Home

 
India Bullion iPhone Application
  Quick Links
Currency Futures Trading

MCX Strategy

Precious Metals Trading

IBCRR

Forex Brokers

Technicals

Precious Metals Trading

Economic Data

Commodity Futures Trading

Fixes

Live Forex Charts

Charts

World Gold Prices

Reports

Forex COMEX India

Contact Us

Chat

Bullion Trading Bullion Converter
 

$ Price :

 
 

Rupee :

 
 

Price in RS :

 
 
Specification
  More Links
Forex NCDEX India

Contracts

Live Gold Prices

Price Quotes

Gold Bullion Trading

Research

Forex MCX India

Partnerships

Gold Commodities

Holidays

Forex Currency Trading

Libor

Indian Currency

Advertisement

 
RTRS:Sterling outperforms euro as euro zone inflation on tap
 
(Reuters) - Sterling rose for a fourth straight day against the euro on Thursday as a survey showing widespread expectations of further disinflation in the currency bloc contrasted with Britain's solid recovery.

But the pound fell against the dollar as rising geopolitical tensions drove investors into safe-haven assets and the most liquid currencies. Ukraine on Thursday said it would regard any movement by Russian military in Crimea outside the Russian Black Sea fleet's base in Sevastopol as an act of aggression.

The euro was down 0.1 percent against the pound at 82.05 pence, hovering near its lowest since February 18.

Against the dollar, sterling was down 0.2 percent at $1.6640, with near term support seen at $1.6583 - the low struck on February 24. It had briefly jumped to above $1.6700 on Wednesday after British gross domestic product (GDP) data confirmed a broad-based recovery and cemented expectations of a rate hike in the spring of 2015.

In contrast, more signs of falling price pressures in the euro zone will bolster expectations that the European Central Bank may have to ease policy further. Investors are looking for clues on Friday's euro zone inflation data from German data due later in the day.

"A slow-down in the German figure to 1.1 percent year-on-year from 1.2 percent will add weight to another low 0.7 percent year-on-year euro zone release tomorrow and keep risks alive of a rate cut from the ECB at next Thursday's meeting," said Chris Turner, head of currency strategy at ING.

"We favour euro/sterling turning lower to 81.60/70 pence."

Sterling was the best performing major currency of the second half of 2013 and it has extended that run this year, based on speculation that an improving economy may prompt the Bank of England to raise interest rates early in 2015.

Sterling overnight interbank money market rates indicate the chances of a rate hike have been rising in recent days, and on Thursday implied the chance of a rise in 15 months' time.

Ben Broadbent, a member of the BoE's Monetary Policy Committee, said on Wednesday that the strength of the pound reflected the fact that other economies, particularly elsewhere in Europe, have not grown much.

"As a consequence of firmer data the market appears to be gearing up for an eventual rate hike, with BoE members sounding more upbeat, even if it is unlikely to occur any time soon," analysts at Credit Agricole said in a note.

"Consequently over the near term the pound looks well supported although eventually we expect the currency to settle back to earth. In particular, three-month interest rate differentials with the dollar appear to suggest that sterling/dollar gains are overdone."
Source