Aussie Still Strong
For those of you following the Australian Dollar it has breached the 0.94 level sooner than I anticipated - I originally said by the end of March but it raced ahead of itself as a consequence of recent chronic dollar weakness. The Aussie has also risen against the yen which tells us that risk appetite [...]
Strong Euro Threatens Eurozone Harmony
Yesterday’s dollar slump against almost every currency has raised particular alarm and tension within the eurozone. The head of airbus has already described the dollar’s decline to his company as “life-threatening”. Even Germany’s car-maker BMW has said it will be slashing 5,600 jobs and warned of more drastic action if [...]
Euro Rises to 1.50
The euro has finally decided to break out above 1.50 and assuming there is not too much nervousness then the next levels will be 1.52 to 1.54, although this morning’s comments by a member of the ECB were quite interesting. Joaquin Almunia (is he a relative of the Arsenal goalkeeper, Manuel Almunia?) is the EU’s [...]
Majors Signal Reverse
Currency markets at the moment are either flat or frenetic. It wasn’t until Thursday that both the euro and pound decided to reverse and start the climb back to 1.50 and 2.0 respectively.
In the case of the pound the reverse in fortune was attributed to better than expected retail sales, thereby restricting the BOE’s [...]