Euro selling eased slightly in the foreign exchange market late last night - hooray! Thanks to a new plan to reduce deficit announced by Greece, investors were able to re-introduce a small amount of risk appetite.
As protesters and demonstrators took to the streets in Athens to battle the austerity plans (including a rise of VAT from 19% to 21%), international investors became ever so slightly more relaxed in relation to the euro.
The euro wasn't able to gain against the pound, due to the latter's advances following positive UK data.
Showing posts with label buy currency. Show all posts
Showing posts with label buy currency. Show all posts
04 March 2010
17 February 2010
Euro gains after Weeks of Sell
Has anti-euro sentiment gone too far in recent weeks? Some currency exchange analysts seem to think so; and as if by magic the euro climbed on Tuesday - is risk appetite back among investors?
Greece's fiscal problems have really given the euro what some have described as a fair battering over the last few weeks. But are currency traders cautiously heading back to the eurozone single currency?
Meanwhile there is a lot of key data being announced this week, much of which will surely have an affect on the pound.
Yesterday, CPI figures were released showing that inflation rocketed to 3.5%, well above the 2% target. This didn't seem to bother markets much, though BoE minutes and retail sales figures to be announced might prove important for the pound. Will it retreat or wobble under pressure?
Greece's fiscal problems have really given the euro what some have described as a fair battering over the last few weeks. But are currency traders cautiously heading back to the eurozone single currency?
Meanwhile there is a lot of key data being announced this week, much of which will surely have an affect on the pound.
Yesterday, CPI figures were released showing that inflation rocketed to 3.5%, well above the 2% target. This didn't seem to bother markets much, though BoE minutes and retail sales figures to be announced might prove important for the pound. Will it retreat or wobble under pressure?
19 February 2009
Bank of England to Turn on the Printing Press
The Bank of England is due to introduce quantitative easing in order to try and prevent deflation in the UK. Quantitative easing is a method not used in around 30 years, and in a nutshell involves 'printing money' - by buying government and corporate bonds, the cash and credit flow to the economy increases, which in turn encourages spending and lending.
The move is due to be given the go-ahead by the government and could be put into action imminently. There are many who oppose the measure, and say that it could cause hyperinflation which historically caused some bigger disasters - even currently, places like Zimbabwe are suffering the effects of longterm inflation. There is also the risk to the currency - the pound has fallen further on the news, and surely a new influx of currency would only serve to depreciate the value of the pound? There are many who may be loathe to buy currency that is going to give no rewards.
Is the bank being reckless or is this really the best thing for the country?
The move is due to be given the go-ahead by the government and could be put into action imminently. There are many who oppose the measure, and say that it could cause hyperinflation which historically caused some bigger disasters - even currently, places like Zimbabwe are suffering the effects of longterm inflation. There is also the risk to the currency - the pound has fallen further on the news, and surely a new influx of currency would only serve to depreciate the value of the pound? There are many who may be loathe to buy currency that is going to give no rewards.
Is the bank being reckless or is this really the best thing for the country?
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