The Pound Still holding its own against the majors so far this week, however the Bank of England and the ECB meet tomorrow to announce the interest rate decisions, any unexpected announcements could have a massive impact in the pounds direction. Meanwhile On Tuesday, two UK banks announced large capital raises. Lloyd Bank will try to raise at least another 21 billion pounds. Royal Bank of Scotland PLC will get another 25.5 billion pounds from a strapped for cash government, whose stake in the company will rise to over 80 % from 70 %.
The Dollar has been a mixed bag this week amid major bank restructurings in Europe, while U.S. factory orders rebounded and investors looked ahead to central bank meetings in the U.S. and Europe. The dollar still seems to be losing ground against the pound as investors are still looking to invest in more risky assets.
Australian Dollar Australia raised its benchmark interest rate by a 0.25 % for the second straight month; Australia is now the only nation to increase borrowing costs twice this year. However retail sales unexpectedly dropped in September, driving down the currency, this may make the Dollar less attractive to investors and look for other risky assets. After yesterday's rate increase central bank governor Glenn Stevens may put a hold on any more interest rate increases in the near future as the economy could start to wobble.
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