Monday 24th August 2015
It’s incredibly volatile on the currency markets today. Just look at what has happened with Sterling/Euro rates, falling from 1.38 into 1.34's:
When I opened the trading floor this morning at 8am, GBP/EUR was at 1.38 where it ended on Friday. We have seen the rate drop throughout the day, and at 2.15pm it plummeted to as low as 1.3455 before recovering back into the €1.35’s. This is a huge drop and other currency pairs are seeing extreme volatility, due to global stock rout and economic uncertainty.
The FTSE 100 has lost 10%, as investors dumped riskier assets and flocked to currencies seen as safe havens on fears about a slowdown in the Chinese and global economies. The Euro has been a huge benefactor, as usual safe havens like Sterling and the US Dollar are suffering. This is because the global slowdown means interest rates are no longer likely to go up in the UK or US any time soon.
As the Euro gains significant strength, commodity based currencies like the Australian Dollar, New Zealand Dollar and Canadian Dollar continue to weaken as oil prices and other commodities continue to fall in value.
Sterling/Dollar has gone from $1.56 to $1.58 just today, as the Dollar weakens due to the global turmoil. Just look at some of the movements we've seen during trading today:
GBP/USD rises to $1.58:
GBP/NZD has risen by 10 cents in the last half an hour:
GBP/AUD rises from $2.16 to $2.22:
A panicked and interesting day on the currency markets.
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Labels: Best Exchange Rates, Currency, Euro predictions, Forecast, GBPAUD, GBPEUR, GBPNZD, GBPUSD, Volatility, Why has Pound fallen