Bank of England will leave interest rates at 0.5 percent until 2012

Published on in Foreign Exchange News by

Foreign Exchange Overnight/Morning Ranges:

Rates EUR/USD 1.4227-1.4368
Rates GBP/USD 1.592-1.5978
Rates GBP/EUR 1.1109-1.1200

The Bank of England will leave interest rates at a record low 0.5 percent for some months to come. Market expectations suggest that interest rates will now stay on hold well into 2012, raising the prospect that sterling could be used as a “funding currency” in the same way as the Japanese yen – i.e. borrowed cheaply to invest in higher yielding currencies. This could see sterling plummet over the coming months, so call in now to protect yourself.

A busy day yesterday saw the Euro sold after the expected rate hike by the ECB, Asian Central Banks then bought Euros at the lows of the day forcing the Euro higher. Comments from Trichet on the fact that the ECB will suspend its minimum credit rating threshold for Portugal after the downgrades this week also supported the Euro which looks range bound for the time being, $ 1.4200-1.4500 the levels to watch.

Although Sterling gave back its gains and as we opened lower, early EUR selling has seen us trade back towards yesterday’s highs against the Euro. The U.K. will need to see some positive economic data going forward, otherwise Sterling would become vulnerable again over the next few weeks. We open again below $ 1.6000 and above € 1.1150. U.S. non-farm payroll data is due today.

EUR/USD currently 1.4235. Support 1.4200, resistance 1.4500.

GBP/USD currently 1.5935. Support 1.5700, resistance 1.6000.

GBP/EUR currently 1.1191. Support 1.1100, resistance 1.1350.

Rates GBP/AUD 1.4820
Rates GBP/CAD 1.5300
Rates GBP/ZAR 10.67
Rates GBP/NZD 1.9170
Rates GBP/PLN 4.3900
Rates GBP/CHF 1.3520
Rates GBP/CZK 26.90

Oil $ 98.70 Gold $ 1531 Dow +0.74% FTSE +0.14% Nikkei +0.66%

Digg This  Reddit This  Stumble Now!  Buzz This  Vote on DZone  Share on Facebook  Bookmark this on Delicious  Kick It on DotNetKicks.com  Shout it  Share on LinkedIn  Bookmark this on Technorati  Post on Twitter  Google Buzz (aka. Google Reader)  

Recent Posts

» «

Comments are closed.

Live Currency Calculators

1 GBP = 1.13774 EUR

1 EUR = 0.8789 GBP

Change Currencies

Free Currency Calculators Mobile App

Best iTunes currency converter mobile app

Free iTunes Mobile AppiTunes currency calculator mobile app for free. Find live currency exchange rates for your iPhone or iPad.

Best Google Play currency converter mobile app

Free Google Play Mobile AppGoogle Play currency calculators mobile app for Android phone. Free on google play getting live interbank exchange rates.

© 2018 Currency Calculators : All Rights Reserved : Google Currency Calculators - Bing Currency Converter- Yahoo Currency Calculators