EUR/GBP News

UK reported a slightly less than anticipated weakening in the housing market for September, where BBA loans for house purchases dropped slightly less than anticipated to 31104 from the previously revised 31781 which was revised to the upside from the original estimate of 31767. The data was though still weak and reflected the decelerating pace of recovery in the sector it was still stronger than the expected decline to 31000. 

The British pound dropped against majors, except the dollar, ahead of the release of Osborne spending review as budget squeeze widened to the highest level since 1993 in September. Public sector net borrowing shortfall reached 15.6 billion pounds from 14.8 billion pounds a year ago, while cash requirements climbed to 20.7 billion pounds from 6.2 billion pounds. The harsh data supports the coalition-government that will be announcing the sharpest spending cut plan in generation later on today in the Spending Review that will show 83 billion pounds cuts from different sectors throughout the upcoming four-years. Other data released today from the UK showed that policy makers at the BoE split 7-1-1 for the first time in nearly a year with regard October's rate decision that included holding both borrowing cost and APF unchained at 0.50% and 200 billion pounds respectively. Andrew Sentance insisted on raising interest rate to 0.75% to avoid inflationary pressures while Adam Posen preferred adding 50 billion pounds to the current...

 GYEONGJU, South Korea (Reuters) - Treasury Secretary Timothy Geithner suggested that he sees no reason for the dollar to sink further against the euro and the yen, saying these major currencies are "roughly in alignment," the Wall Street Journal reported on Thursday. In an interview with the newspaper, Geithner also emphasized that the United States was not pursuing a deliberate policy of devaluing the dollar. This echoed comments he made on Monday in Palo Alto, California, saying "No country around the world can devalue its way to prosperity." In the Journal interview, he referred to three groups of currencies. In one, he put countries with currencies "undervalued by any measure" and in the second he put emerging economies with flexible exchange rates that intervene or impose taxes to try to reduce risks. "In the third group, he put "the major currencies, which are roughly in alignment now," a suggestion that he sees no need for the dollar to sink more than it already has...