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BenjaminFX
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Another crucial week for the Euro zone
Efforts are being made by EU leaders to aid Portugal as the country’s government collapses amidst it’s plan to tackle the current debt crisis.
Jose Socrates has been re-elected as leader of Portugal’s Socialist party on Sunday, following his resignation as Prime Minster four days prior to this.
Mr Socrates’ recent actions have clearly labelled his opinion when it comes to accepting financial aid, and going forward he is vowing to run in a parliamentary election on a platform opposing a bail out package for the Iberian Peninsular.
With no new austerity measures set it won’t be long before the country will have to accept relief from the International Monetary Fund.
Meanwhile, as part of his 10 day tour, the Prince of Wales is due to meet with Mr Socrates tomorrow to boost trade links with the country.
Portugal is currently the UK’s 11th largest export market within Europe, and also Britain’s oldest ally, thanks to the Anglo-Portuguese Treaty of 1373, the oldest active treaty in the world.
With very little Euro zone economic data due for publication, the knock on effect to the value of the Euro will no doubt be felt this week.
Calls for review of the $600bn QE2 program
The US Dollar has retraced previous levels as investors speculate that positive economic releases will put pressure on the Federal Reserve to impose monetary tightening rather than continue with the planned asset purchase.
Added to this, St. Louis Federal Reserve Bank President, James Bullard, has publically made hawkish comments that the FED should reconsider plans for the second wave of Quantitative Easing.
Mr Bullard, who in July, became the first FED member to call for the purchase of Treasury bonds now believes that regular, monthly meetings should be held to discuss the level of stimulus the US recovery requires.
However, the FED, including Chairman Ben Bernanke has given no such indication of it’s willingness to derail the current $600 billion bond buying program.
Going forward, this week’s releases of key US economic data could strengthen the greenback and add support to its current level.
Foreign Exchange Rates Table
Currency Pairs Current Mid-Rates at 9.00am
GBP - EUR 1.1357
EUR - GPB 0.8805
GBP - USD 1.5982
EUR - USD 1.4072
GBP - AUD 1.5512
GBP - CAD 1.5674
GBP - NZD 2.1217
GBP - CHF 1.4698
GBP - HKD 12.4708
GBP - NOK 8.98
GBP - SEK 10.2115
GBP - ZAR 10.97
GBP - THB 48.38
GBP - AED 5.8701
GBP - MAD 12.8135
GBP - ILS 5.6614
GBP - TRY 2.4821
GBP - JPY 130.56
Efforts are being made by EU leaders to aid Portugal as the country’s government collapses amidst it’s plan to tackle the current debt crisis.
Jose Socrates has been re-elected as leader of Portugal’s Socialist party on Sunday, following his resignation as Prime Minster four days prior to this.
Mr Socrates’ recent actions have clearly labelled his opinion when it comes to accepting financial aid, and going forward he is vowing to run in a parliamentary election on a platform opposing a bail out package for the Iberian Peninsular.
With no new austerity measures set it won’t be long before the country will have to accept relief from the International Monetary Fund.
Meanwhile, as part of his 10 day tour, the Prince of Wales is due to meet with Mr Socrates tomorrow to boost trade links with the country.
Portugal is currently the UK’s 11th largest export market within Europe, and also Britain’s oldest ally, thanks to the Anglo-Portuguese Treaty of 1373, the oldest active treaty in the world.
With very little Euro zone economic data due for publication, the knock on effect to the value of the Euro will no doubt be felt this week.
Calls for review of the $600bn QE2 program
The US Dollar has retraced previous levels as investors speculate that positive economic releases will put pressure on the Federal Reserve to impose monetary tightening rather than continue with the planned asset purchase.
Added to this, St. Louis Federal Reserve Bank President, James Bullard, has publically made hawkish comments that the FED should reconsider plans for the second wave of Quantitative Easing.
Mr Bullard, who in July, became the first FED member to call for the purchase of Treasury bonds now believes that regular, monthly meetings should be held to discuss the level of stimulus the US recovery requires.
However, the FED, including Chairman Ben Bernanke has given no such indication of it’s willingness to derail the current $600 billion bond buying program.
Going forward, this week’s releases of key US economic data could strengthen the greenback and add support to its current level.
Foreign Exchange Rates Table
Currency Pairs Current Mid-Rates at 9.00am
GBP - EUR 1.1357
EUR - GPB 0.8805
GBP - USD 1.5982
EUR - USD 1.4072
GBP - AUD 1.5512
GBP - CAD 1.5674
GBP - NZD 2.1217
GBP - CHF 1.4698
GBP - HKD 12.4708
GBP - NOK 8.98
GBP - SEK 10.2115
GBP - ZAR 10.97
GBP - THB 48.38
GBP - AED 5.8701
GBP - MAD 12.8135
GBP - ILS 5.6614
GBP - TRY 2.4821
GBP - JPY 130.56
