Sterling remains buoyant in turbulent market
In a turbulent week for financial markets, sterling had a relatively positive ride hitting a three month high of €1.1550/£1 against the euro last Thursday.
In a turbulent week for financial markets, sterling had a relatively positive ride hitting a three month high of €1.1550/£1 against the euro last Thursday.
Currency rates August 8
EURO/GBP - 1.1443
US$/GBP - 1.6445
CHF/GBP - 1.2431
CAN$/GBP - 1.6122
AUS$/GBP - 1.5880
ZAR/GBP - 11.4250
JPY/GBP - 128.10
HKD/GBP - 12.8389
NZD/GBP - 1.9790
SEK/GBP - 10.6003
US$/EURO - 1.4354
The FTSE 100 closed the week down nearly 10% and Saturday saw credit rating agency S&P cut the USA's credit rating by one notch from AAA to AA+. European Central Bank President Jean-Claude Trichet has announced that the ECB will start buying Italian and Spanish bonds in order to stop the sovereign crisis extending to these countries. Many expect that the Bank of England will now downgrade the UK's growth forecasts.
In the euro zone, Spanish and Italian bond yields jumped to record highs as investors questioned the ability of those countries to fund their borrowing. Italy has now brought forward moves to balance the government deficit by 2013 and the ECB will now step in to buy bonds and keep the borrowing costs low. Many commentators feel that the euro cannot go on in its current format. A fiscal union is the next logical step - the German electorate feels it is bailing out the rest of Europe and has no control over tax levels in the bailed out countries.
In the USA, investors awoke on Saturday morning to the monumental news that the country had been downgraded by rating agency S&P - losing the precious AAA credit rating. The move attracted criticism from all angles in the USA, but the key point is that the USA is the only country whose net spending as a proportion of GDP has increased since the start of the credit crisis.
Elsewhere, the news from the USA and Euro zone over the weekend saw the Japanese markets open down 1.7% and the New Zealand stock exchange opened 3% down. Stock markets are plunging as a result of the weekend's developments.
Smart Currency Exchange is a currency partner to Harpers Wine and Spirit. Harpers Wine and Spirit has teamed up with Smart to provide readers with a free bespoke currency service.
Keywords:
Search
56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
Registered in England No. 6646125. VAT No. 938 4452 95
