{"id":392,"date":"2010-12-22T10:24:43","date_gmt":"2010-12-22T10:24:43","guid":{"rendered":"http:\/\/www.mycurrencytransfer.com\/blog\/?p=392"},"modified":"2010-12-22T10:43:32","modified_gmt":"2010-12-22T10:43:32","slug":"rationalfx-will-uk-raise-interest-rates-to-2-75-by-2010-22122010","status":"publish","type":"post","link":"https:\/\/www.mycurrencytransfer.com\/blog\/rationalfx-will-uk-raise-interest-rates-to-2-75-by-2010-22122010\/","title":{"rendered":"RationalFX: Speculation that UK will raise interest rates to 2.75% by 2012 [22\/12\/2010]"},"content":{"rendered":"<p><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\"> <\/span><\/span><\/p>\n<p><strong>Yesterday\u2019s Market Movers<\/strong><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>German consumer confidence came in slightly worse than expected but this had no impact on the Euro. There are more worries in the Euro-zone which has clouded confidence in the European economy as they have made people weary to spend their money. We saw EUR\/USD remain at the weak position around 1.3150 level.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>We had the Public Sector net borrowing figure for UK this was expected to come in higher than the previous, predictions were correct as the figure rose by 14 billion. A large some of this was towards the Irish bailout in access of 7 Billion. Sterling fell on the back of this information and made GBP-USD trade below 1.55 ranges and made GBP-EUR go down to 1.1750.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\"> <\/span><\/span><\/p>\n<p><strong>Today\u2019s market movers<\/strong><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>The BoE minutes are due today. The market will be keen to see how the members voted and if there are any other movements on interest rates and QE.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>There is already speculation that the UK will raise rates to 2.75% by 2012. This is due to the inflationary pressures, however Mr. King is still confident that this will naturally come down once the budget cuts and VAT increase takes effect.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>Raising interest rates may make the Pound more attractive, reduce external investment (help inflation), but it will also have a very negative effect on the majority of the UK population who are just about managing to pay there morgages every month! So how do you make the Pound stronger without increasing interest rates?<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>Also in the UK there is the UK Current account figure which is a net flow of current transactions. A high reading is seen as positive as it proves that the flow of capital into the UK exceeds the capital reduction. However we may see sterling drop as expectations are exceeding into the negative territory.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>UK GDP (Q3) and (YoY) is a broad measure of Economic activity and we will see a lot of movement in Sterling when the figure is released.\u00a0 In previous figures the GDP figure had grown, if better this will be good for the pound as it will show our economy has grown, if negative it will show the UK isn\u2019t doing as good.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>US GDP annualized is expected to come out with a positive prediction at 2.8% from 1.7% whilst we have also have GDP price index which is also predicted to be better.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<ul>\n<li><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\">\n<p>US Existing home sales are expected to come in better than previous (yoy) however real personal consumption expenditure is expected to come out worse than previous. A mix bag of data today however if these figures come out better for the US we could see the US Dollar strengthen across the board.<\/p>\n<p><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"color: #666666; font-family: Arial;\"><span style=\"color: #666666;\"> <\/span><\/span><\/p>\n<p><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/p>\n<p>\u00a0<\/p>\n<div>\n<table style=\"border-collapse: collapse;\" border=\"1\" cellspacing=\"0\" cellpadding=\"3\" width=\"40%\" bordercolor=\"#000000\">\n<tbody>\n<tr>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> <\/span><span style=\"color: #666666; font-family: Arial;\">Currencies<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> High<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> Low<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> Support<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> Resistance<\/span><\/div>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> GBP\/EUR<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\">1.1834<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> 1.1735\u00a0<br \/><\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\">1.1700<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\">1.1850<\/span><\/div>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> GBP\/USD<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> 1.5576<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> 1.5451<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> 1.5440<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\">1.5600<\/span><\/div>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> EUR\/USD<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> 1.3202<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> 1.3088<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\"> 1.3050<\/span><\/div>\n<\/td>\n<td width=\"20%\" valign=\"top\">\n<div><span style=\"color: #666666; font-family: Arial;\">1.3250<\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div><span style=\"color: #666666; font-family: Arial;\"> <\/span><\/div>\n<div><span style=\"color: #666666; font-family: Arial;\"><span style=\"font-family: Arial;\">We wish you a very nice day.<\/p>\n<div><a title=\"Request a FREE no obligation quote from RationalFX\" href=\"http:\/\/www.rationalfx.com\/\">The RationalFX Team<\/a><\/div>\n<p><\/span><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday\u2019s Market Movers German consumer confidence came in slightly worse than expected but this had no impact on the Euro. There are more worries in the Euro-zone which has clouded confidence in the European economy as they have made people weary to spend their money. We saw EUR\/USD remain at the weak position around 1.3150 level. We had the Public [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,27,24],"tags":[52],"_links":{"self":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/392"}],"collection":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/comments?post=392"}],"version-history":[{"count":5,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/392\/revisions"}],"predecessor-version":[{"id":402,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/392\/revisions\/402"}],"wp:attachment":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/media?parent=392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/categories?post=392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/tags?post=392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}