RENEWED EURO FOCUS

The Irish and Portuguese debt situations are alarming the markets once more so there is much volatility on GBPEUR.

Datawatch Friday sees Germany’s GDP figures at 7 am GMT, then EMU (European Monetary Union) GDP at 10 GMT. Germany is the major economy in the eurozone and has continually outperformed expectations. Expect a strong showing to give the euro a boost. This may eradicate the fantastic gains seen by sterling yesterday. Why not call us now on Freephone 0800 328 5884 to discuss your transfer?


USD DEVELOPMENTS

Since the Federal Reserve announced $600bn of further QE last week, the dollar had weakened significantly, however we have seen some strength. I feel this is because of the European Debt situation causing investors to ‘leave’ the euro and invest in the more traditional safe haven currency, the USD. Also the latest Trade Balance figures yesterday showed the US reduced its trade deficit, by $2.48bn dollars. Considering all the talk of US and ‘currency wars’ a reduction in their trade deficit is good news for the US.

A NEW WORLD ORDER – Why are certain currencies so volatile while others remain strong?


Does anyone remember when it was 2.5 Aussie’s to the pound? Or 3 Kiwi’s to the pound? I personally feel those days are long gone and these four currencies need to be seen in the backdrop of the economic mire that the Pound, Euro and Dollar are still in. They are all relatively speaking trading at very strong levels. Particularly against sterling we have seen them gain massively. Get in touch to discuss their outlooks in more detail if you have these requirements.

AUD, CAD, ZAR & NZD Increased global demand for raw materials is keeping the mining sectors very strong in Canada, Australia and South Africa and high interest rates are making all four currencies very attractive to investors. Contrast for example the longevity of the global mining industry against the UK’s much reduced manufacturing sector. The strength creates certainty for future economic development. In New Zealand the Unemployment rate recently dropped. The US and UK can only dream of this happening.



If you are buying a property abroad and want the best exchange rates, just email ajm@currencies.co.uk / call 0800 328 5884 or visit www.currencies.co.uk and quote AJM Blog GBP Sterling USD Dollar EUR Euro NZD Kiwi AUD Aussie DKK Krona CAD Loonie CHF Swiss ZAR Rand THB Baht HKD Dollar CZK Krona TRY Lira SEK Krona NOK Krona