Currency Market News - Euro hits new records!

Posted 14 November 2008 at 15:16

Posted in Currency Exchange

Currency Market News


Submitted by:      Foreign Currency Exchange

Sterling has continued to weaken off as it comes under heavy, sustained selling from the Foreign Exchange markets following the Bank of England Inflation Report, weak housing data and weak employment figures seen earlier this week.

As the GBP/EUR exchange rate hits all time lows and the GBP/USD rate hits a 6 year low there seems to be less and less technical support for traders to latch onto and so the selling continues, moving the exchange rates lower at a fast pace.

The obvious concern in the markets is that the Bank of England will look to cut interest rates further and there is even some speculation of a zero interest level! This means that investors will earn less yield on their deposits and therefore they look elsewhere for a better return in interest as well as a safe haven for their investments. This in turn weakens the currency.

This is of course not good news for all clients looking to make currency purchases using sterling, but these trends may well continue and we may see sterling lose further ground. With that in mind, it is extremely important for all clients to contact their broker to discuss their future purchases, regardless of volume or timeframe.