jjcollins
DIS Veteran
- Joined
- Aug 26, 1999
Well not yet but you might just want to hold on a bit before you buy.
STERLING will hit $2 within weeks, analysts say, following the dollars renewed slide and aggressive buying of the pound by Asian central banks.
The pounds rise against the dollar, which has been greeted with alarm by exporters, is unlikely to stop the Bank of England from raising interest rates from 3.75%, probably as early as next month.
Analysis by ABN Amro shows that a 6% rise in the dollar-sterling rate leads to only a 1% increase in the pounds overall trade-weighted index. For similar reasons, the European Central Bank is unlikely to cut interest rates in response to the euros rise against the dollar.
Sterling has sailed through $1.80 and in the past week or so is in a new ballpark, said Tony Norfield, ABN Amros global head of currency research. The dollars slide was exacerbated by figures on Friday showing non-farm employment in America rose by only 1,000 last month, rather than the expected 130,000.
The pound has risen by nearly 20 cents to $1.85 in the past two months, as currency dealers have sold the dollar. It last hit $2, briefly, in September 1992. In January 1985, it almost dropped to $1. A survey by Ideaglobal.com shows a median expectation among analysts that the pound will rise to $1.95, but many expect it to top $2.
jj...........
STERLING will hit $2 within weeks, analysts say, following the dollars renewed slide and aggressive buying of the pound by Asian central banks.
The pounds rise against the dollar, which has been greeted with alarm by exporters, is unlikely to stop the Bank of England from raising interest rates from 3.75%, probably as early as next month.
Analysis by ABN Amro shows that a 6% rise in the dollar-sterling rate leads to only a 1% increase in the pounds overall trade-weighted index. For similar reasons, the European Central Bank is unlikely to cut interest rates in response to the euros rise against the dollar.
Sterling has sailed through $1.80 and in the past week or so is in a new ballpark, said Tony Norfield, ABN Amros global head of currency research. The dollars slide was exacerbated by figures on Friday showing non-farm employment in America rose by only 1,000 last month, rather than the expected 130,000.
The pound has risen by nearly 20 cents to $1.85 in the past two months, as currency dealers have sold the dollar. It last hit $2, briefly, in September 1992. In January 1985, it almost dropped to $1. A survey by Ideaglobal.com shows a median expectation among analysts that the pound will rise to $1.95, but many expect it to top $2.
jj...........
