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Old Jun-26-2006, 01:03
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Talking sterling near two-month troughs

strong UK housing data, which shows the house prices rose at their sharpest annual rate in 2.5years in june, didn't change the view that rates will be kept in near term. while at the other hand, US Fed is seeing a growing expectation for another rate hike in Aug. after the expected 25 bps hike in this Thuesday.
Fed rate hike expectation has been the biggest market mover during the last few weeks.

sterling fell to the weakest since 8th June.
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Old Jun-26-2006, 04:06
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Location: Vitoria
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Default sterling fell for 2 reasons

1. British spend millions on booze, but they do it abroad, in Germany.
2. British have a low sentiment index: they watched their team playing at the WC.
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