Exchange Rates UK - Compare Foreign Currency Exchange Rate & History

	GBP EUR		1.2445	Pounds to Euros
	GBP USD		1.6105	Pounds to Dollars
	GBP NZD		1.9573	Pounds to New Zealand Dollars
	GBP AUD		1.5525	Pounds to Australian Dollars
	GBP CAD		1.6055	Pounds to Canadian Dollars
	GBP JPY		128.26	Pounds to Yen
	GBP ZAR		13.919	Pounds to South African Rands
	GBP AED		5.9105	Pounds to Dirhams
	GBP INR		86.379	Pounds to Rupees
	GBP TRY		2.8996	Pounds to Lira
	GBP CHF		1.5051	Pounds to Swiss Francs

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Sat, Oct 27 2012

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Sat, Oct 27 2012, 21:15 GMT Metal Symbol PKR for 10 Gm PKR for 1 Tola PKR for 1 Ounce      Gold 24K XAU 52,680 61,381 163,857    Palladium XPD 18,409 21,449 57,259    Platinum XPT 47,575 55,433 147,978    Silver XAG 987 1,150 3,071

Gold Rates in other Major Currencies Currency Symbol 10 Gm 1 Tola 1 Ounce     Australian Dollar AUD 530 618 1,650   Canadian Dollar CAD 549 640 1,707   Euro EUR 425 495 1,322   Japanese Yen JPY 43,820 51,057 136,296   U.A.E Dirham AED 2,021 2,354 6,285   UK Pound Sterling GBP 342 398 1,063   US Dollar USD 550 641 1,711

OPEN MARKET FOREX RATES Updated at: 28/10/2012 12:43 AM (PST)

OPEN MARKET FOREX RATES
Updated at: 28/10/2012 12:43 AM (PST)

Currency	Buying	Selling
Australian Dollar 97.5 98.7  Bahrain Dinar 251 253  Canadian Dollar 95 96.5  China Yuan 13 13.5  Danish Krone 16.6 16.85  Euro 123 124.3  Hong Kong Dollar 11 11.7  Indian Rupee 1.65 1.75  Japanese Yen 1.19 1.2  Kuwaiti Dinar 332.8 335  Malaysian Ringgit 28.1 28.6  NewZealand $ 74.6 75.6  Norwegians Krone 16.5 16.8  Omani Riyal 245 247  Qatari Riyal 25.5 25.6  Saudi Riyal 25.05 25.35  Singapore Dollar 77 78.2  Swedish Korona 13 13.5  Swiss Franc 99 100  Thai Bhat 2.6 2.7  U.A.E Dirham 25.8 26.1  UK Pound Sterling 151.5 152.8  US Dollar 95.1 95.4

TECHNICAL UPDATE: Latest on EUR/NZD – Tested trendline support Updated Oct 26, 2012

TECHNICAL UPDATE: Latest on EUR/NZD – Tested trendline support

Updated  Oct 26, 2012 4:45:00 PM Written by Chris Tevere, CMT

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EUR/NZD continued to move lower over the past 24-hours and tested trendline support, drawn from the August low, around 1.5695. Furthermore, daily RSI appears to have broken below corresponding trendline support. Currently, the pair is trading around the 50-day sma (1.5725), but a move towards the daily Ichimoku Cloud Top, as well as 38.2% retracement between 1.5440/50  seems plausible early next week. This would also likely complete the 5-wave move lower – see original hourly chart (in yellow) below, of the Elliot Wave count and a 3-wave correction may follow thereafter.

Chart Source: Forex Charts by eSignal

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TECHNICAL UPDATE: EUR/NZD – Failure above 1.60 sets stage for sub-1.55
Updated Oct 25, 2012 6:15:00 PM
EUR/NZD has begun to show the downward acceleration that I was looking for 10 days ago – See TECHNICAL UPDATE. Ultimately, very little has changed from a technical perspective, however it appears the shorter-term (hourly) and longer-term (daily) time frames have aligned. Moreover, we have identified 3 different points of reference to potentially trade against – 1.5895 (13 & 200-day sma’s), 1.5905/10 (October 19^th low) & 1.6060 (October 16^th high).
That said, here’s a few technical bullets on why I believe EUR/NZD downside could prevail:

• Saw a daily RSI bearish divergence into the 1.6055/60 high
• Continued to get rebuffed by the 50% retracement
• 13-day sma is crossing in-between daily 144 & 169 EMA’s while price is below (bearish)
• Sees hourly RSI bullish divergence (see yellow highlight)
• Elliot Wave Count in the midst of wave-4 up
• EW Count invalid if above 1.5910 (wave-1 low) as well as 61.8% retracement
• Watch for potential daily RSI trendline break in advance to price (leading indicator)
• Prior October low resides near 1.5470
• Bottom of daily Ichimoku Cloud is 1.5435/40

Chart Source: Forex Charts by eSignal

London Session: All eyes on USDJPY and the BOJ Updated Oct 26, 2012

London Session: All eyes on USDJPY and the BOJ

Updated  Oct 26, 2012 5:00:00 AM Written by Kathleen Brooks

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The biggest news overnight was from the Japan – the government announced a surprise stimulus package to try and boost the flagging economy. The overall size of the stimulus is miniscule compared with stimulus programmes elsewhere, at only $10 billion; however the timing of the move is significant. With Japan’s government in deadlock and facing its own fiscal cliff, lawmakers have very little rope to work with. Financial legislation to increase the borrowing limit has been blocked by the opposition to try and force fresh elections (the umpteenth in recent years). If no agreement is reached then Japan, the world’s largest debtor, could go over the fiscal cliff edge at the end of November. The money for this stimulus has been found from other budgets, but it is unlikely that more cash will be found. This leaves the BOJ as the only entity in Japan with the tools to kick-start the economy. For an export-based economy like Japan the best way for them to do this is to try and weaken the yen. As rates are already at 0.1%, we expect the Bank to boost its Asset Purchase Programme. The market is looking for an increase of JPY 10 trillion, however we believe there is a good chance it could do more than this – potentially to the tune of JPY 20 trillion – to try and weaken the currency.
Japan’s very own cliff edge
The extent of the crisis in Japan has prompted major banks (and dealers of government debt) to hold a meeting this morning to try and press the government to pass the Budget bill (and thus avoid a fiscal cliff) saying that Japan faces a real risk of a credit rating downgrade if the deadlock persists. This suggests that the next month could be crucial for Japan and we may see further downward pressure on the yen as fiscal and political problems (a toxic mix) erode the yen’s status as a safe haven.
The BOJ may target the exchange rate next week
Because the problems facing Japan’s economy are largely external – the territorial dispute with China and the Eurozone sovereign debt crisis – which are both dampening demand in Japan’s largest trade partners, targeting the exchange rate could be the best way to boost the economy. Thus, an aggressive round of asset purchases from the BOJ next week may be the enough to get USDJPY above the 80.00 resistance level. We have flirted with life above this level in the last couple of days but it has proven to be a tough hurdle to get over. After the announcement of the government stimulus programme USDJPY jumped as high as 80.35, however it has since drifted back below 80.00 as the market realised that the amount of stimulus is fairly minimal. However, expectation that the BOJ may now be forced to act in an aggressive way next week could be enough to get a weekly close above 80.00. This would be a very bullish signal for this pair.
We are currently inside the weekly cloud on this chart, which leaves 81.10 as the next major resistance level to get over. Above this level suggests a new paradigm for USDJPY and supports a medium-to-long term uptrend.
One to Watch: USDJPY weekly Ichimoku cloud chart

Source: Forex.com
Is France a bigger risk than Spain?
Elsewhere, Europe is taking a back seat, although problems in the currency bloc remain far from over. Spain till has not applied for a bailout even through the growth picture remains as weak as ever. Spanish unemployment hit 25.02% in Q3. This is depression-era levels, highlighting the extent of economic weakness in Spain, which could make it even harder to reach deficit targets in the coming years. This rounds off a very poor week of economic data for the currency bloc, with signs that France is falling away from the core economic pack and joining the peripheral economies. French bond yields have moved higher this week, but they still remain at extremely low levels. The market isn’t focusing on France yet, but it might. Weak growth combined with a government who does not want to deal with restoring public finances to a more stable footing could hurt the French bond market in the long-term, which would mark the most serious development in the sovereign debt crisis. Rating agency S& downgraded some large French banks last night citing increased economic risks – this is a warning sign to France and to investors in its bond market.
Watching the Nasdaq
Ahead today is US GDP for the third quarter at 1330 BST. The market expects a pick up to 1.8% from 1.3% in Q2. If the consensus is correct this would mark the second consecutive sub-2% growth rate in the US economy since 2009. A wave of weak economic earnings, including from tech giant Apple, continues to weigh on stocks. Equity bulls have to hope this was a blip and big consumer companies like Apple can make it up during the holiday spending season and QE3 liquidity will come to the rescue. These hopes are helping to support stocks. Although equities have been selling off they have not fallen below key support levels. Watch the Nasdaq, the US tech sector index, closely as it is testing its 200-day sma support. Below here could signal a broad based decline in US equity markets.
NAS 100:

The Week Ahead--Week of October 28th, 2012 Updated Oct 26, 2012

The Week Ahead--Week of October 28th, 2012

Updated  Oct 26, 2012 1:00:00 PM Written by Kathleen Brooks and Eric Viloria CMT

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Highlights

• The risk trade softens
• Will the Eurozone crisis flare up before year end?
• QE - down but not out for the UK
• Bank of Japan under pressure to ease
• US employment data in focus

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The risk trade softens

Stock markets declined last week, commodities fell and Spanish bond yields rose last week as sentiment drained from the market. The key drivers of lower markets were weak economic data out of Europe, strong data out of the US which threatens to cut QE3 short and weak Q3 corporate earnings.
The S&P 500 has seen 30% of companies that have reported so far miss earnings estimates. The sales miss has been worse, with only 40% of companies meeting expectations or exceeding them. There have been some notable misses for the tech sector including Apple, Google, Intel and Microsoft. Other industries that have been under pressure include the mining and resource sector and utilities. Since the tech sector is considered a lead economic indicator the decline in Q3 earnings could precede a sharper slowdown in the broader economy. The Nasdaq 100 index is testing a key support level at 2,655, the 200-day sma, below here opens the way for a steeper decline to back to the May lows. If it breaks below here then it may signal broader declines in global equity markets.
So as we start a new week risk assets look vulnerable to a further decline. It doesn’t look like Spain is in any hurry to apply for a bailout (see the European section for more), European data is likely to remain fairly weak for some time and as we enter the last full week of trading before the US Presidential election nervousness is starting to build about the Fiscal cliff. The US is not the only one edging towards the cliff edge, Japan is too. It is facing a political standoff over its budget, which could cause the world’s largest debtor to run into financial trouble as soon as the end of November (see the Japan section for more).

Figure 1: The Vix index – this is considered Wall Street’s fear gauge. It has started to edge higher in recent weeks. Upcoming event risks could see this index pop above 20 – the August high.

Source: Forex.com and Bloomberg

Will the Eurozone crisis flare up before year end?

The sovereign debt crisis seems to have lost some of its potency to rattle financial markets in recent months. Since ECB President Draghi said the Bank would do whatever it takes to save the Eurozone at the end of July, Spanish bond yields continue to fall. Even after rising last week they still closed the week below 5.6% and remain well below the 7% line in the sand. The recovery in the bond market seems all the more impressive since the ECB’s bond-buying OMT programme has not yet been activated and Spain’s economy has deteriorated further, the unemployment rate rose to more than 25% in the third quarter.
So is the market due a panic? There are lots of things to panic about, not least the deteriorating growth picture across the currency bloc and not just in Spain. Added to that Greece has still not managed to secure its next EU30bn tranche of bailout funds. The Greek parliament will vote on required fiscal measures that are needed to get the bailout funds next week; however this vote is expected to pass easily. There are rumours that Greece’s centre-right government has a better relationship with Brussels, and thus may be able to secure better bailout conditions – for example lower interest rates and a longer debt repayment schedule. Added to this, Spain has issued most of its debt for this year already, which means it is unlikely to see a sustained attack on its bond market before year end.
This reduces the chance of a full-scale panic in our view. Germany’s stance could also help calm the markets. Berlin seems to be willing to give concessions to Greece and Ireland to keep the currency bloc together, likewise, relations between Berlin and the ECB seem to have recovered. After a split over the OMT programme (the Bundesbank were against) the fact it hasn’t been activated has placated Germany’s central bank. Added to that Draghi has been at pains to placate Germany and last week warned the German Parliament that the biggest risk was deflation and the inflation hawks on the Bundesbank had nothing to fear from the OMT programme. Eurozone inflation is expected to have declined to 2.5% this month from 2.7% in September when it is released this week.
Thus, it appears that the political side of the sovereign debt crisis could remain stable for some time. The bigger risk in our view is the economy. This is deteriorating rapidly. Recent PMI surveys saw the French readings drop away from the core economies and start to resemble the periphery. This is extremely concerning, as France is the second largest economy in the currency bloc and one of its main paymasters along with Germany. In Spain more than a quarter of people are unemployed, which is likely to weigh on the Eurozone unemployment figure released next week. This is expected to reach another record high of 11.4% for September.  Added to that Spain releases its Q3 GDP report next week and the market expects a 0.4% decline after receiving guidance from the Bank of Spain. German data including employment and retail sales will also be scrutinised to see if they suggest further weakness in the currency bloc’s largest economy.
The sell-off in the euro last week coincided with weak PMI data from the Eurozone, thus further declines in economic data could cause more pressure on the single currency.  EURUSD closed the European session last week above 1.29, safely above a key support zone between the top of the daily Ichimoku cloud at 1.2950 and 1.2980 – the 200-day sma. Below here would suggest a more prolonged downtrend for this cross. If the data next week is truly horrible then we expect a sharp fall to 1.2800 and then 1.2750 – the low from the middle of September - in the short term.

Figure 2: EURUSD daily chart

Source: Forex.com

QE – down but not out for the UK

Those looking for more QE from the Bank of England when it meets next month were dealt a blow last week when Q3 GDP data rose 1%, taking the UK out of recession in style. The data was boosted by an extra working day compared with Q2 and also Olympic and Paralympic ticket sales, both temporary factors. Although the exact impact of these events on growth is still unknown, it is likely that the underlying rate of growth last quarter was around 0.3-0.4%. This is better than the first half of the year but it remains moderate and does not guarantee that the UK’s economy is out of the woods yet, especially since our largest trading partner, the Eurozone, remains mired in recession.
There is a lot of uncertainty surrounding the outlook for the UK economy. Although the industrial sector saw a healthy gain in the third quarter, its performance may have slowed at the start of Q4 after the CBI industrial trends survey fell to its lowest level for two years. Thus, next week’s October PMI surveys are going to be crucial to the QE decision at the next BOE meeting on 8^th November. The market expects a decline to 48.0 for the manufacturing survey from 48.4 in September. If the market is correct then it reverses better data over the third quarter and suggests growth may already be slowing and the UK economy could be on course for a triple-dip.
The Governor of the Bank of England Mervyn King was speaking last week and he left the door open to more QE. However, King is a noted dove and we know from the minutes of the September meeting that there is a split between some members wanting more stimuli and some preferring to stay on hold. Thus, the decision next month will likely be a close call.
The pound was volatile last week but GBPUSD ended the week higher after receiving a boost from the GDP data. This pair is likely to remain range bound for the short-term between 1.5800 and 1.6150. It is also sensitive to overall market risk, so if we see market sentiment continue to drain then we may test the top of the daily cloud at 1.6065 – a key support zone. Below here is the end of a technical uptrend and suggests further losses back to 1.5850 – the bottom of the daily cloud. GBPAUD seems more constructive especially as the RBA maintains its dovish outlook. If the UK PMI data surprises on the upside next week then we may see this cross move back above 1.5600 towards the 1.5800 highs from earlier this month as it would increase the chances that the BOE will remain on hold next month.

Figure 3: GBPAUD daily chart

Source: Forex.com

Bank of Japan under pressure to ease

On October 30, the Bank of Japan will announce monetary policy as well as release its semiannual Outlook for Economic Activity and Prices. We anticipate that the report will show a reduction in inflation forecasts which underscores the fact that the BoJ is struggling to achieve its 1% inflation target. Expectations are that the Bank will miss this target as far out as 2014. Therefore, we expect the Bank to respond with more stimulus in the form of yet another increase to the Asset Purchase Program (APP). The APP currently stands at ¥80T and markets have been speculating increases of between ¥10-20T in additional purchases.
The economy may have fallen back into contraction in Q3 as incoming data has been weak. Consumer spending has declined, and exports dropped significantly. As Japan is heavily reliant on exports, measures taken by the Bank to weaken the yen would be beneficial on the margin. However, the strength of the currency is only one factor that is weighing on the export driven economy. Geopolitical tensions and slowing global growth as a result of increased uncertainties have reduced demand for Japanese exports. A drop in economic activity will weigh on prices which have been indicating deflation for some time. On Friday, Japan’s consumer price data showed national CPI falling by -0.3% y/y in September on the headline print while CPI excluding fresh food fell -0.1% y/y. More timely Tokyo price readings also showed deflation persisted in October.
The BoJ has been faced with increased pressure to ease further from the government. Economy Minister Maehara, who sat at the BoJ meeting earlier this month, said that he wants the Bank to pursue easing to achieve its price goal and also indicated that he may attend next week’s meeting.
The JPY was mostly softer earlier this past week after weak fundamental data and ahead of the BoJ meeting. Friday a reversal of yen weakness after the government proposed new fiscal stimulus and after better than expected CPI figures (however the numbers continued to show deflation as previously noted). With the potential for further easing from the BoJ, there is scope for JPY weakness heading into the meeting and even a knee jerk reaction lower in the yen following the announcement should the Bank take on additional measures. In the long run, we would prefer to fade yen weakness as increases to the Bank’s APP have not had lasting impacts on the exchange rate.
In fact, at the September 19 meeting when the BoJ last expanded stimulus by ¥10T, USD/JPY actually declined on the session. The Bank not only increased the amount of purchases then but also the length of the program which resulted in a slower pace of buying. It is likely that the Bank may make adjustments to the program to take a more aggressive stance to providing monetary easing.
The 200-day simple moving average (SMA) remains the key pivot and is currently acting as support. The daily Tenkan line also converges with the 200-day SMA around the 79.50 level. A break below here is likely to see USD/JPY move back towards the bottom end of its recent range. To the upside, the 80.50 level is key resistance and a close above is needed for gains to extend. While BoJ action may result in short term yen weakness, we doubt that USD/JPY upside can last without support from higher US treasury yields.

Figure 4: Japan continues to struggle with deflation

Source: Bloomberg

US employment data in focus

Next week indicators of US employment in October are due for release. As usual, the first Friday of the month will see the Bureau of Labor Statistics (BLS) monthly employment report which tends to have a large impact on markets. The private ADP report which is due out on Thursday may take on more importance as new enhancements have been made. As indicated by ADP, the report has been enhanced “to further align with the final, revised US BLS numbers. A look back at historical data from 2001 to present using the new methodology shows a very strong correlation (96%) with revised BLS numbers.”
So what is different with the report? ADP now uses a larger sample size of 406K companies (prev. 344K) and 23 million employees (prev. 21M) which accounts for more than 20% of all US private sector employees. Expectations are for ADP to show a gain of 135K payrolls in October from the prior 162K while the BLS is anticipated to show a headline change of 120K jobs from the prior 114K. After experiencing a decline of 0.5% in the past 2 months, the unemployment rate is expected to correct slightly higher to 7.9%.
In our view, prints in the low to mid-100K range are lackluster and not likely to inspire a significant improvement in risk sentiment. Furthermore, readings in the previously mentioned range are unlikely to cause the Fed to change course in its current easing program.

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FOREX-Euro

FOREX-Euro falls as concerns over Greece flare up

26 October, 2012 - Reuters

(Recasts, updates prices, adds quote)

Euro falls broadly, traders cite Greece uncertainty

Dollar retreats after hitting 4-month high vs yen

U.S. third-quarter GDP due 1230 GMT

By Anooja Debnath
LONDON, Oct 26 (Reuters) - The euro hit a two-week low against the dollar and fell against the yen on Friday, with traders citing concerns that Greece may miss its austerity targets and political uncertainty in Athens.
A report from the International Monetary Fund said Greek debt would be above the target agreed with international lenders, while the Greek government said a deal on Athens' latest austerity package was being held up by opposition from a coalition ally.
The euro fell 0.3 percent to $1.2893 , retreating from its Oct. 17 high of $1.3140. It also dropped 1 percent against the safe haven yen to 102.725 yen , a 10-day low.
The outlook for the euro was also clouded by uncertainty about when Spain will request a bailout that could trigger the European Central Bank's bond-buying programme.
"People are still concerned about Spain asking for a bailout and Greece remains a problem too. I remain bearish on the euro," said Lutz Karpowitz, FX strategist at Commerzbank.
The euro has struggled this week on grim economic data and fresh signs that the region's powerhouse, Germany, is struggling.
Traders said the single currency was likely to be caught in a $1.2800/1.3200 range until Spain asks for aid. Offers were cited around $1.2960 and above $1.3000.
Options market activity also suggested the euro was likely to stay in a range against the dollar in the near term. One-month implied volatility was at 8.05 vols, near levels last seen in late 2007.
YEN SEEN VULNERABLE
The yen recouped losses against the dollar after touching a four-month low, although it looked vulnerable to expectations of policy easing by the Bank of Japan on Oct. 30.
The dollar was down 0.6 percent at 79.77 yen after earlier hitting 80.38 yen. Some investors booked profits on long dollar positions before the advance reading of U.S. third-quarter gross domestic product, due at 1230 GMT.
A robust GDP reading could see the dollar touch its June peak of 80.63 yen with the April peak of 81.78 a possible target, while a disappointing number could see the dollar pull back.
Some strategists said a weekly close above 80 yen would be a strong bullish signal that may prompt further dollar demand.
The greenback was set to end the week higher, adding to last week's rise of 1.1 percent and helped by widening spreads between two-year U.S. Treasuries and Japanese government bond yields, with which the dollar/yen has a strong correlation.
"Dollar/yen has risen well ahead of itself in the past few weeks and while on a multi-month basis we expect it to rise, there will be some profit taking in the short term to smoothen out the move," said George Saravelos, G10 FX strategist at Deutsche Bank.
The BOJ is expected to ease monetary policy at its meeting on Tuesday by expanding asset purchases, and it could make a stronger commitment to keep pumping cash until its 1 percent inflation target is attained.
Japanese inflation data reinforced expectations the BOJ will ease, with core consumer prices falling for the fifth successive month in the year to September.
The higher-yielding Australian dollar dipped 0.15 percent to $1.0329 as stock markets fell, off the week's high of $1.0397 hit on Thursday.
(Additional reporting by Anirban Nag; Editing by Susan Fenton)

Copyright Thomson Reuters 2012. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Pound hits 3-week high versus euro as QE chances lowered 26 October, 2012

Pound hits 3-week high versus euro as QE chances lowered

26 October, 2012 - Reuters

• Sterling hits three-week high vs euro
• But vulnerable vs dollar as weak equities weigh on risk
• Strong Q3 GDP data reduces expectations for QE in Nov
• Trade-weighted pound at 3-week peak

By Philip Baillie
LONDON, Oct 26 (Reuters) - Sterling hit a three-week high against the euro on Friday when investors trimmed their bets on more monetary easing after unexpectedly strong UK growth figures the previous day.
The euro fell to a three-week low of 80.02 pence, dented by political uncertainty in Greece and concerns over whether it will receive further funding from international lenders.
This added to worries about recent weak euro zone activity data and over when Spain may ask for a bailout.
"This week seems to be the balance of data. The weakness of the UK has held up against the weaknesses in the European reports which has pushed the euro lower against the pound," said Steve Barrow head of G10 currency at Standard Bank.
Traders reported demand to buy the euro around 80 pence which may stem its losses. More falls could see the euro drop towards the 55-day moving average around 79.93 pence and the Oct. 2 low of 79.79 pence.
Momentum was with the pound rather than the euro, Standard Bank's Barrow said, adding he expected the euro to drop to 75 pence in the long term as the European Central Bank is more likely to ease monetary policy than the Bank of England after data showed the UK grew more than forecast in the third quarter.
Sterling's gains against the euro also pushed its trade weighted index to a three-week high at 84.2, BoE data showed.
But against the dollar, the pound edged away from a one-week high hit on Thursday as poor U.S. corporate earnings hit shares. That dented investors' appetite to buy riskier currencies, including sterling, and prompted them to take profit on the pound's gains.
Sterling was down 0.05 percent against the dollar at $1.6110 , off a high of $1.6144 hit on Thursday.
"Today risk appetite is on a softer footing because of problems in the corporate sector, namely U.S. earnings, so we could see some profit taking (in sterling/dollar)," said Geoffrey Yu, currency strategist at UBS Warburg.
He added that U.S. third-quarter GDP figures due at 1230 GMT could also boost the dollar if they come in on the strong side.

LESS CHANCE OF QE
Figures on Thursday revealed the UK economy grew by 1.0 percent in the third quarter, well above forecasts and lifting Britain out of recession.
Since the data, UK money markets suggest expectations for more easing from the Bank of England have been pared back.

Analysts said the chances of the BoE opting for more quantitative easing (QE) next month have dimmed after the surprising rebound in the economy, making it more likely to be pushed back to the first quarter of 2013.
QE is seen as negative for a currency as it increases the supply in circulation and as investors trim their bets on more QE in November that will lift sterling.
This helped the pound rise broadly. It hit a 3-month high against the Swedish crown and a four-month high against the Canadian dollar
However, some analysts were cautious given the positive impact of the Olympic Games, which may have masked a weaker underlying economy and said the pound's gains may be limited.
Purchasing managers' surveys on UK manufacturing, construction and services sector activity for October, due early next month, will provide the first clear indication of whether the strong momentum continued in the fourth quarter.
(Editing by Ron Askew)

Copyright Thomson Reuters 2012. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Daily Forex Commentary 26 Oct 12 , US FOREX

Daily Forex Commentary

26 October 2012 - Markets are being driven by disappointing earnings posted in the U.S.

By Frederick Cheng

US Dollar vs Canadian Dollar

USD/CAD is higher in this back drop, having tested recent highs near the .9980 level overnight. As previously mentioned, significant resistance at .9990-1.0000 (where the 100 & 200 day moving averages reside) and the pivotal 1.0050 level should cap initial USD strength. A move above these levels will be deemed very bullish USD and would prompt a return to higher levels, targeting 1.0150-1.0275. I don’t believe we will see any impulsive moves to the top side as slow, grinding moves have been characteristic of recent market trends. The .9900-.9925 zone looks to be decent support for now.
We expect a range today of 0.9924 to 1.0000

Canadian Dollar vs Euro

An article in today’s FT about a possible Finnish exit from the euro is garnering some attention today but that is just white noise for the time being. The euro is, however, weaker this AM, as a steady stream of poor European data this week has taken its toll, topped off by Spanish unemployment still at a staggering 25% in this morning’s release.
We expect a range today of 1.2823 to 1.2903

Canadian Dollar vs British Pound, Australian Dollar and New Zealand Dollar

The Sterling is finishing this week strong as this week’s data paints a better outlook for UK’s growth outlook. GBP/CAD ran into resistance at 1.6075 which has capped the pair’s advance since June of this year. AUD/CAD continues to trade higher against the Loonie. The pair will trade with general market sentiment as there are no new data being released. Resistance and support comes in at 0.0268 and 1.0350. NZD/CAD is holding into this week’s gains. The pair is currently testing its resent high at 0.8185. A close above this level will open the doors for 0.8267 and 0.8402.
Data Releases
CAD: No data today
AUD: No data today
EUR: Gfk German Consumer Climate, Spanish Unemployment Rate
GBP: No data today
JPY: No data today
NZD: No data today
USD: Advance GDP q/q, Advance GDP Price Index q/q, Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations

UK Economy News Dents Gold in Pounds, Diwali "Could See Last Minute Rush" for Gold

UK Economy News Dents Gold in Pounds, Diwali "Could See Last Minute Rush" for Gold

By: Ben Traynor, BullionVault

London Gold Market Report

WHOLESALE gold bullion prices rallied to $1718 an ounce Thursday morning in London, less than 24 hours after dipping below the $1700 mark for the first time since the US Federal Reserve announced a third round of quantitative easing last month.

Gold in Sterling however ended the morning lower at £1068 per ounce, close to yesterday's seven-week low, as the Pound rallied after the release of better-than-expected UK economic growth data.

Silver bullion meantime hovered around $32.20 an ounce, roughly in line with where it started the week, with other commodities also broadly flat.

"Lower prices now seem to be attracting new buyers [for gold]," says today's Commodities Daily note from Commerzbank.

"India should come back to the market because Diwali is coming," added a dealer of physical gold bullion in Singapore this morning, speaking to newswire Reuters.

"We should be expecting a big volume of sales or a last minute rush before the celebration."

Here in the UK, the economy exited recession in the third quarter, growing by 1% in the three months to the end of September, according to the official preliminary GDP estimate published Thursday.

"In comparison to Q2, the latest quarter had one more working day and this will impact on the growth between the second and third quarters," the Office for National Statistics said.

"In addition...the latest GDP estimate was affected by the Olympics and Paralympics events in the third quarter."

"There's now a good chance the economy won't actually contract on average for this year," says Scotiabank analyst Alan Clarke.

"It'll probably be flat and in the context of monetary policy, it reinforces the case for the Bank of England to pause on QE."

"The [Bank of England's] Monetary Policy Committee will think long and hard before it decides whether or not to make further asset purchases," Bank governor Mervyn King said in a speech on Tuesday.

"At this stage, it is difficult to know whether some of the recent more positive [economic] signs will persist...but should those signs fade, the MPC does stand ready to inject more money into the economy."

King added however that "the Bank could not countenance any suggestion that we cancel our holdings of [UK government] gilts", an idea that Financial Services Authority chairman Adair Turner, a candidate to replace King next year, is reported to favor.

The Bank's current £375 billion asset purchase program is due to end next month.

The UK Statistics Authority meantime has said it will investigate whether any laws were breached when prime minister David Cameron, who received the latest GDP figures 24 hours before their release, told Parliament yesterday that "the good news will keep coming".

Over in the US, the Federal Open Market Committee "will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month," last night's FOMC statement said, "[in order to] support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate [of maximum employment and stable prices]."

The central banks of Brazil and Ukraine between them added just over 2 tonnes of gold bullion to their reserves last month, according to International Monetary Fund data published Thursday. This is the first reported gold buying by Brazil in four years.

Russia, Belarus and Kazakhstan, all three of which have added to gold reserves earlier in the year, made sales last month totaling just over four tonnes, the IMF says, while Venezuela, which repatriated most of its foreign-held gold last year, sold 3.7 tonnes.

Spot gold ended September up nearly 5%, in a month that saw Fed and European Central Bank both commit to open-ended asset purchases.

Germany's Bundesbank meantime withdrew two-thirds of its gold held in London over a decade ago when the Euro was launched, according to the Telegraph's Ambrose Evans-Pritchard, citing a confidential report compiled this week by German auditors.

Earlier this week it was reported that the Bundesbank is planning to ship gold back to Germany for inspection from the New York Fed, after federal auditors said it should regularly inspect its foreign-held gold bullion.

Ben Traynor

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben writes and presents BullionVault's weekly gold market summary on YouTube and can be found on Google+

(c) BullionVault 2012

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Fri, Oct 26 2012

Bullion Rates (Gold Prices) in Pakistan Rupee (PKR) As on Fri, Oct 26 2012, 21:15 GMT Metal Symbol PKR for 10 Gm PKR for 1 Tola PKR for 1 Ounce      Gold 24K XAU 52,737 61,448 164,034    Palladium XPD 18,402 21,442 57,238    Platinum XPT 47,634 55,502 148,162    Silver XAG 988 1,151 3,074

Gold Rates in other Major Currencies Currency Symbol 10 Gm 1 Tola 1 Ounce     Australian Dollar AUD 531 618 1,651   Canadian Dollar CAD 549 640 1,708   Euro EUR 425 496 1,323   Japanese Yen JPY 43,785 51,016 136,187   U.A.E Dirham AED 2,021 2,355 6,286   UK Pound Sterling GBP 342 398 1,063   US Dollar USD 550 641 1,711

London Session: All eyes on USDJPY and the BOJ Updated Oct 26, 2012

London Session: All eyes on USDJPY and the BOJ

Updated  Oct 26, 2012 5:00:00 AM Written by Kathleen Brooks

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The biggest news overnight was from the Japan – the government announced a surprise stimulus package to try and boost the flagging economy. The overall size of the stimulus is miniscule compared with stimulus programmes elsewhere, at only $10 billion; however the timing of the move is significant. With Japan’s government in deadlock and facing its own fiscal cliff, lawmakers have very little rope to work with. Financial legislation to increase the borrowing limit has been blocked by the opposition to try and force fresh elections (the umpteenth in recent years). If no agreement is reached then Japan, the world’s largest debtor, could go over the fiscal cliff edge at the end of November. The money for this stimulus has been found from other budgets, but it is unlikely that more cash will be found. This leaves the BOJ as the only entity in Japan with the tools to kick-start the economy. For an export-based economy like Japan the best way for them to do this is to try and weaken the yen. As rates are already at 0.1%, we expect the Bank to boost its Asset Purchase Programme. The market is looking for an increase of JPY 10 trillion, however we believe there is a good chance it could do more than this – potentially to the tune of JPY 20 trillion – to try and weaken the currency.
Japan’s very own cliff edge
The extent of the crisis in Japan has prompted major banks (and dealers of government debt) to hold a meeting this morning to try and press the government to pass the Budget bill (and thus avoid a fiscal cliff) saying that Japan faces a real risk of a credit rating downgrade if the deadlock persists. This suggests that the next month could be crucial for Japan and we may see further downward pressure on the yen as fiscal and political problems (a toxic mix) erode the yen’s status as a safe haven.
The BOJ may target the exchange rate next week
Because the problems facing Japan’s economy are largely external – the territorial dispute with China and the Eurozone sovereign debt crisis – which are both dampening demand in Japan’s largest trade partners, targeting the exchange rate could be the best way to boost the economy. Thus, an aggressive round of asset purchases from the BOJ next week may be the enough to get USDJPY above the 80.00 resistance level. We have flirted with life above this level in the last couple of days but it has proven to be a tough hurdle to get over. After the announcement of the government stimulus programme USDJPY jumped as high as 80.35, however it has since drifted back below 80.00 as the market realised that the amount of stimulus is fairly minimal. However, expectation that the BOJ may now be forced to act in an aggressive way next week could be enough to get a weekly close above 80.00. This would be a very bullish signal for this pair.
We are currently inside the weekly cloud on this chart, which leaves 81.10 as the next major resistance level to get over. Above this level suggests a new paradigm for USDJPY and supports a medium-to-long term uptrend.
One to Watch: USDJPY weekly Ichimoku cloud chart

Source: Forex.com
Is France a bigger risk than Spain?
Elsewhere, Europe is taking a back seat, although problems in the currency bloc remain far from over. Spain till has not applied for a bailout even through the growth picture remains as weak as ever. Spanish unemployment hit 25.02% in Q3. This is depression-era levels, highlighting the extent of economic weakness in Spain, which could make it even harder to reach deficit targets in the coming years. This rounds off a very poor week of economic data for the currency bloc, with signs that France is falling away from the core economic pack and joining the peripheral economies. French bond yields have moved higher this week, but they still remain at extremely low levels. The market isn’t focusing on France yet, but it might. Weak growth combined with a government who does not want to deal with restoring public finances to a more stable footing could hurt the French bond market in the long-term, which would mark the most serious development in the sovereign debt crisis. Rating agency S& downgraded some large French banks last night citing increased economic risks – this is a warning sign to France and to investors in its bond market.
Watching the Nasdaq
Ahead today is US GDP for the third quarter at 1330 BST. The market expects a pick up to 1.8% from 1.3% in Q2. If the consensus is correct this would mark the second consecutive sub-2% growth rate in the US economy since 2009. A wave of weak economic earnings, including from tech giant Apple, continues to weigh on stocks. Equity bulls have to hope this was a blip and big consumer companies like Apple can make it up during the holiday spending season and QE3 liquidity will come to the rescue. These hopes are helping to support stocks. Although equities have been selling off they have not fallen below key support levels. Watch the Nasdaq, the US tech sector index, closely as it is testing its 200-day sma support. Below here could signal a broad based decline in US equity markets.
NAS 100: