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Currencies Direct February 2nd 2009 - 2 minute read

It’s Going to be a Very Subdued Start

… to the week with the Capital largely cut off by the this morning’s huge snow dump. Trading rooms are likely to be half staffed at best so expect a brief flurry of activity this morning followed by an early break for home.

We have seen Sterling come off this morning, largely it seems on Sunday’s report from Moody’s that they were going to cut Barclays’ long term rating by 2 notches to Aa3. Although this is only on line with the earlier move by Fitch, Far East traders took it as a reason to take profits on recent Sterling gains.

This week’s focus will be on the rate decisions from the MPC and the ECB, both on Thursday. Recent comment from ECB members, especially M Trichet, casts some doubt on a cut materialising this time in Euro rates and although there is still the expectation that we will see a further 50 basis points cut in UK rates, the latest minutes from their January meeting suggests that a good number of the members are partial to holding rates where they are and using other means as an economic stimulant.

This morning we are to due to get the UK PMI survey which, following recent better than anticipated Eurozone flash PMI numbers and German IFO survey, is expected to show a modest rise for January. From the US this afternoon we get the manufacturing ISM survey which is expected to come in around the same level as January’s number.

 

The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.

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It’s Going to be a Very Subdued Start The contents of this report are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. Currencies Direct cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.

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Currencies Direct

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