Greek debt concern is still haunting the single currency as EU finance ministers will meet later in Madrid today.

Pound Sterling – UK Markets

Sterling has slipped following last night’s much publicised electoral debate, suggesting volatility throughout the general election campaign looks set to continue. Last night’s televised debate between leaders of the UK’s three major parties has further fuelled the possibility of a hung parliament. The strong performance of Nick Clegg, Liberal Democrat leader, has led to increased voter uncertainty and suggested the third party may hold the balance of power. The suggestion of a hung parliament is likely to weaken confidence in Sterling as the UK debt crisis will be deemed to be more difficult to address after the 6th May.

US Dollar – US Markets

The US trade deficit has widened as confirmed by newly released trade figures. The US economy’s recovery has caused imports to outgrow exports with imports up 20.5% on the same month last year and exports up only 14.3%. However, the dollar has been aided by under-confidence in the Euro following the persistent Greek situation.

Euro – European Markets

The Euro cannot shake off under-confidence as Greek budget deficits still dominate the single currency. The Euro has fallen further against the Dollar in the currency exchange market as EU Finance Ministers are meeting in Madrid today for talks on how to ease the growing debt. The Greek Prime Minister requested a meeting with the European Central Bank, EU and International Monetary fund yesterday suggesting Greece’s own appeal for the 45 billion-Euro emergency rescue package will soon materialise. This will leave Greece with an additional 11.6 Billion Euros to raise.

Other Currencies – Highlights

Currencies such as the Yen have strengthened as investors have sought the safest option in the face of a weak Euro. Elsewhere in global currency exchange, China and Brazil have given solid signals of advancing trade and energy-cooperation by signing trade agreements including plans for a Chinese steel plant in Brazil. This trend is likely to increase confidence in these emerging economies and their currencies. For the best currency exchange rates, call us now on +44 (0)20 7740 0000