Daily Archives: October 21, 2011
The South African Rand has weakened over the course of this month against GBP & USD. The pound has gained nearly 6% this month reaching the dizzy heights of 13.00. These are levels that we have not seen for close to 2 years.
South African third largest trading partner is with the Euro and the sovereign debt crisis is having a massive knock on effect against emerging currencies. With European leaders failing at present to agree new measures to solve the debt crisis investors have been selling their positions in riskier currencies and the southern hemisphere currencies like the ZAR, AUD & NZD have weakened immensely.
There is an EU summit this weekend and will continue into next week. EU leaders Sarkozy & Merkel want the Euro zone to agree on an ‘ambitious plan’ over the next week to stop the crisis spreading to other countries.
I personally feel that next week will be key to global events. The likelihood is that EU ministers will come out with positive comments that will calm the markets and then Investors in the near term will look to the more volatile currencies once more. This may strengthen the Rand once more and the gains that we have seen this week could disappear very quickly.
Above is a graph showing the gain for the pound against the Rand since the beginning of the month. Now may be a great time to convert your funds into Rand and capitalise on the two year high. If you would like assistance in saving on your exchange please contact me on email@example.com
Good morning all,
This weekend could well be key for the strength of the Euro as top European members are meeting in Brussels to attempt to find a solution for Greek debt and the general problems within the Euro Zone (haven’t we heard this one before?) It has been commented on this morning that we may now have to wait until Wednesday before we see any real results from this meeting, it wouldn’t surprise me to see this delayed again next week however what this does mean is that investors may well be a little cagey surrounding the Euro in the coming week, so expect some market volatility and some great buying and selling opportunites.
If you have an upcoming requirement, it may be prudent to look at placing a limit order or indeed a stop loss, this is where you can set a target rate, or a worst case scenario and should this rate be achieved at any point day or night your currency will be bought out automatically. There is no cost for this tool and it comes in extremely handy for those with hectic lifestyle and busy schedules that do not have the time to look at rates 24 hours a day, believe me… it can take over your life!
This morning we saw fairly positive news for the Pound as Public Sector Net Borrowing figures were slightly lower than expected, meaning the Government isn’t going mad on spending at present however this hasn’t really had too much of an impact in the market so far.
The misery index (calculated by adding inflation and unemployment) is atthe highest point in the U.K in 19 years and the U.S for 28 years! This just goes to show worldwide there is a rocky road ahead and a lot of money to be made and lost in upcoming currency transfers so make sure you are one step ahead at all times and protect yourself from adverse market movements.
On an seperate note, Pound Sterling Forecast has just been named in the top 25 Corporate Finance Blogs in the country and my twitter (@currencyinfo) has just been named number 8 in the country for corporate finance (Joint place with David Smith of the Sunday Times) so do feel free to follow me and indeed to tell all of your friends about this site and I will continue to update it with unbiased and simple updates on the markets that will hopefully help you make the most of your money.
I am actually a currency broker as well at http://www.currencies.co.uk/ – If you want me to assist you personally with any currency requirement be it Corporate or Personal then contact me directly firstname.lastname@example.org and I will be happy to deal with you for any requirement from £1000 – £10,000,000 as long as it is a bank to bank transfer and I can assure you that I shall get a great rate of exchange and the customer service will be second to none.
I look forward to hearing from you.