Over the past 2 weeks, the British pound has soared more than 8 percent against the U.S. dollar. Like many countries around the world, the U.K. has succumbed to higher gas prices but unlike some other countries, the weakness of the British pound has exacerbated the rise in inflation. Hotter consumer prices helped to [...]

Posted in 2009 british pound forecast, Bank of England, British Pound, Forex Technicals, Mervyn King, forex blog, quantitative easing 3 Comments »

The Euro and British pound have come under severe selling pressure after the ECB and BoE cut interest rates by 50bp. Interest rates are now at historic lows for both central banks and even though the rate announcements were negative for both currencies, the Euro has sold off more aggressively than the British pound [...]

Posted in 2009 british pound forecast, 2009 eurusd forecasts, Bank of England, BoE rate cut, British Pound, ECB, Trichet, credit easing, ecb rate cut, eur/usd, euro, forex blog, quantitative easing 4 Comments »

The currency and equity markets are turning lower after a strong rally on Tuesday. In my Daily Currency Focus, I talked about the 3 reasons why the currency market rally was suspicious. None of the reasons for Tuesday’s jump delivered real solutions. The market only rallied because Bernanke delivered no surprises. President [...]

Posted in 2009 british pound forecast, Australian Dollar, British Pound, Forex Technicals, aud/usd, forex blog, usd/jpy 7 Comments »

The British pound hit a high of 1.4605 this morning after falling to a low of 1.4137 yesterday. Although we have a mild improvement in risk appetite that is helping to propel the GBP, CAD, AUD and NZD higher, 2 stories making the wires are responsible for the volatility in the British pound.
Story #1 [...]

Posted in 2009 british pound forecast, British Pound, G7 meeting, eur/gbp 6 Comments »

There has been a lot of volatility in the foreign exchange market this morning, driving currencies to historic levels:
GBP/USD - 23 Year Low
USD/JPY - 13 Year Low
NZD/USD - 6 Year Low
EUR/JPY - 6 Year Low
CAD/JPY - 13 Year Low
GBP/JPY - Record Low
NZD/JPY - 8 Year Low
The most significant moves have been in the British pound, [...]

Posted in 2009 british pound forecast, 2009 gbpusd forecast, Bank of England, British Pound, Canadian Dollar, Forex Technicals, GBPJPY, Swiss Franc, eur/usd, forex blog, swiss national bank 3 Comments »