Currency Newswire » BOE

Could BoE and ECB Rate Decisions Surprise?

admin — Thu, 05 Feb 2009 18:29:16 +0000

Euro and pound were generally range bound in early European trade as the currency market awaited rate decisions from both the BoE and the ECB due 12:00 and 12:45 GMT respectively. With economic calendar essentially barren trading was likely to remain choppy as EUR/USD tried to hold on to the 1.2800 level while cable consolidated around 1.4400.

BoE Cuts But Pound Rallies

admin — Thu, 05 Feb 2009 18:29:16 +0000

As expected the BoE cut the overnight lending rate by 50 basis points to 1.00% – the lowest UK rate in the 300 year history of the central bank. BoE cited the risk of a substantial undershoot in the country’s inflation rate and noted that the series of rate cuts will eventually have a significant impact on the UK economy.

Main Focus on BoE and ECB Rate Decisions

admin — Thu, 05 Feb 2009 18:29:15 +0000

Yesterday was a choppy day in FX Market. EUR/USD fell sharply following weak PMI data and poor retail sales. Eastern European names were large sellers as the Rouble approached the bottom of the trading band. Later, the pressure intensified as Fitch downgraded Russia to BBB and kept them on negative watch. Sovereign bids kept the pair from falling through the 1.2800 level.
Early in …

British Pound Forecast ahead of BoE Rate Decision (Daily FX via Yahoo! Finance)

admin — Thu, 05 Feb 2009 00:23:59 +0000

This Thursday, the Monetary Policy Committee of the Bank of England is expected to cut rates by 50 bps to 1 percent. This will bring the overnight rate to the lowest level in the bank?s more than 300 years of history which could make the British pound very vulnerable going forward.

Impact of ECB and BoE Rate Decisions on EUR/GBP

admin — Thu, 05 Feb 2009 00:23:38 +0000

Over the next 24 hours, the Bank of England and the European Central Bank will be making interest rate announcements. The Bank of England is the only central bank expected to cut interest rates, but that does not mean that the Euro stay stationary. In fact, we expect some big action in both currencies, which could lead to more volatility for EUR/GBP.

British Pound Forecast ahead of BoE Rate Decision (Daily FX)

admin — Wed, 04 Feb 2009 16:48:31 +0000

This Thursday, the Monetary Policy Committee of the Bank of England is expected to cut rates by 50 bps to 1 percent. This will bring the overnight rate to the lowest level in the bank’s more than 300 years of history which could make the British pound very vulnerable going forward.

GBPJPY analysis – British Pound Dominates Against the Majors on Massive Retracement – Can This Continue?

admin — Sun, 01 Feb 2009 20:42:35 +0000

The British pound was the strongest of all the majors not only on Friday, but during the entire week, as the currency trades in a highly speculative manner. Indeed, over the past 5 days, the British pound has rallied 8.6 percent against the New Zealand dollar and roughly 6.3 percent against the euro and Japanese yen in an attempt to recoup the massive losses accumulated between October 2008 and January 2009.

However, with both Credit Suisse overnight index swaps and a Bloomberg News poll reflecting expectations that the Bank of England will cut rates by another 50 basis points at 7:00 ET on Thursday to a new record low of 1 percent., it’s worth wondering how far this British pound rally can extend.

There are few doubts that the BOE will at least consider slashing rates again since the UK remains in a deep recession and officials anticipate that things will only get worse. In fact, BOE Monetary Policy Committee Member David Blanchflower, who is easily the most outspoken and dovish member on the Committee, issued very dovish comments on January 29, saying that the UK economy may face a recession worse than that of the one in the 1980’s and that the Bank Rate needs to be cut “further and quickly.”

Furthermore, he said that the MPC has considered their options in the case that the Bank Rate is cut to zero, which was quite timely comment when you consider that Chancellor of the Exchequer Alistair Darling gave the BOE permission today to buy 50 billion pounds worth of bond and commercial paper in order to alleviate tight credit conditions. Overall, this leaves the odds in favor of year another rate cut by the BOE on February 5, but the reaction of the British pound may depend on what sort of bias is reflected in the Monetary Policy Committee’s subsequent statement.

source: http://www.dailyfx.com/

British Pound Outlook Hinges on BOE Rate Decision, Policy Statement (Daily FX via Yahoo! Finance)

admin — Sat, 31 Jan 2009 18:24:11 +0000

The British pound was the strongest of all the majors last week, as the currency trades in a highly speculative manner and attempts to recoup the massive losses accumulated between October 2008 and January 2009.