Reports coming out of Europe recently have stated that Greece has only 10 days left until it needs it next tranche of money from the Eurozone bailout package or else it will be effectively bankrupt. This news has further damaged the confidence investors had in the single currency economy and as a result we have seen Sterling strength against the Euro. However, the UK faces a large number of issues itself and so any gains against the Euro are likely to be minimal in the short term as we face high unemployment, spiralling debt levels and stalling growth. All eyes will be on Europe over the next 10 days to see if and when Greece gets its next bailout amount, we can expect further volatility over this period so stay in close contact with your currency broker.
Major news yesterday also came from the Central banks of England, Japan, Switzerland, Canada, Europe and America as they devalued the interest rate on USD swaps) in an aim to stimulate banks lending to businesses therefore helping economies to grow and helping reduce the debt deficit which is crippling so many of the major world economies. Many people have taken this as a message that the Central Banks want countries to put more money into America to help the largest economy in the world grow and therefore boost the global economy. More synical people out there may also think this is a sign that the Central Banks are steering funds away from the riskier economies which may now include the UK and Europe. Either way this news yesterday had a positive effect on the stock markets and for those looking to buy US Dollars.
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