Hi All,
The Pound
Sterling fell for the 13th day for the longest drop in over 37 years, according to Bloomberg, against both the
US Dollar and Euro exchange
rates, on an op-ed piece in the Sun newspaper by
Bank of England policy committee member Besley, who said inflation will fall by the end of next year, "adding to the case for interest-rate cuts."
The
Bank of England releases the minutes of the last policy meeting tomorrow.
It's interesting that Market News reports the Besley story entirely differently, noting that he said inflation management is the key to everything.
"Besley says beating inflation is the best basis to boost economic growth, helping create jobs and expand living standards and that letting inflation out of the bottle would be damaging and dangerous for the economy."
This sounds like the ECB policy stance and certainly doesn't suggest a case for rate cuts!
Market News further says that sterling came under strong selling pressure in early Europe on
"hedge fund sales, which extended the corrective pullback from recent recovery highs of $1.8715 to $1.8538.
"
Since hedge funds are highly likely to be
technical analysis - dominated, the Bloomberg idea of the Besley story as implying rate cuts is probably uninformed as well as wrong.
Be careful what you read.
Barbara Rockefeller
For the latest
Foreign Exchange News and
Forex Trading Program
visit Rockefeller Treasury Services
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