Navigation
Login
Quick Links:
- Personal Forex
Personal Forex
How do I send money overseas?
Watch this short video and see for yourself how easy it is to transfer money internationally.
Why use UKForex?
Operating since 2005, we are one of the largest online foreign exchange providers. Get competitive rates and pay low or no fees at all.
Safety & Security
UKForex is fully regulated and our secure online platform ensures a high grade of data protection.
More Services
Testimonials
Find out what our customers have to say about our service.
.jpg)
Forex Guides and info
Rates and Market news
- Business Forex
Business Forex
How do I send money overseas?
Watch this short video and see for yourself how easy it is to transfer money internationally.
Why use UKForex?
Operating since 2005, we are one of the largest online foreign exchange providers. Get competitive rates and pay low or no fees at all.
For your overseas business
Save time & money with UKForex to make and receive international payments and conduct business abroad.
More Services
Testimonials
Find out what our customers have to say about our service.
.jpg)
Forex Guides and info
Rates and Market news
News & Commentary
Forex News
Sterling dips vs dollar, focus shifts to Bernanke
28 August, 2012 - Reuters
- Sterling trades lower vs dollar, tracks EUR/USD
- Strong technical resistance at $1.5912
- Investors focused on Jackson Hole later in week
By Nia Williams
LONDON, Aug 28 (Reuters) - Sterling eased against the dollar on Tuesday, tracking a dip in euro/dollar as investors trimmed long positions in perceived riskier currencies, and looked set to be subdued in the run up to a meeting of central bankers at the end of the week.
With no UK data scheduled, analysts said sterling would take direction from moves in the euro. Many market players were expecting the single currency to fade lower after rallying strongly last week on speculation policymakers were readying for action in September to tackle the euro zone debt crisis.
"Cable (sterling/dollar) is going to go with euro/dollar which I suspect will grind lower, just because the move higher in past days was perhaps overdone," said Paul Robinson, head of European FX research at Barclays.
Sterling dipped 0.1 percent to $1.5777, retreating further from last week's three-month high of $1.5912.
Technical analysts highlighted strong resistance around $1.5910, the 61.8 percent retracement of the late April to early June fall from above $1.63 to around $1.5270.
The main focus for investors will be Friday's speech by Federal Reserve Chairman Ben Bernanke at an annual informal meeting of central bank chiefs at Jackson Hole, Wyoming.
Any hint the Fed is considering another round of quantitative easing could lift riskier currencies, including sterling, against the safe haven dollar.
Market players were also looking ahead to Bank of England and European Central Bank policy meetings on Sept. 6. While the BoE is expected to keep interest rates and its quantitative easing total unchanged, many investors are anticipating action from the ECB to help curb Spanish and Italian borrowing costs.
Barclays' Robinson said if the ECB does deliver, sterling could retest $1.59, but any strength may be short-lived.
"The UK economy is significantly weaker than the U.S. economy and over the next few months I think that will dominate," he said.
A second reading of UK second quarter GDP on Friday showed the recession was not quite a deep as initially estimated but the economy still contracted by 0.5 percent.
Sterling was close to flat against the euro at 79.13 pence, not far off last week's peak of 79.33 pence. Lloyds analysts said the single currency could struggle to break above that level.
"A more positive outlook for the euro zone at this stage still seems more likely to push sterling/dollar up than euro/sterling, at least until there is evidence of improvement in the euro zone economy," they said in a note.
(Editing by Chris Pizzey in London)
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Register Free
IMPORTANT: Use of this website is subject to the Website Terms. Use of the Services of the UKForex Limited is subject to the Client Agreement. Nothing on this website constitutes or should be construed as financial advice. This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites.
DISCLAIMER: UKForex makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this web site. Read full disclaimer.
UKForex provides international money transfer services to private clients and business customers. Use our free currency converter, exchange rate charts, economic calendar, in-depth currency news and updates and benefit from competitive exchange rates and outstanding customer service.
UKForex is regulated by the Financial Conduct Authority (FRN: 521566) for the provision of payment services.
Money Laundering Regulation Number (MSB): 12219180. Issued by HM Revenue & Customs (HMRC)
Read our Money Laundering Statement