Thread: OzForex Market Update (18/10/2010 - 22/10/2010)

Good morning all, I hope you had a great weekend?

It’s been a case of 2 steps forward, one step back, for commodity currencies this week following China’s surprise interest rate hike. Growth and inflation figures released from China explained The 25pt increase from Asia’s largest economy with Chinese GDP expanding 9.6% for the previous quarter, exceeding expectations, while inflation accelerated at its fastest pace in 23mths at a rate of 3.6%. The Aussie’s rally against the Pound seems to have stalled, unable to break past 0.6250 against the Sterling. While record low in consumer confidence in New Zealand and a refusal by RBNZ Governor Alan Bollard to intervene in the foreign exchange market to aid the nation’s exporters restricted the New Zealand Dollar. The Kiwi barely gained 50pts on the Sterling opening this week at 0.4717 British Pounds.

The American Dollar pounced on the Sterling at the start of the week climb as much as 1%. Starting at a weekly low of 0.6234 against the Pound, the Greenback climbed to a high of 0.6389 British Pounds as investor partook in a round of profit taking. The Euro took off mid-week against the Pound after minutes released from the Bank of England showed a 3 way split 7-1-1 among its policy makers. The Euro rose above 0.8900 against the British Pound when Uk retail sales figures shocked all, declining 0.2%. Investors, this week, shying away from the British Pound as signs the state of the UK economy continues to deteriorate while the government introduces its deepest spending cuts since WW2.

Have a great week.


Regards

Jon

Jon Sermon
Alliance Manager

http://www.ozforex.com.au/

Thanks Jon.

Thanks for that, Jon.
Good information as always.

It certainly is an interesting time.. not sure how some of the spending cuts will be seen in the UK.
I know that if anyone actually had the guts to do what needs to be done over here, they'd be voted out of office before it could even take place.

Have a great week!