Wednesday May 17, 2006 - 10:37:55 GMT
Share This Story
INVESTICA Ltd - www.investica.co.uk
MPC vote boosts Sterling
Sterling held firm against the Euro on Tuesday at close to 0.68 and found support below 1.88 against the dollar as the US currency was unable to sustain gains. Sterling gains extended to 1.90 against the dollar on Wednesday after the MPC minutes.
UK unemployment rose by a further 7,700 in April while the March headline earnings growth was weaker than expected at 4.2%. The MPC minutes were the main focus and recorded that six members voted for rates to be left unchanged while one voted for a cut and one voted for an increase. The vote for an increase will increase speculation that the bank will move to increase rates over the next few months with some speculation over a move as early as June.
The recent inflation data will also reinforce speculation that interest rates will need to rise. Markets are, however, pricing in two interest rate increases by year end and Sterling will find it difficult to secure further strong buying interest on yield grounds as these expectations are vulnerable to a downgrading over the next few weeks with doubts over consumer spending trends.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."