Yesterday’s ban on naked short selling and naked credit swaps by Germany has angered other EU capital officials. Allegations of domestic political pressure have been slung towards German officials after the decision was made without first consulting the other EU nations.

Pound Sterling – UK Markets

Details of the historic coalition agreement are to be revealed today. The 30 page document was discussed yesterday and it has been stated that, although some policies had to be scrapped for the agreement to be mutual, both parties were in fact pleased with the outcome. Sterling has today fallen to a near 14 month lows against the Dollar as investors remained cautious over policy makers’ decisions on the Euro debt crisis. Oil prices dropped below $70 per barrel as mounting debt issues across Europe continued to affect the Pound and the Euro. Britain is managing to avoid the severe crashes that Europe is facing at this point in time and at GMT 09:30 the GBP/USD was trading at 1.43670. Although the Pound is still in a relatively strong position against the Euro, we have seen it drop slightly from yesterday’s levels and as of GMT 09:30 GBP/EUR was trading at 1.16030. US Dollar – US Markets As more and more countries appear to be succumbing to financial issues, investors around the world appear to be pouring money into gold and the local currency. The safe haven currency continues to strengthen against its major counterparts.

Euro – European Markets

Greece is expected to grind to a severe halt today as proposed strikes look to attract more than 100,000 people. Fears over possible violence that previously resulted in the death of three people remain at the forefront of everyone’s minds. Cuts in spending and proposed increases in tax and pension ages have angered locals as details of the bailout package continue to unravel. German Chancellor Angela Merkel has been hosting a conference claiming that the Euro is in danger of collapsing. Although some do not share her opinion, she claims that tough regulations must be enforced to penalise EU nations running high levels of debt. Whilst she believes that EU nations have a responsibility towards one another, German nationals have been angered by increases in tax caused by the Greek bailout package. The Euro today remains fairly week against its major partners and as of GMT 10:50 the EUR/USD was at 1.23870.

Other Currencies – Highlights

Thailand’s army yesterday brought a sharp end to the violence that had been occurring in central Bangkok. However, they could do little to stop the spread to other parts of the capital. Although the Baht has suffered slightly, the violence has had relatively little impact on the financial markets. The Baht has still appreciated since the start of the year and as of GMT 10:35 the THB/USD was at 32.3950. The AUD has today dropped to an 8 month low against the dollar on fears of a hung parliament. Risk aversion appears to be the pattern of the day and at European session opening the AUD / USD was at 0.8255.