At 0420 BST today, the GBP is trading 0.1% higher against the USD at $1.6250, 0.1% lower against the EUR at €1.1037 and 0.1% up against the JPY at ¥143.73.
At 0420 BST today, the GBP is trading 0.1% higher against the USD at $1.6250, 0.1% lower against the EUR at €1.1037 and 0.1% up against the JPY at ¥143.73. According to Nationwide Building Society, UK consumer confidence remained near the highest level in 1 1/2 years in November, amid higher expectations from over the economy’s prospects in 2010. However, the currency remained under pressure, amid concerns that Dubai’s state-controlled companies would have to sell UK assets to pay for loan obligations.
The EUR is trading 0.2% higher against the USD at $1.4721. However, gains in the EUR may come under pressure, amid speculation that credit ratings of more European nations would be cut, after Greece’s debt ranking was lowered by Fitch Ratings.
The EUR is trading 0.3% higher against the JPY at ¥130.22, amid speculation that the Bank of Japan would take more credit-easing measures, after Japan’s economy grew less than earlier estimated in the third quarter.
Yesterday, the GBP ended lower against the USD, as Moody’s Investors Service warned that the top debt rating on the UK may come under pressure, as public finances are worsening. The currency extended declines, as UK manufacturing unexpectedly stalled in October. Meanwhile, Halifax reported that UK house prices rose 1.4% to an average of £167,664, compared to a gain of 1.2% in October.
The USD gained against the EUR and GBP, as ongoing debt worries in Dubai and credit rating downgrade for Greece spurred inflows in safe haven assets.
Posted by Ultimate Forex Profits
