Last night the Federal Reserve (FED) released their minutes from the first US interest rate decision which showed that they expected to keep interest rates on hold at least until the end of 2014 – a sign that the US economy is still under significant pressure. This news has helped push Sterling Dollar exchange rates up presenting some good opportunities for those clients looking to buy Dollars.
Following the release of the minutes Chairman of the FED Ben Bernanke announced that the central bank was prepared to inject financial stimulus in the short term to help the US economy stave of recession in what has been termed by economists as QE3 (the third round of Quantitative Easing in the US). As regular readers will know QE can weaken the currency in question so just the mention of QE3 in America could result in Dollar weakness and therefore some good buying opportunities.
Meanwhile in Europe key talks are expected to resume in Greece between the Greek government and its private creditors as they seek to find a resolution to Greek debt. It is hoped that the creditors will write off a significant part of the debt which should then allow Greece to receive its next tranche of bailout funds to ensure they do not default on their debt which repayment is due before the end of March. Talks are due to begin on Thursday afternoon and any news from these talks could have an impact on Sterling Euro exchange rates. So, if you are looking for the Euro exchange rates ensure you speak to one of our experience currency brokers today on 0800 328 5884 or email us on firstname.lastname@example.org so we can discuss the currency market outlook and all the options available to you.