Gold prices have continued to fall overnight to their biggest loss seen in two days in over 30 years. As Cyprus has announced it may have to sell off part of their gold reserves to help fund its bailout we could see further falls throughout the day. Weak Chinese GDP figures also helped to push gold prices lower. As risk appetite subsides we have seen huge gains for Sterling against commodity based currencies including AUD, NZD & ZAR all of which has increased by almost 2% since early trading yesterday morning.
In particular GBPAUD exchange rates have continued to rise as the Reserve Bank of Australia minutes were published this morning showing that they will keep interest rates on hold at the moment with a view to cut further if necessary. Indeed, if China’s economy slows down this could see the Aussie Dollar come under pressure at Australia sells approximately 37% of its mineral exports to China. If you have a requirement to buy any of the three currencies AUD, NZD or ZAR then email me directly for a free quote Tom Holian [email protected]
With the focus now again on Europe and in particular Greece we could see a bit of volatility this week on GBPEUR rates. Athens has agreed to cut 15,000 jobs in Greece by the end of 2014 as part of its bailout package as it awaits the release of 8.8bn Euros. Currently Greek debt is almost 160% of the entire nation’s GDP and the International Monetary Fund says it must cut to 120% to be sustainable. Since 2010 Greece has received €270bn in bailouts.
At 2pm today Mario Draghi gives a press conference of how the ECB is currently viewing the European economy and if anything needs to be changed. Draghi’s comments this afternoon could cause volatility on both EURUSD and GBPEUR exchange rates. If you want to receive a free quote email me Tom Holian [email protected]