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The pound hit a nine-month low against the dollar
www.investing.com/analysis/market-analysis/the-pound-hit-a-nine-month-low-against-the-dollar-3343
The pound hit a nine-month low against the dollar
By Dukascopy Bank SA | Jan 09, 2008 07:00PM ET Previous session overview
On Wednesday, the dollar rose against its key rivals but stayed in narrow ranges during the New York session. Currency buying and selling based on interest rate expectations.
The euro on Thursday is slightly higher against the dollar and the yen but in narrow ranges against both.
German November industrial production was off 0.9% m/m and up 3.5% y/y. Also, EMU-13 Q3 GDP grew a revised 0.8% q/q, up from the earlier 0.7% estimate.
The pound hit a nine-month low against the dollar in anticipation of the Bank of England's monetary policy decision on Thursday. Speculation that the Bank of England might cut its key lending rate for the second consecutive month fueled the sterling's fall to $1.9555 Wednesday.
EUR/CHF has lost some ground recently amid concerns about European economic prospects. Poor German economic data have resulted in a slight dip of the EUR versus the CHF.
The Japanese Yen (JPY) came under pressure on reports that the Bush administration was planning a fiscal stimulus package in the face of mounting fears that US economy was headed for recession.
Market expectation
Several more economists have declared that the US economy will slip into recession this year, and an increasing number are calling for the Fed to cut its policy rate by 50bps this month.
Initial Jobless claims will hold importance before Chairman Bernanke is scheduled to discuss the outlook on the U.S. economy.
Heads of the U.S. Federal Reserve and European Central Bank speak later Thursday, forex markets are likely to stay in tight ranges.
Euro zone interest rates are widely expected to remain unchanged at 4 percent while maintaining a tightening bias.
The Bank of England is expected to keep rates on hold at 5.5 percent at tomorrow's monetary policy meeting.
The World Bank predicts Japan's economic growth will slow to 1.8 percent in 2008, below global expansion of 3.3 percent.
AUD/USD could push above solid 0.8850 resistance in European, U.S. trade if offshore central banks make significant moves or announcements.
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The pound hit a nine-month low against the dollar
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