EUR/GBP
Posted on April 21st, 2008 in Currency Analysis, RTT News |
Euro Rises To 4-day High Against Pound [EUR/GBP]
4/21/2008 6:00:52 AM The European currency showed a mixed trading against its major counterparts during early deals on Monday. The euro advanced versus the pound and the dollar, but it weakened against the rest of majors. Against the sterling, the euro rose to a 4-day high due to across the board weakening of the latter.
The euro rose to 1.5885 against the dollar at about 4:05 am ET Monday. Currently, the pair is trading at 1.5855, compared to last week`s close of 1.5809.
Against the franc, the European currency weakened during today`s early deals. At about 4:05 am ET, euro touched 1.6045 against the franc, compared to Friday`s New York session close of 1.6104.
Data released by the Swiss Federal Statistical Office showed that the overall index of producer and import prices rose 3.9% year-on-year in March. Economists had expected the rate to ease to 3.5% from 3.6% recorded in February. On a monthly basis, the producer and import price index increased 0.6% to reach 109.9 points.
The euro climbed to a 4-day high against the pound due to across the board weakening of the latter. By about 5:30 am ET, the euro fetched 0.8001 against the sterling , compared to Friday`s close of 0.7917.
UK banking system received a lending boost from the central bank today. The Bank of England, or BoE launched the much-hyped GBP50 billion Special Liquidity Scheme to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills.
According to Mervyn King, Governor of the Bank of England, “The Bank of England`s Special Liquidity Scheme is designed to improve the liquidity position of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains with the banks.”
A report from Rightmove released today stated that U.K. housing prices have fallen yet again in the month of April. The report says that prices fell by 0.1% from March.
The European currency dropped to 164.06 against the yen at about 4:00 am ET. As of now, the euro-yen pair is trading at 164.27, compared to 164.01 hit late Friday in New York.
Japan`s Ministry of Finance downwardly revised its regional economic assessment for the first time in more than six years. The Ministry added that economic conditions worsened in five of the eleven regions across Japan during January to March period.
Activity in Japan`s service sector declined a seasonally adjusted 1.7 % in February compared to the previous month, a report from the Ministry of Economy, Trade and Industry showed today. The tertiary activity index for February registered 108.4, compared to a reading of 110.3 for January.
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