The focus surrounding European airspace seems to have subsided, so all eyes will return to the political campaign. Whilst the skepticism surrounding various promises made by the leading campaigners remains as strong as England’s apparent capacity to lift this year’s World Cup, the ongoing debates will undoubtedly provide a similar level of entertainment.
Pound Sterling – UK Markets
After a worrying start to the week, the Pound somewhat recovered against the USD and was simmering around the 1.54 mark at European session opening. Unfortunately, this spike appears to have occurred in tandem with disturbing levels of inflation which suggests the BoE may be forced to increase interest rates prior to Christmas.
US Dollar – US Markets
As the fraud allegations against Goldman Sachs Group Inc. return to the spotlight, the tentative confidence in the Dollar seems to have eased. An overnight slide in the dollar index suggests our earlier confidence in the currency may be worth a second glance. Currently, its only saving grace appears to be the Greek turmoil affecting the Euro. Speak to your broker to get an inside view into the rise and fall of the Dollar.
Euro – European Markets
Although we may be growing tired of the focus surrounding Greece, it is difficult to ignore the dark clouds which seem to have brought turmoil on more than just European airspace. Whether or not the 10 day talks which are due to start today between Greece, EU and IMF officials will solve the colossal debt problems is yet to be seen. All we do know is that Greece faces extreme restrictions until 2012 if they are to receive a bailout of around 30 billion Euros of euro zone emergency aid.
Other Currencies - Highlights
Asian markets received a boost as better than expected earnings by Apple made its way through the economy with shares in the company increasing by more than 5%.
Major news surrounded the Canadian Dollar which rose to a 2 year high after it was suggested an interest rate rise could come as early as June 12th.
Sterling Rises on Hopes of EU Softening Tone on Backstop