Foreign Exchange: Pounds Hits High Against the Euro
Published: 9 July 2012 By Julian Stone Leave a Comment
As investors worried over the Euro, the Pound was seen as a safer alternative and rose to a 3½ year against the Euro.
Not only did the Pound strengthen against the Euro, the Euro also weakened against the US Dollar, falling to a 2 year low.
Pound Against Euro
Fears over the global economic situation and doubts over the outcome of today’s European finance ministers meeting are expected to keep Sterling trading up against the Euro.
The meeting is expected to give further detail on the Spanish banking bailout and the crisis-fighting measures discussed at last month’s EU summit.
Confidence continues to fall and worries increase that the Euro crisis is turning into a global one.
Despite all this, there is however some good news for the single currency as several foreign exchange strategists have said that they expect the worst is now over for the single currency. This though is not an opinion shared by most foreign exchange traders.
Pound Against US Dollar
The Pound is trading above a 4 week low of $1.546 against the US Dollar which it hit last Friday.
The combination of poor jobs figures out of the States and concerns that the Chinese economy is on the verge of a slowdown saw investors seek safety in the ‘Greenback’ and Japanese Yen.
The Dollar is set to strengthen over the course of the day as the markets await the outcome of the two day European Finance ministers meeting starting today. Last week’s interest rate decisions made by the European Central Bank and the Bank of England did little to calm fears that the institutions were able to improve the region’s economic fortunes.
Wednesday’s release of the minutes for the Federal Reserve’s June meeting will be a solid indicator as to whether the Reserve will implement a further round of quantitative easing.
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Any analysis and/or forecasts are provided to help understand market conditions and developing trends. Readers are wholly responsible for their own trading decisions.