The opinions and forecasts contained herein are subject to change without notice and ACM Advanced Currency Markets SA accepts no liability for any losses, damages and/or expenses incurred arising from or in any way connected with the utilisation of all or part of this report. This report is meant for information purposes and is not intended to be and should not be construed as an offer or solicitation to buy, sell foreign exchange or indeed any other financial instruments. This report, or any part of it may not be reproduced or distributed without the prior consent of ACM Advanced Currency Markets SA.