weakening sterling
Discussion
Well this morning's analysis is:
said:
Sterling finally managed to put in a stronger performance yesterday following in line with expectation, but still a touch above target, inflation data.
However, the real focus was on a return to risk aversion as equity markets tumbled. Prime beneficiaries were, as always, jpy, chf and usd.
Overnight, the UK RICS House Price Index came in at a 15 year low, once again denting the sterling recovery and suggesting troubled times ahead in the housing market.
A heavy data and events calendar today. With the pound shaking again after the RICS index, employment data needs to hold up to prevent further pressure. EZ inflation data is expected to hold steady but it would appear this will not steer President Trichet away from his hawkish course.
In the States, a slight up tick in inflation is expected but reaction should be minimal while TIC data, although seen declining, being from November may well be seen as too out of date to be of great concern in the current environment.
Former Treasury Secretary Summers testifies in front of the Joint Economic Committee as they try to determine what can be done to avoid recession.
Tonight’s Beige Book takes on lesser significance following Fed Chairman Bernanke’s dovish statements last week.
However, the real focus was on a return to risk aversion as equity markets tumbled. Prime beneficiaries were, as always, jpy, chf and usd.
Overnight, the UK RICS House Price Index came in at a 15 year low, once again denting the sterling recovery and suggesting troubled times ahead in the housing market.
A heavy data and events calendar today. With the pound shaking again after the RICS index, employment data needs to hold up to prevent further pressure. EZ inflation data is expected to hold steady but it would appear this will not steer President Trichet away from his hawkish course.
In the States, a slight up tick in inflation is expected but reaction should be minimal while TIC data, although seen declining, being from November may well be seen as too out of date to be of great concern in the current environment.
Former Treasury Secretary Summers testifies in front of the Joint Economic Committee as they try to determine what can be done to avoid recession.
Tonight’s Beige Book takes on lesser significance following Fed Chairman Bernanke’s dovish statements last week.
paul0843 said:
what will it take for pound to strengthen?
A time machine back to 1997, knock Tony Blair on the head, Brown would never win the election on his own. And we wouldn't become a heavily indebted, high tax, economically imbalanced country, almost uniquely vulnerable to a sharp slowdown in the financial services sector. You might want to take a read of this thread I started a while back...
http://www.track-days.co.uk/gassing/topic.asp?h=0&...
Edited by Timmy33 on Wednesday 16th January 12:58
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