MPC swing voters not convinced of need for a rate cut
Pounds:
Another solid day for the pound yesterday on he
back of MPC Chief Economist Charlie Bean’s inflation comments.
He said upside risks were still prevalent and with him and Kate Barker
being swing voters it is fairly
unlikely that UK rates will be cut as long as they continue to hold this
view.
Yesterday CBI sales figures came in at their lowest level since November
2006 which saw a small pullback in
the afternoon session for the pound. The CBI said the sector with the
largest drop was clothing however this
could be attributed to the surprisingly warm weather this autumn.
This morning the pound is looking nice and firm trading above 2.08 on
cable and 1.44 on the euro. As usual
the pound has rallied over the emerging currencies on the back of a
stock sell-off.
Euros:
Again not a great deal to report from the Eurozone
today. The euro was slightly softer through the day yesterday probably
on the back of profit taking after a decent performance throughout the
week.
PMI numbers are the focus of the day today and are expected to be wholly
unchanged however Axel Weber the ECB resident hawk is due to speak
today.
General Euro Currency News:
• The Wall Street Journal
this morning carries an article suggesting that Gulf states are under
pressure from financial market positioning to depeg their currencies
from the dollar.
• BoJ’s Ota said she is looking now at downside economic data as a risk
to growth.
• Canadian employment data is due out this afternoon.
• Oil set new highs above $96 yesterday morning before retracing on the
back of the stock slide and growth concerns. It is now trading $93.63.
Interbank Euro to Pounds exchange
rates:
Updated 7th December 2007
G BRITISH POUND / US DOLLAR
2.0234
GB POUNDS TO EURO 1.4396
EURO / US DOLLAR 1.4641
GB POUND / JAPANESE YEN 225.32
GBP/AUD 2.3051
GBP/NZD 2.6012
GBP/ZAR 13.6014
GBP/CHF 2.2905
GBP/CAD 2.0446
GBP/SGD 2.9202
GBP/THB 61.8925
GBP/HKD 15.7687
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