Skip to content

Sterling regains some lost ground from last weeks losses

The scramble for the safe haven status of the Dollar has rebated slightly as investors gain further confidence that the problems in the Gulf States will be contained to the region.

From the news surrounding Dubai’s debt problems the UK stands to suffer the most as UK banks exposure to Dubai is far greater than any other major economic power.
However Sterling has bounced back from low 1.09’s to around the 1.10 mark against the Euro, and from 1.6280 to 1.6650 against the USD in the past few days as the initial fears of a global crisis in the Emirates ease. 

Earlier in the week the Australian Central Bank raised their interest rates for a record  third consecutive month due mainly to solid export demand from Asia, by another 25 points to 3.75%.

As the only major developed economy to survive the global recession without entering technical recession, the Aussie Dollar has performed remarkably over the past year or so, appreciating over 25% against the Pound. 

The financial markets seem to be following a familiar pattern through the economic crisis.

Any negative data, news etc seems to strengthen the USD, with any positive, or stronger than expected data seeing other major currencies appreciate.

A trend to take note of if it you have an FX requirement.

Thursday and Friday are poised to be important days for the USD, the EUR and the Pound as a range of economic data will give a strong indication on the relative strengths and weaknesses of each in the run up to Christmas.

For any currency queries please do not hesitate to give Axia FX a call on 02070937855, alternatively, visit our website