Merve’s a Swerve but Draghi is a Dragon!
After keeping the Bank of England Base Rate at 0.5%, Mervyn King, the Governor of the Bank of England, avoided further sterling uncertainty as was expected. However, Mario Draghi in his address on behalf of the Eurozone caused a move back in to the mid 1.18s (GBP/EUR) which compounds the Euro weakness of the last two weeks. Draghi explained that initial Cypriot plans to tax its savers were “not smart to say the least”, but insisted that the Cypriot bailout was not a blueprint for further economies that are black marks on the Eurozone debt list.
Kurodas BoJ Job Aggressive!
Bank of Japan (BoJ) headed by the newly instated Haruhiko Kuroda, have announced that they aim to aggressively achieve their 2% inflation target. They have set themselves very strict government spending targets, with a view to bringing down interest rates and stimulate lending. Markets opened today at the 140.381 GBP/JPY, but the pair has moved strongly in favour of sterling by 4%! This indicates how important regular contact with your currency dealer is, as that would equate to over £8,000 on a £200,000 transfer.
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