Daily Archives: September 1, 2010
Following some good gains against the euro in recent weeks the pound has lost over 2 cents from highs in the last week or so. We are seeing a shift away from more risky currencies, of which the pound is currently viewed as one.
The economic problems in the US, talk of further quantitative easing, housing market problems, unemployment issues, are having a negative effect on the US economy. With most currencies this would cause USD weakness but as the US Dollar is a safe haven currency, we are seeing investors moving away from sterling and into dollars. In fairness this is not the case across the board for the dollar, as we are seeing some negative movement against other major safe havens such as the Swiss Franc and Japanese Yen.