I think the Cable might be influenced to the extent when the Euro is under pressure against the Dollar, it would tend to pull Sterling down with it.
At the moment we see some Dollar weakness against G10 currencies, or more specifically against the Euro and other commodity currencies.
It was surprisingly discouraging that EUR/USD did not react more positively on the Greek elections results.
Some experts proposed an outside-the-box solution to the Eurozone debt crisis with Germany, being highly competitive, leaving Eurozone.
By channelling funds from savers to borrowers, a financial system plays a vital role in an economy's growth process.
Currently the trend is definitely worsening with a continuing rise of unemployment.
We do not except the prices to consolidate over here, and we do not naturally think price will go up sustainably, because the macro environment has a lot of question marks.
We have seen quite strong swings in the Aussie, because over the past couple of weeks risk aversion has weighed heavily on the Australian Dollar.
India's international trade performance has dwindled in recent past, partially due to the world economy turmoil, and equally due to domestically retrograde policies.
We do not think so, because the sentiment is not that negative.
Recently the Sterling has not performed particularly well against the Dollar, but it has been perceived as safe haven against the Euro
The strongest contagion channel is the oil price, as well as potentially intensified capital outflow.
I think 80 is a comfortable level for USD/JPY at the moment.
The Euro is very weak at the moment. All the concerns about possible Greek exit from the Eurozone are hurting the single currency.
I think currently Japan's economy is not stable; therefore there is no reason to buy the Yen for the time being.
I think the market had been waiting for this weakening for some time.
Actually, there are two possible ways.
If Greece leaves the Eurozone, then most of the consequences are likely going to happen to the country itself.
The Australian economy fared reasonably well during the 2008-2009 global financial crisis, primarily because the Reserve Bank quickly lowered interest rates and allowed a massive exchange rate depreciation, which shielded the economy from falling commodity prices.
Since the basic model of macroeconomic policy in the Eurozone is deflationary, sluggish growth in the Euro bloc continues.
Yes, we do expect this downward trend to continue, due to the unfavourable macroeconomic situation in the Eurozone.
We expect the US Dollar to come under pressure in the month ahead.
We did not actually expect 50 basis points cut. Our forecasting was 25 basis points and then further 25 points at the beginning of June. We expect the forecast of 100 basis points total cuts in this cycle. That forecast was made in July of the last year. Essentially, with the two rate cuts that we had late last year
I believe that the size of the additional asset purchase programme is not large enough to nearly cause depreciation of the Yen.