Steling to Euro to mirror 2011

2011 was quite a year for the Euro. It began the year in far better shape than its neighbours, the British Pound and US Dollar. This was because the European Central bank had refused to follow the Bank of England and Federal Reserve in printing large amounts of new money and had kept interest rates at the...

Currencies – 1382

BANKS jumped at the chance of “Free Money” last week as the European Central Bank flooded the markets with low interest 3 year loans. A total of 523 banks borrowed €489.2bn in the ECB’s biggest ever funding exercise. The total surged over €100bn above expectations as regulators encouraged lenders...

Cracks appearing in the coating

ONE of the most difficult questions our clients have been asking over the past six months is “if the media are to be believed, the Euro-zone is on the verge of collapse. If this is the case, why does the Euro continue to trade so strongly against the Pound?”. It’s a good question, and I think one that...

To default or not to default – that is the question

AS the markets focus once again on Greece’s ability to repay its debt, pop up in both Spanish and Italian yields a couple of weeks ago caught the markets by surprise and posed the question –‘Could Spain be the next bailout candidate?’ Spain has always been the canary in the coalmine and if it ever...

Ignore the facts… buy the Euro!

AT the start of the year the headlines were full of concerns about the Euro especially the southern states being unable to cope with the mountain of debt and the ECB unable to prevent a total loss of confidence. Well we are now on the third roll out of a rescue fund/bailout package, (call it what you like)...

Ask the expert

WELL if you thought 2010 was a tough year, 2011 will probably bring much the same for the currency markets, with volatility certain to be an ongoing theme. Looking back at 2010, until the Eurozone debt crisis reignited at the start of October, Sterling had been rapidly losing ground to a dominant Euro. In...