The Euro is set for a tough winter as we roll on to the New Year and all those involved will be keeping a very close eye on how the festivities draw to a close.
Pound Sterling – UK Markets
The Pound it seems may be in for a rough week ahead as we opened the day with forecasts of a further fall in house prices in 2011. The decline is predicted to come in at around the 2.5% mark according to experts. On the back of this, Sterling took a step back against the Euro and with the changes in VAT entering into the equation next week, it could make interesting reading.
US Dollar – US Markets
The Dollar continued its fall against most of the major currencies as signs of the global recovery is gathering pace. The Australian Dollar climbed to its highest level ever since it was freely floated and looks set to continue its advance.
Whilst the global recovery is gathering momentum and pushing the Dollar into the pits yesterday, figures due today are expected to show the US initial jobless claims have declined.
Euro – European Markets
If forecasts are correct, the Euro zone is in for a very cold January as it is estimated that nations within the debt stricken continent will attempt to borrow up to 80 billion Euros at the start of the New Year. This first month of the year has always proven to be one of the busiest periods but this really could be very bitter for all involved.
It is set to be a very interesting month with expectations that the crisis will deepen as experts wait to see whether Portugal, and even countries such as Spain, attract enough interest in their bonds.
Other Currencies – Highlights
Something a little bit different has been thrown into the mix today with regards to this section of the news. Indonesia, one of the less spoken about countries in the foreign exchange markets has decided to tighten rules on banks foreign exchange holdings and overseas borrowing. This decision has been made as a reaction to cope with capital inflows that have pushed inflation up and strengthened the Rupiah.
For a live quote or to tell us about your foreign exchange requirements, please call us on +44 (0)20 7740 0000.
The US Dollar Rallies on Upbeat Data and Hawkish Fed Stance
Soft CPI Data, Lack of Progress in Brexit Talks Hurt Pound Sterling
Strong Labour Market Data from UK Lift Pound Sterling