Phil Bennetts

Currency Exchange Update 16/11/09



Posted: Monday, November 16, 2009

by
Foreign Exchange Explained

The Pound a report from Rightmove PLC has stated that for the first time in three months UK house sellers have been asked to reduce house prices as demand dwindles leading into Christmas. The average price fell by 1.6% to 226.440.00 from October when they rose by 2.8%. Meanwhile the currency has shaken off the down trend from last week and opens this morning on a positive note against both the Euro and the Dollar.

The Dollar fell again against the majors on Friday after the US government said the trade deficit had widened in September. This lured investors away from the safe-haven dollar. The trend still indicates that investors approach in the market is still that of risk rather than a cautious approach.

The Euro speculation is growing that the ECB could raise interest rates in the near future. Investors are claiming the Euro is the one currency to watch. With a rate increase, we could see the Euro making even further gains against the pound and the dollar. However we could see some resistance to the increase as business in the Euro zone could suffer. Short term the Euro zone has some big data out today anything released that could be considered negative; we could see sterling head towards 1.13's

Interbank Rates at 8.10am UK time

GBP-EURO 1.115

GBP-USD 1.672

GBP AUD 1.79

Phil Bennetts

Foreign Exchange Explained

Phil Bennetts
Currency Exchange Service
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