Figures in August have shown that China’s exports grew less than expected which has caused concerns in the currency market, especially for the likes of Australia who have benefitted from a strong Chinese economy. The main concern is that should the powerful Chinese economy weaken it could have a negative knock on effect for the rest of the world, while the saying goes “when America sneezes the world catches a cold” the same could now be said for China. If the global economy is going to recover from the current issues we will need to see some of the larger economies such as America, Europe and China show growth in an effort to have an increase in global trade and therefore an end to the global recession.
In Europe figures today have shown that Italy’s recession is worse than first thought. The Italian economy, one of the largest in the Eurozone, contracted by 0.8% in the second quarter of this year which is further bad news for the Eurozone which is an economy already under severe pressure. The comments recently from Mario Draghi have helped boost the Euro but figures such as this from the Italian economy has the potential to undo the positive movement on Euro exchange rates we witnessed last week.
If you need to send money abroad and are looking for the exceptional exchange rates then make sure you speak to one of our experienced currency brokers who will be happy to discuss your currency requirements and the options available to you. You can call straight through to the dealing floor for free on 0800 328 5884 or email us on firstname.lastname@example.org.