Barbara
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Pound Set for Biggest Weekly Drop in 16 Years - 2008/10/03 20:33
Hi guys!! The weekend is upon us. Last chance to make a quick profit in FX  If I dont see you guys in the trader's chat have a nice weekend with your family.
The pound headed for its biggest weekly drop versus the dollar since 1992 after a report showed U.K. services contracted the most in at least 12 years, fueling speculation the economy may already be in a recession and the Bank of England will cut interest rates soon.
The U.K. currency lost 5 percent against the Japanese yen this week, the most since August 2007, as manufacturing contracted, home values plunged and banks planned to scale back loans. The government seized mortgage lender Bradford & Bingley Plc this week as the world's financial system ground to a halt amid a cash shortage. The central bank will cut its key rate next week, economists surveyed by Bloomberg News predicted.
The U.K. currency was at $1.7668 at 1:07 p.m., from $1.7639, a loss of 4.3 percent in the week, the biggest since September 1992. The pound traded at 185.73 yen, from 185.80 yesterday, and 195.54 at the end of last week. Against the euro, it was little changed at 78.34 pence, gaining 1 percent since Sept. 26.
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