Cable

Cable traded to a 10 week high on Sterling strength, as investors believe that there the Bank of England will not do any further quantitative easing. This was compounded with the better than expected GDP figure, and avoided the anticipated triple-dip recession. The macro data from the UK was in contrast to the United States growth figures released on Friday, which were below expectations. Reuters sights the 1.5574 level as the next level of technical resistance for GBPUSD as it is the 100 da…

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On Thursday the eagerly anticipated preliminary reading for UK GDP Q1 from the ONS showed that the UK had avoided a dreaded triple-dip recession, for now. Chancellor, George Osborne has been under considerable pressure to change course away from the current path of austerity. Following consecutive readings of poor economic data, criticism from the IMF and a downgrade by Fitch, Osborne has some briefing space. The ONS expect the UK economy to grow by 0.3%, which might be the milestone remembe…

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The Office for National Statistics (ONS) releases its preliminary UK GDP estimate for the first Quarter of 2013 at 9:30am (BST). Economists are expecting a marginally positive print of 0.1%, however a contraction would show that the UK economy has gone back into a recession for a third time since the credit crunch in 2008. A “triple-dip” recession could lead rating agency S&P to downgrade the UK’s credit rating from its top notch of AAA, on the 5th April S&P said&ld…

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During the early part of the US session yesterday Sterling was bid in FX space, reversing recent declines. Mervyn King current Governor of the Bank of England had a pre-recorded, exclusive interview with ITV News (British News Channel) however the price action indicates that this could have been leaked. King said that the recovery is finally “in sight,” only a short time after he changed his stance and voted for further quantitative easing. In the interview he said that if you re…

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NIESR released their forecast for UK growth yesterday afternoon, for the 3 months to February of -0.1%, signalling the likelihood of a triple-dip recession. Worryingly their report details that they expect “output to pass its peak in early 2008 until 2015.” FTSE 100 closed at a new 5-year high as investors shrugged of concerns following poor UK macro data Sterling strengthened throughout the US and Asian sessions, after trading at 2 and half year lows in recent days…

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There has been speculation for some time that the UK, would lose its coveted AAA credit rating, as the coalition struggles to meet its fiscal targets and growth continues in a “zig zag” fashion as coined by Mervyn King. The downgrade is an embarrassment to the Chancellor George Osborne, as he had said that keeping the top credit rating would be a measure of his and the coalition’s term. This is the first downgrade in the 25 years that Moody’s has been rating debt. Ana…

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The headlines were captured yesterday by the UK Prime Ministers David Cameron’s “Britain and Europe” speech. In well prepared dialogue, Cameron put forward a defining moment for the United Kingdom, how the country moves forward with the Eurozone. He explained that he will attempt to renegotiate powers from Brussels and will then hold an in/out referendum for the UK in Europe to appease the Tory Eurosceptics. Prior to his speech at Bloomberg HQ in London, sterling was weaken…

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Bank of Japan has pledged to Fed style open-ended asset purchases, with the Yen and Nkkei easing following BOJ announcement, as traders had bought the rumour and sold the fact Fresh data from the Bundesbank show that Anglo-German trade in goods and services soared to €153bn in the first nine months of 2012 - Telegraph S&P affirmed Portugal's BB rating, while the outlook remains negative Japan’s Economic Minister Amari said that the government has no inten…

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Happy New Year from all at Abshire-Smith, may 2013 be prosperous for you. Today is the first trading session of the New Year, please check your client emails for market trading times, or contact us if you are unsure. Many traders will have been away from their desks over the holiday period, with the majority back this morning. The US house of Representatives has passed the fiscal cliff bill, which has been discussed at length over the last 6 months. The Congressional Budget Offic…

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Fitch affirms Italy at A- with a negative outlook Insurers are conducting a war of words with regulators trying to prevent a repeat of AIG’s collapse –Financial Times Commodity trading giant Trafigura mulls London float of its subsidiary Puma BP is looking to change the terms of its contract with the Iraq government for the Rumaila oilfield, as it seeks to scale back its production target – The Daily Telegraph The coalition is pressing ahead with pla…

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On Wednesday George Osborne admitted that the UK government had failed to meet both its growth and debt forecasts that it had set. This was an embarrassing moment for the Chancellor , as previous austerity measures laid out in “plan A,” were set in order to gain control over the spiralling UK national debt. Further austerity measures were introduce as Osborne attempts to balance the books, which notably have been considerably impacted by global crisis in the US and Europe. During…

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It is the first market update of the trading month, and in the UK the countdown to Christmas begins. If the shorter hours of day light hadn’t reminded people that is now winter, then the freezing temperatures over the last few days have. The shops on the UK seem to be attempting a first mover advantage, with many slashing prices prior to their busiest period. I briefly ventured into a few shops at the weekend and was amazed to see how many retailers were offering discounts! Many chains…

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US voters are in the final stretch of on the most expensive Presidential campaigns in history. Barack Obama and Mitt Romney were campaigning up until the final hours in some of the key swing states and voters will be marking their ballots today. There will be exit poll indications of the result most likely from the close in Europe. However the Obama’s lead is believed to be marginal and exit polls are only an indication. Analysts have written various notes on the potential market…

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The NYSE and Nasdaq trading will be halted for trading today, for the first time in 27 years due to Hurricane Sandy. Evacuation orders have been put in place in low lying coastal areas on the North East of the United States due to the risk of flooding. The NYSE has revised its initial release that it was to close physical floor trading, to cease all trading on Monday and possibly Tuesday. Headlines Bank of England’s Spencer Dale has warned that Britain is heading into a sha…

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