European Hedge Funds Correspondent
Laurence's Feed
Dec 19, 2013

Dollar pares gains after Fed sweetens taper message

LONDON (Reuters) – The dollar struggled to gain ground on Thursday after the Federal Reserve surprised many analysts by announcing its long-awaited first cut in bond-buying but couched it by promising interest rates would stay low for longer.

A large majority of market watchers had expected the Fed to wait until next year before starting to reduce its stimulus for the economy but any impact on the dollar – which should in theory gain as a result – was tempered by the fact that much of the move had already been priced in by markets.

Dec 18, 2013

Sterling jumps after unemployment data beats forecasts

LONDON, Dec 18 (Reuters) – Sterling jumped against the
dollar and euro on Wednesday after UK unemployment fell by more
than expected, raising expectations that interest rates could
rise earlier than previously forecast.

In minutes of its latest meeting, the Bank of England
expressed concern that a strong pound could hurt Britain’s
economic recovery.

Dec 17, 2013

Euro slips as investors cut risk before Fed decision

LONDON, Dec 17 (Reuters) – The euro failed to hold onto
gains after an upbeat German sentiment survey as investors cut
risk ahead of this week’s key decision on bond-buying by the
U.S. Federal Reserve.

The euro, which reached a six-week high against the dollar
last week, gave back earlier gains to trade 0.1 percent
lower at $1.3752.

Dec 17, 2013

Euro firms as liquidity tightens; eyes on ZEW, Fed

LONDON, Dec 17 (Reuters) – The euro rose against the dollar
on Tuesday as investors anticipated an improved reading in
German economic sentiment while uncertainty about a Federal
Reserve decision on bond-buying kept the dollar in tight ranges.

A firmer reading from the German ZEW economic sentiment
survey, due at 1000 GMT, will likely support the euro, while a
lower-than-forecast number could see it give up recent gains
. On Monday a German PMI survey beat expectations.

Dec 16, 2013

Sterling ends losing streak versus dollar before key data

LONDON, Dec 16 (Reuters) – Sterling rose against the dollar
on Monday after three straight days of losses, as investors
positioned themselves for a week of UK data that will test the
pound’s ability to hold onto its gains since the summer.

The pound rose 0.1 percent against the dollar to
$1.6306. After rallying to just below $1.65 on Wednesday, the
pound fell back to a two-week low of $1.6263 on Friday as
investors locked in profits.

Dec 16, 2013

Sterling ends three-day losing streak against dollar

LONDON, Dec 16 (Reuters) – Sterling rebounded against the
dollar on Monday after three days of losses, as investors
positioned themselves for a week of UK data that will test the
pound’s ability to hold onto its gains since the summer.

The pound rose 0.1 percent against the dollar to
$1.6310. After rallying to just below $1.65 on Wednesday, the
pound fell back to a two-week low of $1.6263 on Friday as
investors locked in profits.

Dec 13, 2013

Dollar, euro, Swiss franc hit multi-year highs vs yen

LONDON (Reuters) – The dollar and euro rose to five-year highs against the yen on Friday, driven by upbeat U.S. data ahead of the Federal Reserve’s meeting next week and dwindling excess cash in the euro zone banking system.

The yen also slumped to a three-decade low against the Swiss franc, with some attributing the broad-based decline to a resumption of its role as a conduit for carry trades given the Japanese central bank’s continued commitment to an ultra-easy monetary policy.

Dec 12, 2013

Sterling down for second day ahead of key data week

LONDON, Dec 12 (Reuters) – Sterling reversed early gains to
trade lower against a stronger dollar on Thursday as investors
positioned their portfolios for critical data next week.

The pound was down 0.3 percent against the dollar
at $1.6329 in its second day of losses. It had earlier risen as
high as $1.6418, not far from the two-year high of $1.6468 it
had hit earlier this week.

Dec 12, 2013

Growth expectations help sterling rebound, key data next week

LONDON, Dec 12 (Reuters) – Sterling rose on Thursday as
investors took heart from recent positive data including upbeat
forecasts from a business group, reinforcing the view that
Britain’s recovery is taking hold ahead of key numbers next
week.

Recovering from Wednesday’s falls, the pound rose 0.3
percent against the dollar in thin volumes to $1.6414,
edging back towards the two-year high of $1.6468 it hit earlier
this week.

Dec 11, 2013

Euro edges higher as liquidity tightens, yen gains

LONDON, Dec 11 (Reuters) – The euro inched higher against
the dollar on Wednesday, driven by dwindling excess cash in the
euro zone banking system, but fell against the yen as investors
locked in profits from this year’s rally.

The euro was up 0.1 percent against the dollar at
$1.3767, not far from the six-week high of $1.3795 it hit on
Tuesday. It was 0.2 percent down against the yen at 141.15 yen
but up 23 percent this year.