Sterling Euro Hits 1.25
Today the markets have opened at 1.25 following comments from Mark Carney, the Govenor of the Bank of England, last night that interest rates in the UK are likely to go up sooner than the markets expect hinting that interest rates could be hiked this year. Mr Carney stated that the decision to raise interest rates is becoming more balanced and considering it had been rumoured rates would be raised in Spring 2015 there is now a chance we will see rates raised from the current record low level of 0.5% within the next 6 month which is good news for savers but not such good news for those with tracker mortgages. However, as a high interest rate both increases the demand for that currency due to the strong returns and also shows the confidence the Central Bank have in the countries economy and as a result strengthens the currency and this is why we have seen the Pound push up to the highest levels in nearly 2 years.
So, if you need to buy Euros call us today on 01494 725353 or email us on firstname.lastname@example.org
FCD Currency World Cup
Following yesterdays examination of the currencies of the two countries playing in the opening match of the world cup it was clear that the Brazilian Real was the stronger of the two currencies and so following this Brazil, the FIFA World Cup hosts, won their opening game. Today we are examining the currencies of Chile and Australia who play this evening:
Chilean Peso (CLP)
The Peso has been in circulation since 1975 and is divided into 100 centavos although due to the weakness of the currency there are atcually no centavo denominated coins in use. Currently there are 941 CLP to £1 highlighting just how weak the currency is. Despite this the Chilean economy is considered one of the most stable and prosperous in South America and actually leads the way in income per capita, economic freedom and low perception of corruption although the inequality in the country is vast, higher than even that of Brazil with 2.7% of its population living on less than $2 a day. Some of the main industries that make up the majority of the overal economy are its Salmon farming, forestry, copper mining and wine production. So, despite a weak currency the Southern America economy is strong.
Australian Dollar (AUD)
The Australian Dollar is the fifth most traded currency in the world and accounts for 7.6% of the daily forex global transactions. With high interest rates and a very strong mining industry the Australian economy has remained robust during the economic crisis. However, with Australia so dependent on their export market to keep their economy strong the Reserve Bank of Australia (RBA) had to intervene to prevent the Dollar becoming too strong and therefore making Austrailan goods and services too expensive when exported and as a result we saw the AUD weaken significantly over the past year until recently the RBA stated that they were happy with where the currency was and since then the Dollar has started to slowly strengthen back against most of the major currencies.
So, comparing the two currencies and economies it is clear that the Australian is the stronger of the two with 521.64 CLP to 1 AUD however the strong and importantly stable Chilean economy does certainly give Australia a run for its money however, it has to be said the Australian Dollar just pips the Peso. Now while the AUD is the stronger of the two currencies it may be a little bit of a surprise if the match follows suit and we see an Australia win, but this is the world cup and you just never know!