How will the Ukraine Situation Effect Currency?
Today is a quieter day in terms of economic data and so it is most likely that all eyes will be on the tensions in Eastern Europe. Yesterday afternoon it was reported that Russia had given the Ukraine a deadline to pull their troops out of Crimea however when the deadline passed last night Russia denied they have given a deadline. This morning Russia have pulled back their troops as the situation is seemingly dying down which is good news for all concern. However, tension is still rife and many of our clients are concerned as to what the impact may be on the currency markets. Firstly it seems that investors are moving funds to safe havens such as Gold and are also closing out their positions in fear of the tensions taking a turn for the worst. As a result the currency markets have remained very nervous with large swings in the exchange rates with very little warning as large currency transfers are made. I would not be surprised to see currencies such as the Swiss Franc and the US Dollar benefit from this as their tag of safe haven currencies is once again put to the test. In the meantime the tensions could put pressure on the Eurozone due to its geographical proximity to the Ukraine, if the tensions escalate it is likley that GBP and the USD also face volatility.
So, if you need to transfer funds internationally speak with one of our senior currency brokers here at Foreign Currency Direct plc. You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively email me directly on email@example.com