Daily Archives: September 9, 2011
Today has seen significant developments on the currency markets. GBPEUR has moved up by 1.3%, GBPUSD down 0.8%, GBPAUD up 1.6%, GBPZAR up 1.9%, with many other significant movements and recent highs touched.
This is all down to the ongoing concerns over the global economy, in particular the slowing down in the rate of global growth. The G7 are meeting to discuss how another recession can be averted. The ongoing crisis in Europe is also weighing heavily on investors minds with all the major stock markets down.
Feel free to get in touch on email@example.com or (+44) 01494 787 458 to discuss how these events are affecting your trades. Please quote JMW and PSF.
When we mention ‘safe havens’ the UK is pretty low on the list of favoured options. A safe haven investment is something that is deemed to be very low risk and therefore a ’safe’ investment. In times of uncertainty favour for such investments increases as attitudes to risk change. As money pours into any investment it becomes more expensive to buy as the price goes up. Typcial safe havens would be Gold, the Swiss Franc and the US dollar. Gold and the Swiss Franc have appreciated in value massively in the last few years as investors seek safe havens amidst the doom and gloom surrounding financial markets. One of the reasons the US dollar has lost value is that when the financial crisis first hit in 2007/8, money poured into the dollar. Since then whilst major fears remain, the global economy has recovered and safe haven funds have been moved away from the dollar into other slightlier riskier assets like the Aussie dollar and even the Kiwi.
The pound is not really considered a safe haven in the same vein as Gold and the Franc, or even the dollar but that could be about to change. London has more FX transactions taking place than any other financial centre in the world and is therefore the largest foreign exchange centre in the world. The unique placing of the UK geographically means throughout the day we can deal with the Asian markets, European markets and the American markets. I also had read a report that the Chinese Yuan is to be developed more as a global currency and this is to be done with the assistance of the UK. George Osborne recently met with the Chinese Vice Premier to discuss this exact opportunity. As such a large financial centre London was majorly affected by the financial crisis but it does still retain a very strong international reputation for being a ‘good place to do business’. Such major moves as the work with China and the tough budget deficit reduction measures the coalition government has undertaken all have the goal of restoring Britain’s financial credibility in the long run. Yes we are experiencing some harsh times but we knew things would be tough. Only time will tell whether the measures taken to combat the UK’s debt problems are too tough. I feel the long term goals that are being pursued will give the pound strength but it will take time for this confidence to be restored.
If you have any currency requirements at present we can secure extremely sharp commercial rates of exchange. Even if your needs are in the future we can secure todays rates for a small deposit with no need for full settlement for two years. If you would like to discuss any of the issues surrounding your foreign currency transfers please get in touch on 00 44 1494 787458 or e-mail firstname.lastname@example.org
Great news for those looking to buy Euros in the near term, head of the European Central Bank Jean Claude Trichet yesterday downgraded his forecasts for the Euro Zone in his speech yesterday and we have even heard the mention of a rate cut for the Euro Zone…
The phones are going crazy here so this post is short and sweet, contact me email@example.com if you have a transfer to carry out.