Sterling remains under pressure but manages to advance against a weaker Dollar
The Pound gained no rest bite yesterday as more bad news on the financial sector and property market deepened economic gloom.
Firstly there was HBOS who confirmed that shareholders subscribed for a mere 8.3% of shares in its rights issue, leaving the underwriters with almost £3.8 billion of stock.
Then we had property website Rightmove who reported its first ever annual fall in house prices since it began keeping records six years ago; prices fell 2% year on year to July.
Following comments from John Gieve and David Blanchflower highlighted in yesterday's commentary dealers will be looking very closely at the minutes of July's MPC meeting on due out on Wednesday to gauge whether any other members of the committee are moving towards easing monetary policy soon, which would further weigh on sterling.
A Reuter's poll of economists predicts that the MPC will have voted 8-1 in favour of rates staying on hold.
The dollar initially gained from news that Bank of America reported stronger-than-expected quarterly earnings but sentiment remains cautious and the dollar fell back sharply as poor company earnings reports in after hours trading from American Express, Apple and Texas Instruments triggered fresh dollar selling.
Adding too the negativity surrounding the greenback was a report yesterday from the Conference Board that showed that the index of leading US indicators fell 0.1% in June. This was in line with expectations but of more concern to traders was May's figure which was revised down to minus 0.2% from plus 0.1%.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Firstly there was HBOS who confirmed that shareholders subscribed for a mere 8.3% of shares in its rights issue, leaving the underwriters with almost £3.8 billion of stock.
Then we had property website Rightmove who reported its first ever annual fall in house prices since it began keeping records six years ago; prices fell 2% year on year to July.
Following comments from John Gieve and David Blanchflower highlighted in yesterday's commentary dealers will be looking very closely at the minutes of July's MPC meeting on due out on Wednesday to gauge whether any other members of the committee are moving towards easing monetary policy soon, which would further weigh on sterling.
A Reuter's poll of economists predicts that the MPC will have voted 8-1 in favour of rates staying on hold.
The dollar initially gained from news that Bank of America reported stronger-than-expected quarterly earnings but sentiment remains cautious and the dollar fell back sharply as poor company earnings reports in after hours trading from American Express, Apple and Texas Instruments triggered fresh dollar selling.
Adding too the negativity surrounding the greenback was a report yesterday from the Conference Board that showed that the index of leading US indicators fell 0.1% in June. This was in line with expectations but of more concern to traders was May's figure which was revised down to minus 0.2% from plus 0.1%.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: MPC, Sterling, US recession, Weak Dollar, wise money
posted by Wise Money @ 6:25 PM
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