Today's Interbank rates -
POUNDS TO US DOLLARS 1.5790
POUNDS TO EUROS 1.1618
POUNDS TO AUSTRALIAN DOLLARS 1.5868
EUROS TO US DOLLARS 1.3590
EUROS TO POUNDS 0.8607
EUROS TO AUSTRALIAN DOLLARS 1.3657
POUND HEADLINES:
- Volatile conditions will put GBP to test over the next 24 hours as investors take stock of the prelim Q4 GDP release and BOE governor King's speech today, followed by the MPC minutes tomorrow.
- The UK's economy suffered a shock contraction in the last three months of 2010. The economy shrank by 0.5% in the last quarter, the Office for National statistics (ONS) said.
- The pound has continued to drop against the euro to a new three week low yesterday and continues to fall this morning following the latest GDP figures. Now trading below 1.1600.
- The purple patch continues for Euro bulls and after taking the better of 1.3635, the scene is now set for a move up to 1.3786, the November 22nd high.
- German GFK consumer confidence survey for February comes in at 5.7 beating expectations of 5.4.
- Tough talk about keeping inflation in check from European Central Bank chief Jean-Claude Trichet also helped spur euro rally. Further support for the euro today is likely to come as buyers queue up to buy eurozone debt. Europe's bail-out is expected to be flooded with orders.
- The dollar index slipped below 78.0 yesterday, bringing losses since January 2010 to 4%. The index stayed soft overnight in Asia, and failure to find support around the 78.5389 Fibo area does inevitably not inspire a great amount of confidence. Direction now depends on the Fed statement tomorrow.
- Sterling managed to hold just below 1.60 yesterday but the price has fallen this morning following UK GDP figures.
Kris Charalambides
Tel: 0207 183 2790
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