Here is our account of the political and economic factors that affected the exchange rates overnight. To find out how they affected your currency transactions, don’t hesitate to contact us.
Exchange Rate Changes In Past Month
This is a table of the gains in currency you could have achieved in the past month, trading at the high compared to the low:
GBPEUR: +1.193%
GBPUSD: +3.313%
GBPCHF: +1.316%
GBPAUD: +0.812%
GBPNZD: +0.398%
GBPCAD: +1.518%
EURUSD: +4.508%
The euro has inched up against its main rivals this morning, as investors continue to hold faith that Greece can sign a debt reduction deal.
Overnight, Greek government officials put off finalising a deal once more, to accommodate (painful) demands that the minimum wage be cut in Greece before it receives its second bailout. In spite of this, officials are set (the market expects!) to sign an agreement that slashes up to €100bn from Greek debt very soon. Hence euro strength!
In addition, reports that the European Central Bank is set to exchange highly secure EFSF bonds for Greek bonds also aided sentiment.
Turning to the US, Fed chairman Ben Bernanke appeared before the US senate last night, talking about US economic progress. He argued that prospects remain poor in spite of recent gains in the job market, and emphasised that politicians must put US debt onto a sustainable footing before confidence can be restored.
Ordinarily such statements might dampen global sentiment, causing investors to flee the euro and other risk-based currencies in favour of the US dollar. Optimism regarding Greece though meant his statement had little impact: the euro continued to gain last night regardless.
Looking ahead to the upcoming interest rate decisions from the Bank of England and European Central Bank tomorrow, economists predict that neither central bank will take action.
In the UK, lingering high inflation makes initiating more quantitative easing a dangerous proposition right now. In Europe meanwhile, ECB President Mario Draghi is expected to let investors digest his previous rate cuts before making another.
Hence both meetings look set to be non-events.
Coming Up
The following important economic releases are due later this week. There might hence be movement in the exchange rates at these times.
Wed 8th Feb 2012
12.00 US MBA mortgage applications
21.45 NZ unemployment rate
In addition, to learn how this data has affected your foreign exchange transactions, feel free to get in touch. You can also call us on +44 (0) 1494 671800 or email enquiries@purefx.co.uk.
8 February 2012
Greece Tests Market Patience As Debt Deal Delayed
Here is our account of the political and economic factors that affected the exchange rates overnight. To find out how they affected your currency transactions, don’t hesitate to contact us.
Exchange Rate Changes In Past Month
This is a table of the gains in currency you could have achieved in the past month, trading at the high compared to the low:
GBPEUR: +1.193%
GBPUSD: +3.313%
GBPCHF: +1.316%
GBPAUD: +0.812%
GBPNZD: +0.398%
GBPCAD: +1.518%
EURUSD: +4.508%
The euro has inched up against its main rivals this morning, as investors continue to hold faith that Greece can sign a debt reduction deal.
Overnight, Greek government officials put off finalising a deal once more, to accommodate (painful) demands that the minimum wage be cut in Greece before it receives its second bailout. In spite of this, officials are set (the market expects!) to sign an agreement that slashes up to €100bn from Greek debt very soon. Hence euro strength!
In addition, reports that the European Central Bank is set to exchange highly secure EFSF bonds for Greek bonds also aided sentiment.
Turning to the US, Fed chairman Ben Bernanke appeared before the US senate last night, talking about US economic progress. He argued that prospects remain poor in spite of recent gains in the job market, and emphasised that politicians must put US debt onto a sustainable footing before confidence can be restored.
Ordinarily such statements might dampen global sentiment, causing investors to flee the euro and other risk-based currencies in favour of the US dollar. Optimism regarding Greece though meant his statement had little impact: the euro continued to gain last night regardless.
Looking ahead to the upcoming interest rate decisions from the Bank of England and European Central Bank tomorrow, economists predict that neither central bank will take action.
In the UK, lingering high inflation makes initiating more quantitative easing a dangerous proposition right now. In Europe meanwhile, ECB President Mario Draghi is expected to let investors digest his previous rate cuts before making another.
Hence both meetings look set to be non-events.
Coming Up
The following important economic releases are due later this week. There might hence be movement in the exchange rates at these times.
Wed 8th Feb 2012
12.00 US MBA mortgage applications
21.45 NZ unemployment rate
In addition, to learn how this data has affected your foreign exchange transactions, feel free to get in touch. You can also call us on +44 (0) 1494 671800 or email enquiries@purefx.co.uk.