The Euro has been pushed upwards by chart driven Forex investors following the upward trend and also by Forex investors re-evaluating their interest rate expectations for the region and buying more Euro’s to invest in European assets.
In other news the Bank of England’s (BoE) inflation report contributed to pressure on the GBP as the Forex market reduced its interest rate expectations. The BoE expects inflation to drop below the desired 2% annual CPI over the next 12 months. The GBP fell briefly as the inflation report was released, but quickly recovered to stabilize about 1.95.
Read the rest of this entry »
Tags:
Bank Of England,
CPI,
Euro,
Forex Investors,
Forex Market,
GBP,
Inflation,
Interest Rate
The USD drifted higher against major rivals as dealers monitored the outlook for interest rates, while the GBP also weakened on news that a Bank of England policymaker had suddenly died.
The Euro fell to 1.2637 dollars in early European trading from 1.2659 dollars late on Wednesday in New York.
The USD climbed to 115.14 yen from 114.86 yen on Wednesday.
In Asian trading, the USD had extended losses ignited Wednesday after European Central Bank chief Jean-Claude Trichet raised expectations for further rate increases in the eurozone.
Read the rest of this entry »
Tags:
Asia,
Bank Of England,
Central Bank,
Euro,
GBP,
Interest Rates,
New York,
USD,
Yen
British 12-month inflation rose to 2.2 percent in May from 2.0 percent in April, lifted by soaring domestic energy bills and rising motor fuel prices, official data showed.
May’s figure breached the Bank of England’s government-set target of 2.0 percent — and was the highest reading since October 2005 when it stood at 2.3 percent.
Read the rest of this entry »
Tags:
Bank Of England,
Inflation
Bank of England (BoE) policymakers are predicted to maintain British interest rates at 4.50 percent on Thursday for the 10th month in a row.
The decision-making body of the BoE, the Monetary Policy Committee (MPC), will likely freeze the “repo” rate, at which the central bank lends to commercial banks, according to a poll of 35 forecasters by AFP’s financial news service AFX News.
However, economists are speculating that the cost of borrowing could rise as soon as August to keep inflation in check.
Read the rest of this entry »
Tags:
AFX,
Bank Of England,
Central Bank,
Interest Rates,
Monetary Policy
February 14th, 2007 by 
Jon
