26 June 2009: UK bond yields and swaps fall

26 June 2009: UK bond yields and swaps fall

Momentum in the pound has faded somewhat this week
amid mixed economic data and Bank of England Governor
King’s concerns over the magnitude of the UK fiscal deficit. After recording a high on Monday (€1.1904), £/€ pulled back to close the week at 1.1738. £/$ traded the week in the 1.6210-1.6602 range, closing today at 1.6505.

Volatility levels continue to gradually fall in foreign exchange
as the USD remains stable and range-bound. This stability is shown in today’s close in the USD index, of 79.9, which is less than 0.2% away from the close 5 week’s ago. AUD/USD and NZD/USD are relatively unchanged on the week, reflecting the small movement across commodity prices. Crude oil fell by only 1.2% this week.

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