Pound Reaches Record Low against Euro
Pound Sterling - UK Markets
The Pound reached an all time low against the Euro yesterday, dropping through the 1.2 level to trade at 1.19 and hit its lowest point in 6 years against the US Dollar. The Pound is currently sitting on 1.4865 versus the US Dollar, having gained 0.26% and approximately 0.85-0.86 versus the Euro.
This morning RBS announced 3000 redundancies worldwide as we are starting to see the cumulative effects of the credit crunch in economic contractions, rising redundancies and unemployment levels. Brown has called on major economies to cut taxes as interest rate cuts alone cannot provide the ‘fiscal stimulus' required for the global economy.
There is no major data from the UK today, with retail price index figures being the next market movers on Tuesday 18th.
US Dollar - US Markets
The US Dollar is holding its strong position, enjoying a bullish run against the Euro and Pound, as world leaders meet in Washington for the G20 summit this weekend.
The G20 represents 85% of the world's economy and the outcome of the meeting is expected to provide information as to how major economic nations plan to address the pending global recession. We can expect further volatility early next week.
The US Trade balance came in yesterday at -$56.4 billion and retail sales data is due today.
Euro - European Markets
The Euro is trading at record highs against the Pound despite evidence of the Eurozone entering recession. German and Spanish economies have shown evidence of economic contraction in the third quarter, by 0.5 and 0.2% respectively. Figures at G20 are expected to show the 15 nation Eurozone in recession, with analysts predicting a 0.2% contraction in the second quarter of 2009.
The German CPI yesterday showed inflation slowing inflation by 0.2% from September to October.
The EMU Consumer Price Indices are out this morning and the EMU trade balance on Tuesday 18th.