The Financial Fixed Odds update from David Evans, Market Analyst, BetOnMarkets.

 
Early Forex Report:

This morning has started with the pound selling off once again. Although, so far, sterling is managing to hold above yesterday’s lows.

The morning’s main news item has been the Royal Bank of Australia raising interest rates to 4%.

Unlike last month’s shock no change announcements, this move surprised very few people and the Australian Dollar is trading down as traders weigh up the still cautious comments emanating from the central bank.

The Kiwi dollar actually heads up this morning’s top fallers.

Still to come today we have UK Construction data and the Canadian interest rate statement. No change is expected, but keep your eye on the US Dollar/Canadian Dollar Spreads for a reaction around 14.00.

Pound Suffers from More Bad News

Yesterday was quite a ride for forex markets with the British pound sinking to fresh new multi month lows against most other currencies.

The move was attributed to:

• A Sunday Times poll which points to the Conservative Party only having a narrow lead over labour
• News that Mortgage lending has slumped
• News that the Prudential was looking to take over parts of AIG – this would require the Pru to enact a large purchase of dollars and sell of Sterling

Whatever the reason, the pound doesn’t make for pretty reading.

However, it wasn’t all one-way traffic, especially against the euro, and traders retraced some of their initial moves. Also see Euro – Pound Spreads.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.