Exchange rate update for Tuesday 29th
29 November, 2011
Exchange rates continue to show volatility as the UK autumn statement, Eurozone debt auctions, and US financial news all dominate the headlines.
At home, the Chancellor’s autumn statement to Parliament has not had the negative effect on sterling that many were expecting. With the OECD already downgrading UK growth, perhaps the worst of the news was already out yesterday, and George Osborne announced several new measures intended to boost economic growth. Time will tell whether these are effective, and whether the Pound can hold its ground.
UK house price and mortgage data out this morning was also better than expected.
Meanwhile in Italy, a bond auction this morning again sold out but at interest rates of up to 7.9%. Eurozone finance ministers are meeting in Brussels later to discuss ways to expand the bailout fund, seen as key to stopping more countries being drawn into the debt crisis. The Euro remains weak with rates for sending Euro payments still at the better end of their recent trading range.
In the USA, American Airlines has filed for bankruptcy protection, but today’s house price and consumer confidence figures were both better than expected.
Sterling is broadly up on today’s trading, with US Dollar rates now nearly 2c better than overnight.
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