Pound Dirham forecast page 3 - GBP AED

POUND STERLING No UK data of note was due for release today, meaning that relative Sterling levels were determined by movements in other currencies. This caused the GBP EUR rate to push forward, as did the GBP AUD and GBP NZD rates, whilst the GBP USD rate remained under pressure. Tonight’s RICS House Price survey provides the next UK...

POUND STERLING This morning’s UK Producer Price Index figure showed that factory gate prices are rising at a slightly higher rate than had anticipated. By rights, this should have caused support for the Pound as investors upwardly revise their projections for UK interest rates. However, the Pound failed to make any headway against the...

POUND STERLING Sterling received a boost earlier today with the release of a better-than-anticipated Purchasing Managers’ Index Services survey. This helped the Pound make gains against all of the majors with the exception of the Swiss Franc during Europe’s morning session, but Sterling’s forward move may be short-lived, with...

POUND STERLING This morning’s UK Retail Sales figures for May severely disappointed the market. The figure showed a monthly contraction of 1.4% last month, cancelling out April’s better-than-anticipated shop sales numbers. With no further UK data of note due for release this week, these numbers will feature heavily in the minds of...

POUND STERLING Sterling came under significant selling pressure in the early part of today’s session after leading rating’s agency Moody’s announced that it was considering downgrading the credit rating of fourteen UK retails banks. The Pound came under further pressure when BoE MPC member Paul Fisher suggested that a UK interest...

POUND STERLING UK trade figures released earlier today outstripped analysts’ expectations, providing a much needed fillip for the Pound. Tomorrow’s Band of England interest rate decision is key. Futures markets have factored in a 15% chance of a rate rise, so if the BoE maintain rates at 0.5%, some downside for is to be expected for...

POUND STERLING The Pound lost some ground in yesterday’s session due to dovish comments from Mervyn King. This morning’s PMI Construction sector figure came out significantly better than expected in February, helping to fuel speculation that the real economy in the UK is waking from its slumber. However, the chances of a rate hike in...

POUND STERLING Minutes of the Bank of England’s February meeting, released earlier today, revealed that three of the nine member committee voted for a hike in the central bank rate of interest. The minutes also suggested that the six members who voted to maintain rates at their current record low of 0.5% might reconsider their decision...

As with all Dirham updates, it is vital to bear in mind that the AED is pegged to the US Dollar, so any strengthening or weakening of the US Dollar will be exactly mirrored by Dirham movements. The Dirham has made significant gains against the majors in the second half of this week, trading down to 5.86 against the Pound. This appreciation...