U.K. Pound Declines Against Euro After BBA Home Loans Report
The U.K. pound fell against the euro after a British Bankers' Association report showed mortgage approvals slid last month to the lowest level since at least 1997.
The currency also dropped against the U.S. dollar as traders trimmed bets the Bank of England will raise interest rates to curb inflation amid slowing economic growth. Expansion will be ``much slower'' over the coming year, Andrew Sentance, a member of the central bank's Monetary Policy Committee, wrote in a newspaper article published yesterday.
"The BBA report reinforces the sense that the whole housing market has ground to a standstill,'' said Daragh Maher, a London- based currency strategist at Calyon, the investment-banking arm of Credit Agricole SA, France's third-biggest lender by market value. ``This is clearly negative for sterling.''
The pound fell 0.3 percent to 79.19 pence per euro by 12:18 p.m. in London, from 78.95 yesterday. It also dropped to $1.9641, from $1.9643, from $1.9654.
Banks granted 27,968 loans for house purchase, down 56 percent from a year earlier, the London-based BBA, which represents the U.K.'s biggest lenders, said today in a statement. The number is down 20 percent from April.
Property values may fall 9 percent this year as banks increase the cost of mortgages following the global credit crunch, HBOS Plc said last week. Bank of England Governor Mervyn King has said that a weaker housing market will go ``hand in hand'' with a slowdown in consumer spending and economic expansion.
The yield on the two-year note fell 3 basis points to 5.31 percent. The price of the 4.75 percent security due June 2010 rose 0.05, or 50 pence per 1,000-pound ($1,964) face amount, to 98.97.
The 10-year gilt's yield slipped 1 basis point to 5.14 percent. Yields move inversely to bond prices. A basis point is 0.01 percentage point.
The U.K. sold 650 million pounds of 0.75 percent index-linked bonds today. The securities mature in November 2047.
The U.K. pound fell against the euro after a British Bankers' Association report showed mortgage approvals slid last month to the lowest level since at least 1997.
The currency also dropped against the U.S. dollar as traders trimmed bets the Bank of England will raise interest rates to curb inflation amid slowing economic growth. Expansion will be ``much slower'' over the coming year, Andrew Sentance, a member of the central bank's Monetary Policy Committee, wrote in a newspaper article published yesterday.
"The BBA report reinforces the sense that the whole housing market has ground to a standstill,'' said Daragh Maher, a London- based currency strategist at Calyon, the investment-banking arm of Credit Agricole SA, France's third-biggest lender by market value. ``This is clearly negative for sterling.''
The pound fell 0.3 percent to 79.19 pence per euro by 12:18 p.m. in London, from 78.95 yesterday. It also dropped to $1.9641, from $1.9643, from $1.9654.
Banks granted 27,968 loans for house purchase, down 56 percent from a year earlier, the London-based BBA, which represents the U.K.'s biggest lenders, said today in a statement. The number is down 20 percent from April.
Property values may fall 9 percent this year as banks increase the cost of mortgages following the global credit crunch, HBOS Plc said last week. Bank of England Governor Mervyn King has said that a weaker housing market will go ``hand in hand'' with a slowdown in consumer spending and economic expansion.
The yield on the two-year note fell 3 basis points to 5.31 percent. The price of the 4.75 percent security due June 2010 rose 0.05, or 50 pence per 1,000-pound ($1,964) face amount, to 98.97.
The 10-year gilt's yield slipped 1 basis point to 5.14 percent. Yields move inversely to bond prices. A basis point is 0.01 percentage point.
The U.K. sold 650 million pounds of 0.75 percent index-linked bonds today. The securities mature in November 2047.
AUD/USD rises above 0.9560, so my trade is closed. Realised profit is US$320.
My trade was stopped out today at 0.7890. My realised loss is US$461.02.
Yesterday I had shorted 1 lot of supermini oil at $137.10.
Today I took profit before oil inventory data at $135.81.
Realised profit is US$129.
answer is in my website.
Japanese shares advanced, helping the Nikkei 225 Stock Average snap its longest losing streak this year. Insurers and drugmakers led gains as investors bought companies whose earnings are less affected by slower global growth.
The Nikkei 225 rose 114.74, or 0.8 percent, to 13,944.66 as of 12:50 p.m. in Tokyo, reversing five days of decline. The broader Topix index added 10.96, or 0.8 percent, to 1,357.04, with more than three stocks advancing for every two that fell.
Bought 1 lot of Nikkei CME Sept at 13835
Place a GTC stop at 13700
Target level at 14315
Value of 1 point = US$5
The Nikkei 225 rose 114.74, or 0.8 percent, to 13,944.66 as of 12:50 p.m. in Tokyo, reversing five days of decline. The broader Topix index added 10.96, or 0.8 percent, to 1,357.04, with more than three stocks advancing for every two that fell.
Bought 1 lot of Nikkei CME Sept at 13835
Place a GTC stop at 13700
Target level at 14315
Value of 1 point = US$5
My equity in my account is now US$8102.76, I had opened the account with US$5000, so my account is still up 62% this year.
This week is a frustrating week for me and my readers (who had followed my trades). We had bought EURGBP and NZDUSD on 2 occassions based on buy signal from my indicators, both positions were stopped out, after that they rebounded sharply up.
But the encouraging thing is that my indicator has continued to proven that it is accurate and reliable, as the currency pairs eventually move according to its signals.
To counter the above problem, I may reduce my forex contract size from 100,000 to 50,000, so I can afford to place a stop further away.
I had lost 2 trades on my oil trading. Some readers question me about my indicator for oil trading. Actually that is a punt, seeing oil trading within the range of $131 to $139, its logic to sell at the resistance and buy at the support level. However oil has broken out of the range this week.
I try to keep to my rule on oil trading: Never short oil.
This week is a frustrating week for me and my readers (who had followed my trades). We had bought EURGBP and NZDUSD on 2 occassions based on buy signal from my indicators, both positions were stopped out, after that they rebounded sharply up.
But the encouraging thing is that my indicator has continued to proven that it is accurate and reliable, as the currency pairs eventually move according to its signals.
To counter the above problem, I may reduce my forex contract size from 100,000 to 50,000, so I can afford to place a stop further away.
I had lost 2 trades on my oil trading. Some readers question me about my indicator for oil trading. Actually that is a punt, seeing oil trading within the range of $131 to $139, its logic to sell at the resistance and buy at the support level. However oil has broken out of the range this week.
I try to keep to my rule on oil trading: Never short oil.
No the oil trade is a cheap punt, no based on my model. I just profit from shorting EUR/JPY today.
Gold price goes below $922, so my position is closed off at a profit. Realised profit is US$1050.
