With the Greek government finally forming a coalition will market confidence increase? Forecasts for USD, AUD, NZD and ZAR
As news emerged yesterday that Greece has managed to form a new coalition government, will this lead to an increase in market confidence? Personally I think yes. The new conservative led government headed by Antonis Samaras officially took power on Wednesday ending weeks of uncertainty that has rattled financial markets and I believe this may now lead to an increase in investor confidence and a potential drive towards the so called ‘risky’ currencies.
This could be good news for those selling currencies such as the AUD, NZD or ZAR as I personally believe investor demand and risk appetite for these currencies is likely to increase and hence their value will increase. I would expect GBP/AUD to fall towards 1.52 territory, HBP/NZD 1.95 and GBP/ZAR 12.85. As a result we may also see a move away from the relative safe haven of the US dollar and I can see the cable rate continuing towards 1.60 and EUR/USD towards 1.28. Should you have a currency requirement involving any of these pairings and you would like to discuss my thoughts in more detail then please email Mike at email@example.com
Cable rates also fall as the FED say no to ‘QE3′
GBP/USD rates fell yesterday as the Federal Reserve decided against launching the much anticipated ‘QE3′ as many analysts had expected. Instead the US government has decided to extend ‘Operation Twist’ a bond buying programme aimed at lowering long term rates and to stimulate growth. This gave the dollar a small boost in yesterdays afternoon session, rates have continued in this manner this morning – although for the reasons I have mentioned above I still feel a move towards 1.60 likely.
As my colleague Daniel mentioned below, the aim of this blog is to give an independent and impartial view on recent market trends and current market conditions. We are also here to help individuals and corporate clients alike achieve the best market price when buying currency. The process could not be simpler and we pride ourselves in achieving top market prices for our clients. Daniel has given a very simple breakdown of the service below however should you wish to speak with me to run through the service in full then I can be reached on firstname.lastname@example.org or by calling 01494 787478