Separately, on the
fundamental analysis front, the International Monetary Fund (IMF), in its
Regional Economic Review for Asia and the
Pacific, released on Monday, has indicated that it expects the Australian
economy to grow at a below-trend rate this year and next. At the same time it
has actually upgraded its growth forecasts for New
Zealand , on the basis of the post earthquake
reconstruction of Christchurch ,
strengthening domestic demand and export growth.
Pound strength or dollar weakness?
The Pound Sterling against
the US dollar continues to move upward, as discussed in
yesterday’s commentary. This pair got a nice boost on the back of the
less-than-stellar US GDP figures that were released yesterday. These were no
doubt affected by the severe weather stateside during the quarter in question,
but they have consolidated the belief that rates in the US will remain
low for the foreseeable future, a fact once more reiterated by the FOMC after
its two-day meeting which concluded yesterday.
So is the rise of this pair
down to Sterling strength or US dollar
weakness, or perhaps a little of both?
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