Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
 
  Daily Currency News Euro US Dollar Educational Articles  
 
Posted May 10th, 2010 by Charles Purdy

EURO/GBP – 1.143
US$/GBP – 1.495
CHF/GBP – 1.638
CAN$/GBP – 1.529
AUS$/GBP – 1.649

After a turbulent week for the pound last week, and the most closely fought election for nearly forty years, we are still in store for a turbulent week on the foreign exchange markets. Sterling recovered marginally from Friday morning’s lows against the US dollar as David Cameron and Nick Clegg discussed the possibility of working together in a Liberal/ Conservative coalition. With discussions taking place over the weekend, the markets are awaiting clarity as to what the outcome will be. However, with both parties clear that a major priority is clearing the deficit, we should see sterling recover on the announcement of any power sharing deal. At the same time, if talks fail, we will see another fall in sentiment towards the pound. Despite political factors taking centre stage this week, there is a lot of fundamental data out too. Today we have the Bank of England’s interest rate decision (postponed from last week following the election). It is widely expected that the Bank will keep rates on hold at 0.5% and keep the emergency funding on hold at £200bn. Also, we have retail sales data for the UK. Call in now to avoid the market moving against you.

In the Euro zone, following panic last week over the risk of sovereign debt ‘contagion’, the big news this morning is the announcement of a 500bn comprehensive package to avoid the Greek crisis spreading. The package takes the form of loan guarantees and the European Central Bank pledged to conduct ‘interventions’ in public and private debt markets to ensure ‘depth and liquidity’. This is to all intents and purposes the same as the quantitative easing programme that the US, UK and Japan put in place in 2008. This announcement has seen the return of (some) confidence in the Euro zone and as a result, the euro has jumped back over 1.30/ $1 and has strengthened by 1.5% against sterling. Despite this, UBS and Barclays Capital investment banks both see the euro hitting a ‘fair value’ of 1.20/ $1 in the next few months. Get in touch now to make sure you are protected from these movements.

In the USA, the US dollar has dropped in early trading this morning following a return in broad appetite for risky assets. The US dollar is down nearly 1% since last week against the pound and is currently trading at $1.4925/ £1. The focus for the week in the USA is the numerous speakers from the Federal Reserve and some fundamental data out towards the end of the week. We have seen incredibly high volatility in the last 2 weeks – call in now to make sure you take advantage of the movements.

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

Leave a Reply

You must be logged in to post a comment.

Posted May 7th, 2010 by Charles Purdy

EURO/GBP – 1.150
US$/GBP – 1.462
CHF/GBP – 1.630
CAN$/GBP – 1.539
AUS$/GBP – 1.647

Sterling has had a rollercoaster ride over the last 24 hours. We saw it hit 1.1860/ £1 at one point yesterday, before falling to a low (at the time of writing) of 1.1532/ £1 as sterling goes into freefall this morning as current predictions point to a hung parliament. Against the US dollar, the pound plunged as the first exit polls were released at 10pm last night and hit $1.4598/ £1 – the lowest level in over a year. Sterling is currently trading at $1.4710/£1, but could drop considerably further depending on how the day develops. The huge volatility was as a result of panic selling as concerns over the spread of European sovereign debt sent shockwaves through global markets. This panic hit stock markets and at one point yesterday in the USA, the Dow Jones was down over 1000 points – the most since the height of the credit crunch. The FTSE slipped over 5% and is on track for the biggest weekly fall since March 2009. With current results showing that a hung parliament is the most likely outcome of the election, sterling took back gains made against the euro yesterday. With complete uncertainty as to who will be the next prime minister, especially with Gordon Brown seemingly keen to cling onto power despite a huge swing to the Conservatives. Call in now for a live price, as a lot could happen over the course of the day.

In the Euro zone, rioting gripped the Greek capital for a second day as members of the public protested against the terms of the recent 110bn ‘austerity package’. The Greek parliament unanimously approved the terms, which impose harsh cuts on public spending, tax increases and caps on public sector salaries. The fear over ‘contagion’ spread is likely to grip markets further today. The euro took a huge hit yesterday and has fallen to near historic lows of 1.25871/ $1 against the US dollar. Analyst predictions of 1.20/ $1 is looking more and more likely as we continue to see absolute panic over the state of the Euro zone. Call in to ensure you don’t miss out.

In the USA, the Dow Jones recovered slightly after posting a 1,000 point drop yesterday and VIX (a measure of volatility in global financial markets) spiked above 40 for the first time since autumn 2008, when panic over Lehman Brothers caused huge movements across all asset classes. This shows the gravity of yesterday’s situation, as panic over Greece and concerns over the UK’s political situation saw investors flock to US government bonds which also saw interest rates paid plummet as demand for the ‘safe’ assets spiralled. Today we have non-farm payroll in the USA, which still has potential to cause further movement, especially if it comes in at anything more or less than expected. Call in now for a price on US dollars, as we could see absolutely anything happen in the next few days

Exchange rates change every second – call Smart Currency Exchange for a live up-to-the-minute quote on our Freephone number: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or fill out our online quote form at: SmartCurrencyExchange.com/quote.aspx

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus