by Damian -
The US Dollar exchange rates did very little yesterday after hitting a low of 1.3190 breaching the 1.3200 level. We aren’t expecting much movement today in the dollar as the news from the Euro area is expected to dominate the headlines.
The GBP exchange rate is again a little firmer against the euro exchange rate, but a little softer against the other currencies. Like the US dollar there is little in way of “news” that will give the pound direction but we do expect the pound to test 1.2600 against the Euro.
“Super Mario saves the Euro Exchange Rate again” should be top of today’s financial papers. The ECB stated that they were at the moment unless the CPI data in August slumps unwilling to add stimulus. Well Super Mario – I personally think you should dump money out of a helicopter – the longer you leave it more you will have to do in the long run.
Alternatively make Club Med banks lend on property to foreigners to buy housing – that way foreigners can bail out the Spanish/Portuguese /Italian – (lets face it, the entire Euro Zone) property market and can be left holding the baby. The lack of mortgages is currently preventing distressed property to be sold. Selling the empty properties and get the tourism and building trade industries going again.
On a separate note – thank you to all those who made comments on my grammar and spelling yesterday. Let me assure you I am better at foreign exchange markets and math than I am at English. I am also a bitter disappointment to my my mother who holds a doctorate in English Literature. But on a more positive note, it is great to see people read the report and giving feedback.
MORNING MARKET RATES:
Please contact me to discuss SPOT pricing, FORWARD pricing or alternatively placing MARKET ORDERS at pre-desired rates.
P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG POUND AND LOOK AT SECURING EUROS/ USD ON A FORWARD CONTRACT FOR UP TO 2 YEARS IN ADVANCE. WE ONLY REQUIRE A 3% GBP DEPOSIT TO SECURE A RATE GIVING YOU PEACE OF MIND AGAINST RATE FLUCTUATIONS.