Election takes Centre Stage
It’s Election Day and an important day for the Pound as Brown visits Kirkcaldy, Cameron heads to his old stomping grounds in Witney near Oxford and Keg places himself amongst the wealthy constituency in Sheffield Hallam.
Pound Sterling – UK Markets
Yesterday saw a lot of Euro buyers take advantage of the strong Sterling to Euro rate. It looks set to continue today. The GBP/EUR rate continues to hover around the 1.17 mark as experts predict that the UK’s outstanding credit rating could come under immense pressure in the event of a hung parliament.
The strong GBP/EUR rate over the last couple of days has overshadowed the fact that there is still some uncertainty hanging over the Pound.
Some predict a Tory victory, although a hung parliament is still a strong possibility. If you are concerned about how the election will affect your foreign exchange, speak to one of our brokers today.
US Dollar – US Markets
As positive economic growth figures continue, the future looks bright for the US economy.
Once again the Dollar strengthened against its major counterparts with the Pound and Euro making most of the headlines. The Yen clawed back some ground overnight but the Dollar remains a safe haven currency of choice for investors.
Euro – European Markets
As Greek protests turned violent yesterday, the Greek prime minister today announced that the cuts needed to pay off the €110bn rescue package would still go ahead.
The Euro continues to suffer against all major counterparts as there is increased speculation that other Eurozone countries may follow in Greece’s stead.
Other Currencies – Highlights
Whilst Asian currencies slumped yesterday, growing concerns over the Euro continue to place pressure on global stocks.
The Aussie Dollar dropped 1.2% against its US counterpart. The growing fear that the Greek bailout package is insufficient will be the focus for global currency markets for the foreseeable future.