FX Commentary – 02Mar

Posted: 03 Mar 2010, 12:47am (FOREX)


Sterling continues to be under pressure, with a number of reasons giving traders reasons to move out of the UK’s currency. Yesterday’s M4 money supply data highlighted weakness in the UK economy, and furthered the belief that quantative easing may need to be re-started sooner rather than later. Concerns that we may have a hung parliament in the UK is also adding to the uncertainty around Sterling.

The Australian Central Bank raised interest rates to 4% this morning, with the RBA claiming that their economic growth predictions are back to normal.

Talk of a German/French bailout for Greece continues, however Angela Merkel still insists that the Greeks still need to reduce their deficit.

The Euro has hit nine and a half month lows against the US Dollar as confusion reigns over the state of the Greek situation.

Please be aware that the Beige Book is scheduled to be released tomorrow.

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