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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 3054
Posted: Feb 22, 2010 5:00
Comments: 3054
Forum Topic:
GBP
Discuss GBP
Today average earnings increase from 1.8% to 2.3% is going to alert Messrs King & Co to the need now for a possible rate increase. I think they will want to see another month's #'s before changing their stance. That would be my advice to them.
From MNI FX Bullets
14:55 06/20
CABLE: (correct's downside target) Morgan Stanley strategists have
entered into a cable short at $1.6230, with a stop at $1.6330 and a
downside target of $1.5450. Given disappointing UK data and lower
prints, "we are concerned that the consensus is too optimistic on the
prospects of a rebound of growth in the UK and point to our economists
below consensus growth forecast of 1.2% for this year." Also, they
remain concerned about the "pro-cyclical nature of the pound" and remind
that "much of the UK government's deficit reduction plan is centered on
externally driven growth (if global economy slows, cable comes under
pressure). In addition, they see safe-haven sterling flows coming to an
end. Finally, larger global risk aversion would likely send the dollar
higher and weigh on cable. Sterling is likely to struggle to hold above
important trendline support in place around $1.6190/$1.6200, the
strategists say.
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Ashraf
UK PRESS: Some of Britain's leading economists are warning the
chancellor, George Osborne, that the economy is too fragile to withstand
his drastic spending cuts and that he must draw up a plan B, the
Observer said Sunday Experts, including two former Whitehall advisers
and two signatories of last year's high-profile letter backing the
Tories' cuts, have told the Observer that they have profound concerns
about the direction of Treasury policy. However, Monday's Telegraph sees
50 different economists backing the government in its plan to stick with
cuts. Pay your money ...
00:16 06/06
UK PRESS: House prices could fall into a double dip this year and next,
trapping 1.3m homeowners in negative equity, according to an analysis of
the property market, the Sunday Times says. The stark assessment by
Morgan Stanley, the investment bank, is based on its forecast that house
prices will fall 3% this year and tumble a further 7% by the end of
2012, wiping out the 10% gain made since the market bottomed in 2009 and
rolling back prices to levels last seen in 2004, the paper says.
Ashraf