US$ weekly rates and comments - week commencing 21st July 2008

 

 

Sterling remained steady last week and has kept within a tight trading range against most currencies. In the last 3 months the price has found a new base and this stability is perhaps owing to forecasts that interest rates are to remain on hold in the UK until the end of the year. UK unemployment figures released last week showed an increase and mean that sterling is unlikely to see much upside in the short to medium term.

 

The US$, which now sits at US$1.995/£1 inter bank, fell against the € to record lows last week with Fannie Mae and Freddy Mac, the giant US mortgage companies, having to be bailed much like Northern Rock had been here. All of this helping to remind the world economy that there are still more casualties to come from this credit crunch. Sterling achieved a price above 2 dollars for the first time since April for part of last week.