The affects that Europe has on all global currencies.

We have worryingly seen a big decline in the value of sterling exchange rates over the course of this week with losses against the USD, AUD, NZD and CAD.

Regardless of the currency that you require converting events in the Eurozone are having an effect on all of the 16 most major traded currencies. You may think that because you require making a currency exchange that does not involve the Euro you don’t have to worry about what is happening there. If this is your line of thought then you could not be further from the truth.

From the USD & CAD to the AUD, NZD & ZAR events inEuropeare having huge implications on the movements of all currencies. I feel we are starting to see a trend occur in connection with investor confidence surrounding Europe which can strengthen or weaken a currency by a good few percent in a day or two. In a nut shell the trend seems to be as follows for sterling exchange rates:

Confidence in Europe and the global economy- Enhances risk appetite for investors

↑GBP v USD (Sell off of Dollars)

↓ GBP v AUD, NZD, ZAR (more demand)

No Confidence in Europe and the global economy- Causes investors to look for the safe havens)

↑ GBP v AUD, NZD, ZAR (Sell off of currencies)

↓ GBP v USD (more demand)

Recently the pound has seen a 4-5% movement against the southern hemisphere currencies all on the back of investor confidence. It shows that when you feel the pound is heading in the right direction all of a sudden events in Europe can cause so much uncertainty and make investors rethink their positions which moves the rates of exchange very quickly.

I will be happy to speak with you in more detail to fully explain the affects of Europe on your currency exchange. Please email me with the details of your requirement at [email protected] and I will call you to discuss the outlook for your requirement and the options that are available to you.