OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex Flash: GBP decline would be welcome in UK – ANZ

The sterling’s recent weakness on the foreign exchanges remains in tact as an absence of fresh initiatives from the Bank of England and the lack of room to ease fiscal policy leave much onus on a weaker pound to help stimulate growth. The -1.2% decline in January industrial production, -3.5% MoM fall in January exports and -4.2% MoM drop in imports released today confirm the economy has started 2013 with a thud.

There is little objection to the pound’s slide and BoE deputy governor Tucker has implied a weaker exchange rate would be welcome – according to the ANZ Research Team, “we believe that the real exchange rate needs to fall, compared with where it was a few years ago, to get the necessary rebalancing in the economy. A profile of the UK’s core fundamentals (twin current account and budget deficits) and an absence of meaningful credit creation support GBP depreciation.”

Forex: GBP/JPY hovering over 143.00

The pair is submerged in the negative territory on Tuesday, intensifying its intraday decline on the increased bearishness hammering the sterling after worrisome UK data and the renewed strength in the Japanese...
Read more Previous

Euro: Another day, the same range

Even though the euro rallied at the beginning of the New York session, breaking above yesterday's highs, it quickly lost impetus and surrendered most gains. The lack of major events or indicators has left EUR/USD adrift, encased in a comfort area around 1.3000.
Read more Next
Start livechat