WITH attention being drawn to cable tomorrow with the BoE quarterly inflation report, investors are likely to see a fall in the sterling-dollar pair. There should be a further downward revision to the bank’s growth forecast. However, inflation itself should be revised up, at least in the near term. And with cable under pressure and challenging its support, a break below it could see further weakness. Capital Spreads quotes a price of $1.6280-$1.6282.
Sterling was out of favour with investors yesterday as concerns over the London riots gripped currency investors. Against the euro the pound did particularly badly, dipping from the €1.1500 mark, back to around €1.1430. Capital Spreads quotes a price of €1.1430-€1.1433 for sterling-euro
The Swiss franc has rallied against many of its counterparts and is taking advantage of its safe haven status. With concerns over the US economic situation, the sovereign debt issues, and speculation that the FOMC will maintain its stimulus measures, the dollar especially is trading much weaker against the franc. We could expect to see a further flight to safety in the franc as this situation continues. Capital Spreads quotes dollar-Swiss franc at SFr0.7411- SFr0.7415
Dollar-yen has given back all the gains it made following the intervention by the Bank of Japan earlier this month, and once again shows how they can’t seem to stop the US dollar from gradually getting weaker and weaker. Dollar-yen is now back where it started before the BOJ sold the yen, and a break below key support could see us head even lower. Capital Spreads quotes a price of ¥77.05-¥77.06.