The British Pound Is Tumbling

SAM RO

AUG. 13, 2014

Bloomberg.com

The British pound spiked briefly before tumbling.

The currency is currently trading at $1.6721, 0.5% for the day.

The moves came after the Bank of England published its latest inflation report.

“Mark Carney said global political risks and the euro region’s weakness might weigh on Britain’s recovery as he insisted that the Bank of England won’t raise interest rates too soon or too fast,” reported Bloomberg’s Scott Hamilton.

The Euro Is Tumbling

SAM RO

 AUG. 12, 2014

The euro is sinking following a horrible German investor confidence report.

It’s currently at $1.3343, down 0.3% for the day.

Germany’s ZEW investor confidence survey index plunged to 44.3 in August from 61.8 a month ago. This was much worse than the 54.0 expected by economists.

To make things worse, the expectations index crashed to 8.6 from 27.1. This was the lowest reading since December 2012. Economists were expecting 17.0.

“In one line: Grim, as slump in investor sentiment deepens,” said Pantheon Economics’ Claus Vistesen.

On Thursday, we’ll get our first estimate of Germany’s Q2 GDP. Economists estimate it contracted by 0.1% quarter-over-quarter.

Bloomberg.com