Welcome to the Pure FX account of the latest changes in the foreign exchange rates.
This is intended as a brief guide to movements in the exchange rates overnight, to put you in the best position for when you exchange currencies.
The foreign exchange rates are all but unchanged overnight, as the stock and equities markets in the United States close, owing to Hurricane Sandy.
The hurricane has had two effects on the markets since Monday. The first is to reduce trading volumes, meaning that fewer people are active on the markets, so that they tend to move less. The second is that, even for people outside the United States who can still trade, they’ve held off, until the full impact of the hurricane is known. Hence, the unchanged rates.
Of course, it might seem a little heartless to take about a natural disaster, strictly in the context of foreign exchange rates. Sandy has claimed almost forty lives at the time of writing, left millions of people without power, and done untold damage to the East Coast of the US. Our thoughts are with those affected.
Coming up, a meeting of Eurozone finance ministers could decide the fate of Greece today. Ministers are set to discuss whether Greece should be given a two-year extension to meet its debt reduction deadlines, without which it will almost certainly sink into deeper recession.
The problem is that, the principle aside, it isn’t a simple matter of telling the Greeks, ‘Okay, we give you more time.’ To more years means billions of extra euros to keep the Hellenic country afloat, which must of course be paid for. Given that, it’s by no means certain Greece will be given the money, which could see her in limbo for some time yet.
Of course, if the Eurozone is seen to be floundering where Greece is concerned, that could knock market confidence in the common currency. If you intend to buy euros, this could therefore be to your advantage, as the euro becomes cheaper. Something to look out for!
Find Out More
I do hope you’ve enjoyed reading this post. To find out more.
Read our Daily Market Commentary to find out what’s affecting the rates today.
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