Foreign Exchange - Pounds Sterling and Euro Exchange Rate Outlook
Yesterday a draft EC paper, drawn up together with the ECB, was released. It recommends the "bad bank" approach to the crisis as the least budget-heavy way to rescue banks. This assumes the bad bank toxic assets can eventually be sold for a profit… How to get started? "In order to limit this budgetary impact, one could consider combining a bad-bank approach and asset insurance whereby bad assets are transferred to a separate entity which benefits in some way from a government guarantee," the report suggests, according to Market News.
Meanwhile, officials in the UK are defending quantitative easing, aka buying Gilts, as the first line of defense. BoE Gov says the Bank has a mandate to hold inflation at around 2%--not zero. It’s a symmetrical obligation, meaning the Bank has to create inflation. The US Fed may end up in the same place, as Bernanke has suggested, but is holding off as long as it can. So far the ECB rejects any thought of quantitative easing, mostly because it has a "no bailout" clause and is technically forbidden to buy government paper lest it be charged with favoritism.
Pounds to Euros = 1.1087
Euros to Pounds = 0.9003
Bye For Now
Barbara Rockefeller
Foreign Exchange Trading
Forex Trading Reports - Click for a free trial
Buying Euros? Buy Euros at the best euro Rates!
Buying Dollars? Buy US Dollars at the Best Dollar Rates!
Buying Australian Dollars? Buy Australian Dollars at the Best Australian Dollar Rates!
Contact IMS Foreign Exchange + 44 207 183 2790
Yesterday a draft EC paper, drawn up together with the ECB, was released. It recommends the "bad bank" approach to the crisis as the least budget-heavy way to rescue banks. This assumes the bad bank toxic assets can eventually be sold for a profit… How to get started? "In order to limit this budgetary impact, one could consider combining a bad-bank approach and asset insurance whereby bad assets are transferred to a separate entity which benefits in some way from a government guarantee," the report suggests, according to Market News.
Meanwhile, officials in the UK are defending quantitative easing, aka buying Gilts, as the first line of defense. BoE Gov says the Bank has a mandate to hold inflation at around 2%--not zero. It’s a symmetrical obligation, meaning the Bank has to create inflation. The US Fed may end up in the same place, as Bernanke has suggested, but is holding off as long as it can. So far the ECB rejects any thought of quantitative easing, mostly because it has a "no bailout" clause and is technically forbidden to buy government paper lest it be charged with favoritism.
Pounds to Euros = 1.1087
Euros to Pounds = 0.9003
Bye For Now
Barbara Rockefeller
Foreign Exchange Trading
Forex Trading Reports - Click for a free trial
Buying Euros? Buy Euros at the best euro Rates!
Buying Dollars? Buy US Dollars at the Best Dollar Rates!
Buying Australian Dollars? Buy Australian Dollars at the Best Australian Dollar Rates!
Contact IMS Foreign Exchange + 44 207 183 2790
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