Lost iN The Beat

Weekly Reading 25/01/2009

Again start with my favorite topic £££

U.K. Pound Serves as Omen for Dollar

The U.S. and the U.K. face very similar predicaments, from a deepening recession to a damaged financial system. Both are orchestrating massive bank bailouts and attempting to assist struggling homeowners. Both are ramping up government spending even as they rely on financing from overseas investors. And both countries have central banks that have slashed interest rates and opened the door to unconventional ways of stimulating the economy.Yet their currencies have headed in opposite directions.

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While the dollar continues to benefit from its unique position in financial markets for now, it is far from clear that the resilience will last. "Right now the market is beating up on the pound, but at some point it will look for something else to pick on," says Paul Mackel, a currency strategist at HSBC in London.

Gold breaks above $900/oz on currency volatility

Spot gold rose as high as $902.50 an ounce, which was the loftiest price since October 10. It was at $895.80 an ounce at 2:19 p.m. EST, up 4.7 percent from Thursday’s last trade of $855.50. It rose to an all-time high of 700.37 in euro terms, and a record 659.71 pounds when priced in sterling.

This entry was posted on Sunday, January 25th, 2009 at 2:32 am and is filed under Finance. You can follow any responses to this entry through the comments feed. You can leave a response, or trackback from your own site.

Tags: Central Banks, Currencies, Currency Strategist, Currency Volatility, Financial Markets, Government Spending, Hsbc, Interest Rates, London Gold, Mackel, Omen, Ounce, Overseas Investors, Oz, Predicaments, Recession, Resilience, Spot Gold, Sterling, Unconventional Ways

Posted in Finance

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