What has been happening in this week’s currency exchange news and how will it affect your Orgiva Property, Lanjaron Property or Lecrin Valley Property?
The Pound experienced extreme volatility on Friday after the release of Kwarteng’s ‘Mini-Budget’. The market reacted negatively to the Tax-Cuts, meant to incentivise growth in the UK. Unfortunately, the bad news doesn’t stop there, as Sterling hit an all-time low against the USD as trading began this morning dropping a total of 75 since the markets opened on Thursday. A similar trend can be seen with GBP/EUR, as the Pound continues to weaken against the Euro this morning. The reduced confidence in Sterling is backed by Kwarteng’s statement on Sunday informing the UK that he would be pursuing more Tax Cuts.
The Euro has fallen against the strength of the US Dollar Since trading began on Friday. The gain against Pound Sterling can be tied to investors pulling funds out of the UK and reinvesting them abroad. ECB President Lagarde is expected to speak for the next three days – along with other ECB members – bringing added volatility to the Euro. German retail sales are released on Friday morning, before Eurozone HICP (a measure of changes in the price of goods and services) in the afternoon, both of which could stimulate end-of-week volatility.
USD: The Dollar has seen a huge increase in strength against both GBP & EUR. As the US continues to increase Interest rates and tow the line between Recession & inflation, the dollar remains King. US Treasury Bonds have continued to soar with the prospect of additional interest rate hikes from the FED. The added confidence in the greenback has seen the Safe-haven currency climb to a new two-decade high against a basket of major currencies – and an all-time high vs GBP.
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