Following the news that Barclays Chairman and Chief Executive have both stepped down following the inter-bank interest rate fixing scandal today will see Bob Diamond, ex Chief Executive or Barclays, be questioned by MP’s. The questioning is likely to be focussed around who knew about the fixing as there has been talk that this could go all the way back to both Whitehall and the Bank of England. A scandal like this could really damage the UK economy and therefore Sterling exchange rates at a time when the economy is in a fragile position and can barely afford such scandal. The questioning is likely to last for quite some time today and so it may mean we could see a lot of unpredictable volatiity over the course of the day. Keep in close contact with your account manager to be kept informed of all the latest news and any relevant currency movement.
In other news the markets are still waiting the interest rate decisions for both the UK and Eurozone tomorrow and while we discussed there is a chance of further QE for the UK we have heard quite strong rumours that there is a chance of a cut in European interest rates. A cut in rates for the EU could lead to Euro exchange rates weakening so tomorrow lunchtime when the two rates of exchange could be incredibly important in determining the short term currency trends. Again if you need to buy Euros and are looking for the best exchange rates make sure you speak to one of our experienced currency brokers so they can discuss your currency requirements and all the options available to you. You can call straight through to our dealing floor on 0800 328 5884 or email us on email@example.com
In the meantime today is US Independence Day so the American market will be closed for the day.