Foreign Exchange: Euro Rallies As Sterling Falls Through Support
Published: 19 July 2010 By MoneyHighStreet Staff Leave a Comment
The Euro has continued its rebound, rallying in anticipation of positive reports from the recent European bank ‘stress tests’. But Sterling has broken below the 1.1900 support level.
The Euro continued to rebound from 18 month lows as European inter-bank lending rates rise after the ECB absorbed €59bn of government bonds.
In addition, the Euro has been rallying in anticipation that the recent European bank ‘stress tests’ will prove to be positive and reassuring to investors. The results are due Friday.
Given the uncertain outcome, TorFX are advising clients with Euro requirements to consider hedging at least part of their exposure before the announcement.
Sterling has broken below the June low at 1.1900, suggesting to many a further decline toward the next key level at 1.1400. With this negative development the question is will the upward trend that has dominated continue through the second quarter of the year?
Torfx are advising clients to be extra cautious in case this slide develops into a full blown sell off.
Market Analysis by Jon Beddell, Torfx
Contact TorFx if you need to make a currency transaction or need live dealing – they will provide you with a free, no obligation quote and help as you require.
Any opinions expressed in this document are aimed at helping readers understand foreign exchange market conditions and developing trends. Readers are wholly responsible for their own trading decisions.
Get our FREE weekly newsletter to keep up to date with all our foreign exchange and personal finance news, tips and reviews plus our latest offers and discounts.