This week has been a very volatile time in the markets even more than normal...
The Federal Reserve kept its base rate at an all time low yesterday http://www.guardian.co.uk/business/2009/jun/24/us-federal-reserve-interest-rates . Before this decision was made the USD was losing value hand over fist against a basket of currencies. The main reasoning behind this was seen to be investors who didn't expect a rate hike selling out of their positions with GBP/USD pushing close to 1.66 and USD/EUR pushing past 1.41. As the day wore on the early gains were erased as the market started to calm to 1.6467. The dollar has gained again this morning down to lows of 1.6323 against the £ and 1.3933 against the €.
The fact that rates are showing 200 points swings across a day highlights the situation we find ourselves in. Without a crystal ball it is hard to definitively talk about future prices of the currency pairings. At the brokerage where I work we dont advise our clients but we do ply them with as much info as possible to make those life changing decisions that bit easier. (www.escapecurrency.com)
Thursday 25 June 2009
Wednesday 17 June 2009
MId-Week Update...
Sterling has fallen down from recent highs after statistics show that unemployment in the UK has risen to highest level since November 1996; http://news.bbc.co.uk/1/hi/business/8104546.stm . This was less than expected but it has still harmed the pound with it falling down to lows of 1.1715 against the EUR. This fall has been compounded by news of exports possibly stabilising within the Eurozone; http://uk.reuters.com/article/businessNews/idUKTRE55G2V020090617 . The release of this news in conjunction has caused GBP's fall leaving people taking profit on those EUR's they bought over the last couple of days
The markets remain volatile especially in the pairing of GBP/USD as the prices are moving by 30-40 points across a half an hour. This stormy climate looks set to continue as uncertainty remains over the dollar's position as the world's reserve currency. Lots of clients at the brokerage I work for (www.escapecurrency.com) are taking advantage of this with forward contracts to make a nice little profit in this economic downturn.....
The markets remain volatile especially in the pairing of GBP/USD as the prices are moving by 30-40 points across a half an hour. This stormy climate looks set to continue as uncertainty remains over the dollar's position as the world's reserve currency. Lots of clients at the brokerage I work for (www.escapecurrency.com) are taking advantage of this with forward contracts to make a nice little profit in this economic downturn.....
Monday 15 June 2009
FX today...
The UK is starting to have that stream of positive data which has been predicted for a while now.....
The UK economy is starting to stabilise with growth expected next year at a predicted level of 0.7% according to the CBI. Even though this might not seem much it's a massive improvement on the recent doom and gloom which we have been engulfed by over the past few months. The UK has received another boost after it was said to be in the best position economically compared to its European counterparts according to leading economist Paul Krugman.
This positivity has started to flood into the currency markets with Sterling making gains across the board. However, the most important thing abouts these rises is that they have been sustained! GBP/EUR is 1.1801 and rising and GBP/USD is gaining more ground at 1.6375+
The UK economy is starting to stabilise with growth expected next year at a predicted level of 0.7% according to the CBI. Even though this might not seem much it's a massive improvement on the recent doom and gloom which we have been engulfed by over the past few months. The UK has received another boost after it was said to be in the best position economically compared to its European counterparts according to leading economist Paul Krugman.
This positivity has started to flood into the currency markets with Sterling making gains across the board. However, the most important thing abouts these rises is that they have been sustained! GBP/EUR is 1.1801 and rising and GBP/USD is gaining more ground at 1.6375+
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