Forex Markets

Posted by Nogger - a legend in his own mind at 11:25 | Categorized as

24/11/10 -- The pound has hit it's best levels against a beleaguered euro since September 21st, pressing above 1.1850 this morning. It's more to do with euro weakness than sterling strength it seems. UK Q3 GDP data came in as expected this morning, showing growth of 0.8%.

The euro is under pressure again ahead of Ireland's expected announcement detailing how it intends to cut it's deficit. The Irish government looks set to take a majority stake in the Bank of Ireland, the only major bank that they had left independent of state control.

All eyes are now on Portugal too, where a national strike is organised for today, and of course Spain.

It seems likely that further euro depreciation lies ahead.

The pound is down against the US dollar meanwhile, touching 1.5740, it's lowest in almost a month. The US unit is benefiting from a flight to safety as the situation in Asia threatens to, well Korea out of control you might say. There's nothing quite so distasteful as a despot with nepotism is there?