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)
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