Tuesday, May 15, 2012

Pound Gains, Threatens Economy of UK

The Great Britain pound rose today as the safe haven role of the currency helped it to profit from speculation that Greece may leave the eurozone. The strength of the sterling caused worries that it may hurt the UK economy.
The pound gains appeal as the Swiss franc loses it due to the euro-peg. Economists are worried, though, that a strong currency may harm efforts to bring the United Kingdom out of recession. Ian Stannard, the head of European currency strategy at Morgan Stanley, explained:

The U.K. economic backdrop may not be brilliant, but it’s enjoying a haven status because of the political uncertainty in the euro zone. The advantage of sterling over a traditional haven like the Swiss franc is that its asset market is more liquid. The downside is that the strength of the pound may backfire as it hurts exports.


GBP/USD rose from 1.6063 to 1.6072 and GBP/JPY went up from 128.49 to 128.70 as of 8:18 GMT today.

Pound Gains, Threatens Economy of UK

The Great Britain pound rose today as the safe haven role of the currency helped it to profit from speculation that Greece may leave the eurozone. The strength of the sterling caused worries that it may hurt the UK economy.
The pound gains appeal as the Swiss franc loses it due to the euro-peg. Economists are worried, though, that a strong currency may harm efforts to bring the United Kingdom out of recession. Ian Stannard, the head of European currency strategy at Morgan Stanley, explained:

The U.K. economic backdrop may not be brilliant, but it’s enjoying a haven status because of the political uncertainty in the euro zone. The advantage of sterling over a traditional haven like the Swiss franc is that its asset market is more liquid. The downside is that the strength of the pound may backfire as it hurts exports.


GBP/USD rose from 1.6063 to 1.6072 and GBP/JPY went up from 128.49 to 128.70 as of 8:18 GMT today.

GBP Falls vs. USD & JPY, Gains vs. EUR Over This Week

The Great Britain pound fell against the US dollar and the Japanese yen this week as growing concerns about the health of the UK economy reduced appeal of the currency. The sterling is still perceived as refuge from Europe’s crisis, therefore it gained versus the euro.

Britain’s economy has entered a recession, significantly hurting prospects for the sterling. The Bank of England refrained from expanding stimulus during its last policy meeting, but most economists agree that the country needs quantitative easing. The pound is supported by its status of a safe haven, but such role looks tenuous considering the economic condition of Britain. Anyway, the problems of Europe allowed added to Britain’s strength against commodity currencies of countries that depend on European demand for their exports.

The pound was drifting down against the greenback and the yen since the end of March and it extended this trend for this week. The euro rose on Friday, but that did not help the shared 17-nation currency to erase its losses versus the sterling. The Canadian dollar was more successful, ending the week almost flat after falling for six consecutive trading sessions.


GBP/USD slid from 1.6133 to 1.6070 and GBP/JPY fell from 128.78 to 128.43. EUR/GBP was down from 0.8062 to 0.8033, while during the week it has reached 0.7994 — the lowest since 2008. GBP/CAD climbed from 1.6067 to 1.6201, but retreated to 1.6076 by the weekend.

GBP Falls vs. USD & JPY, Gains vs. EUR Over This Week

The Great Britain pound fell against the US dollar and the Japanese yen this week as growing concerns about the health of the UK economy reduced appeal of the currency. The sterling is still perceived as refuge from Europe’s crisis, therefore it gained versus the euro.

Britain’s economy has entered a recession, significantly hurting prospects for the sterling. The Bank of England refrained from expanding stimulus during its last policy meeting, but most economists agree that the country needs quantitative easing. The pound is supported by its status of a safe haven, but such role looks tenuous considering the economic condition of Britain. Anyway, the problems of Europe allowed added to Britain’s strength against commodity currencies of countries that depend on European demand for their exports.

The pound was drifting down against the greenback and the yen since the end of March and it extended this trend for this week. The euro rose on Friday, but that did not help the shared 17-nation currency to erase its losses versus the sterling. The Canadian dollar was more successful, ending the week almost flat after falling for six consecutive trading sessions.


GBP/USD slid from 1.6133 to 1.6070 and GBP/JPY fell from 128.78 to 128.43. EUR/GBP was down from 0.8062 to 0.8033, while during the week it has reached 0.7994 — the lowest since 2008. GBP/CAD climbed from 1.6067 to 1.6201, but retreated to 1.6076 by the weekend.

Australian Dollar Falls as China Signals About Slowing Growth


The Australian dollar slipped, falling to the lowest level this year against its US peer, as negative macroeconomic data hurt prospects for Australia’s exports and general pessimistic sentiment on the Forex market reduced appeal of growth-related currencies.
The National Bureau of Statistics reported that China’s consumer price index fell from 3.6 percent in March to 3.4 percent in April, being in line with forecasts. Industrial production, on the other hand, frustrated forecasters, falling from 11.9 percent to 9.3 percent, while an increase to 12.1 percent was predicted. Other fundamental reports, including retail sales, were also worse than expected. China is the main trading partner of Australia, therefore its fundamentals have a great impact on the Aussie.

The FX market in general also was not supportive for the Australian currency as traders preferred to stick to safer investments. JPMorgan Chase & Co. announced a $2 billion loss, sparking fear among investors. The MSCI Asia Pacific Index of equities slid 1 percent and posted the second week of losses.
AUD/USD was down from 1.0075 to 1.0019 — the lowest rate since December 20. AUD/JPY dropped from 80.50 to 80.08. EUR/AUD went up from 1.2829 to 1.2887.

Australian Dollar Falls as China Signals About Slowing Growth


The Australian dollar slipped, falling to the lowest level this year against its US peer, as negative macroeconomic data hurt prospects for Australia’s exports and general pessimistic sentiment on the Forex market reduced appeal of growth-related currencies.
The National Bureau of Statistics reported that China’s consumer price index fell from 3.6 percent in March to 3.4 percent in April, being in line with forecasts. Industrial production, on the other hand, frustrated forecasters, falling from 11.9 percent to 9.3 percent, while an increase to 12.1 percent was predicted. Other fundamental reports, including retail sales, were also worse than expected. China is the main trading partner of Australia, therefore its fundamentals have a great impact on the Aussie.

The FX market in general also was not supportive for the Australian currency as traders preferred to stick to safer investments. JPMorgan Chase & Co. announced a $2 billion loss, sparking fear among investors. The MSCI Asia Pacific Index of equities slid 1 percent and posted the second week of losses.
AUD/USD was down from 1.0075 to 1.0019 — the lowest rate since December 20. AUD/JPY dropped from 80.50 to 80.08. EUR/AUD went up from 1.2829 to 1.2887.

Breitbart.com: Document supporting Elizabeth Warren’s ancestry claim doesn’t exist

The exciting conclusion to the Case of the Missing Marriage Application. Remember, after a bit of sleuthing, Michael Patrick Leahy determined that the whole 1/32 claim came down to an 1894 marriage application that had supposedly been unearthed by an amateur genealogist but which no one else had actually seen. Leahy couldn’t reach that genealogist on Friday; today, he did. Mystery solved:

Lynda Smith, the amateur genealogist who unknowingly found herself at the root of the false “Elizabeth Warren is 1/32 Cherokee” meme introduced to the media by “noted” genealogist Chris Child of the New England Historic Genealogical Society, acknowledged in an email to me this past Saturday, May 12, that her statement in a March 2006 family newsletter upon which Mr. Child based his claim of Ms. Warren’s Cherokee ancestry was made with no supporting documentation. It was, in fact, an honest mistake that Ms. Smith now acknowledges is entirely without foundation…

According to Ms. Smith:


“I am rather embarrassed about this posting of mine [on rootsweb about William J. Crawford], especially since it seems to be of some importance…. I’ve been through all papers in my Crawford file and I didn’t find who sent that Cherokee reference to me…”

Read the whole thing for an explanation of Smith’s mistake. The obvious question: Why did the professional genealogist who confirmed Warren’s ancestry for the Boston Herald rely on an amateur’s research instead of demanding to see the original documents? Investigative reporter and genealogist Thomas Lipscomb was wondering that too and sent this e-mail to Powerline:

No reputable genealogist or genealogical organization would ever use a family newsletter by an amateur genealogist as the basis for an opinion. They require direct documentation from a certified copy of a birth or marriage certificate or some other objective evidence. While family newsletters, or family web postings may provide a useful tip as to where the real documentation may be, they are just as likely to be dead wrong encrustations of family myth that may or may not be true, but can’t be proven.

While family members may find these myths of interest, professionals like the New England Historic Genealogical Society and Christopher Child, or the New York Genealogical and Biographical Society, where I have served on the Heraldry Committee, will not accept them as documentation for any kind of genealogical claim. And they certainly won’t take a chance of embarrassing themselves professionally by making a public statement on the basis of flimsy evidence they regard as little more than rumor.

Read all of that too. But wait — you’re not done reading yet. One last piece is William Jacobson’s new post chronicling his e-mail exchange with the New England Historic Genealogical Society and the curious appearance in his comments of someone who’s very interested in spinning what the NEHGS originally told the Herald. Did they really confirm that Warren is Native American, or did they merely confirm that she had an ancestor by the name of O.C. Sarah Smith whom others were claiming was Native American? Spintastic.

Via the Daily Caller, here’s Warren standing by her claim even as Scott Brown’s campaign insists that there’s nothing left of her minority status. Alternate headline: “Elizabeth Warren: I’m very proud of my Native American heritage that apparently no one can document.”