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The super dollar recovers because the pound and the euro resume their falls

The super dollar recovers because the pound and the euro resume their falls

on the eve, the pound experienced its biggest rise since mid-June, after the Bank of England to announce bond purchase plan to shore up a market for gilts that had been in freefall alongside the British currency. However, the data showed that the liquidity of UK bonds only improved slightly after the intervention.

In the face of lingering doubts about Britain’s economic management and global growth prospects, the pound fell 0.1% to $1.0877, having earlier fallen to $1.0763. Analysts expect the pound to remain volatile.

The quagmire over the pound began with the announcement of tax cuts and budget reduction by the English government, which also promoted reforms such as eliminating the caps on bank profits. The IMF and the risk rating agency Moody’s recommended that the Government review its plan due to the impact it may have on economic activity and its effect recessive.

“The moves were huge yesterday and although they have not been matched today, it makes it difficult to draw any firm conclusions about the intraday direction of the pound,” he said. Jane Foleyhead of foreign exchange strategy at Rabobank London.

The euro, trims some losses after weakening as much as 1% in early London trading. In his last quotes there was a 0.5%, to $0.9688.

Data showed that economic confidence in the Euro zone fell sharply and more than expected in September, and they were also less optimistic about the evolution of prices in the coming months. Is that restrictions on access to energy and the possibility that the Organization of Petroleum Exporting Countries (OPEC) cut their production may lead to a slowdown in activity in an area that is looking for new energy suppliers.

Source: Ambito

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