The pound reached the symbolic value of $2 = £1 yesterday. This is the highest level since New Year’s Eve and is partly in response to the Bank of England’s caution in cutting interest rates. (Yesterday, the Bank left rates unchanged at 5.25%) Despite the slowdown in the housing sector the Bank still appear worried about cost push inflation. Given that their only target is to keep inflation at 2%, it is understandable that the Bank maintains a ‘hawkish’ stance. (‘hawkish’ means tough stance i.e high interest rates. The opposite of being a hawk is a dove. A Dove is someone happy to cut rates.)
The futures market suggest that there is a 45% chance of a base rate cut in April. The futures market is basically a representation of what investors think is going to happen. They buy options depending on what value they expect.
Although the pound has been weak against the Euro, the Pound’s strength against the dollar is likely to continue as the US economy continues to experience more problems. The Federal reserve has been keen to cut US interest rates and these lower interest rates have severely undermined the strength of the dollar.
It’s a suprise to me that individuals have such amount of money, while other (families) expercially in Africa cannot survive with a dollar per day. Can this people come to the aid of such families, even though sometimes they do tried but the money have to reach the wrong people. You know African are selfish.
I WANT TO DECREASE THE DEADS OF HUNGRY IN INDIA.THERE ARE SO MANY POOR PEOPLES IN INDIA.GIVE ANY I MILLION DOLLARS FOR ME ANY RICH PERSON.