Daily Archives: November 3, 2011
All eyes will be on the G20 Summit on Friday for some calm to the markets
Today there was a shock cut in interest rates by the European Central Bank which spooked Euro exchange rates and helped the pound rise to a
high of 1.1680 before dropping back down by a cent. It seems that it recovered quickly because Greek Prime Minister George Papandreou’s backstep on holding a referendum on the newest EU bailout plan. We are at present in the middle of a two-day meeting of G20 leaders in Cannes,
which opened on Thursday with a focus on how to get the Eurozone crisis under control.
There seems to be news emerging out of Europe all the time and the story is constantly changing. At first we thought a bailout package had been put in place for Greece and that the Greek PM had accepted it. Then the Greek PM said he would put it to the people of Greece to see if they wanted to accept it. This sent the Euro spiralling out of control. Then an emergency meeting was called in Cannes and apparently Greece was told that if they do not accept the conditions of the bailout they will have to go at it alone. So at the end of today we heard that Papandreou had said he will not call a referendum if the opposition agree to it. There have now been calls for the Greek PM to step down and call an election. He has
refused to do this.
The situation is so up in the air that the uncertainty is frightening. At present it is very hard to predict long term. There are so many factors that
could affect things going forward but I still feel that Greece will get another batch of bailout funds. For those of you that are reading this I would imagine that you have a currency exchange to make in the near future.
At the moment it is about capitalising on any spikes that the pound can find as there are swings every week of around 2-3% If you can catch a rate when the pound is up on a day like today when unexpected data hits the market there are many gains to be had. Why don’t you let us watch the markets for you if you are too busy to do so. I had lots of clients who had their limit orders fill today straight after the interest rate cut for Europe and did not even realise there trade had happened. It is a very good tool to try and achieve a rate that is not available at present. If you would like more information on the service that we provide and how we can help you make a significant saving on your exchange please contact me at bma@currencies.co.uk Just quote PSF and I will contact you straight away to discuss the optionsthat are available to you.
Super Mario starts off with a bang and cuts European interest rate at decision to 1.25%
Breaking news, The European Central bank have cut interest rates to 1.25% which has led to a little Euro weakness… All eyes on the press conference starting shortly!!
European interest rate decision today….. Can we expect fireworks just in time for 5th November??
Today sees the release of the European Central Bank interest rate decision – New head of the ECB (not jealous of his new job) Mario Draghi has quite a decision on his hands. There have been calls for an interest rate cut in the Eurozone however will he be willing to enter his new position with a bang or will he be looking to get his feet under the table before any big decisions are made?
Personally I feel we have about a 30% chance of him doing so, which should lead to the Euro getting even weaker – however that other 70% option could easily end up with the Euro gaining back some strength as investors may have already speculated that there may be a minor cut.
We still have the continuing Greek crisis which will no doubt still be unfolding and still lead to swings upon releases throughout the day so you certainly cannot rule out a spanner in the works there!
Markets are indeed all over the place at present and it is key you have an experienced currency broker on your side when dealing with any large currency transactions as i’m afraid hope will not move the markets. I am happy to deal with any regular readers that have bank to bank transfers of anything from £5000 up to multi million pound transactions for corporate clients. I can be your eyes and ears on the market and help you develpop a strategy that may save you £1000s.
I cannot directly advise you but it is certainly worth having assistance and a personal opinion of someone that has been in the market for years. If you would like to join our 41,000 satisfied clients then please open a free, no obligation trading facility by clicking here and I will be more than happy to personally give you a call to discuss your requirements. Please ensure you place my name (Daniel Wright) as your point of contact.
