Jul
24
EURO Timeline
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The euro, the dream of many a politician in the years following World War II, was established in Maastricht by the European Union (EU) in 1992.
To join the currency, member states had to qualify by meeting the terms of the treaty in terms of budget deficits, inflation, interest rates and other monetary requirements.
Of EU members [...]
May
14
What if Greece Exits?
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From The Economist Online May 11th 2012, 0:22 by A.P. See original article
As the Economist argues in our briefing this week, a Greek exit from the euro zone would not just be chaotic for Greece itself but would also invite questions about the status of Portugal, Ireland and others. So what would policymakers have to [...]
Nov
29
Is it the end of the Euro?
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EVEN as the euro zone hurtles towards a crash, most people are assuming that, in the end, European leaders will do whatever it takes to save the single currency. That is because the consequences of the euro’s destruction are so catastrophic that no sensible policymaker could stand by and let it happen.
A euro break-up would [...]
Aug
23
Market Forecasts Aug 2011
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2011 Q3
2011 Q4
2012 Q1
2012 Q2
GBP vs
Eurozone (EUR)
1.16
1.15
1.15
1.15
US (USD)
1.65
1.66
1.66
1.66
Canada (CAD)
1.57
1.61
1.66
1.66
Switzerland (CHF)
1.28
1.32
1.38
1.38
Sweden (SEK)
10.56
10.35
10.24
10.12
Norway (NOK)
8.82
8.63
8.57
8.51
Japan (JPY)
125
119
119
119
Hong Kong (HKD)
12.87
12.95
12.95
12.95
China (CNY)
10.56
10.54
10.46
10.38
India (INR)
71.78
69.72
69.72
69.72
Australia (AUD)
1.73
1.74
1.74
1.84
New Zealand (NZD)
2.09
2.1
2.1
2.1
Market forecasts typically prove to be unreliable – BUT whilst they should not be relied upon they should certainly be considered when making the decision to actually buy a given curreny at any time or indeed buy [...]
Aug
4
Why are interest rates relevant?
Filed Under Currency UK resources, In depth discussion | Comments Off
Interest rates, inflation and exchange rates are all highly correlated. By manipulating interest rates, central banks exert influence over both inflation and exchange rates, and changing interest rates impact inflation and currency values. Higher interest rates offer lenders in an economy a higher return relative to other countries. Therefore, higher interest rates attract foreign capital [...]
Jul
15
Eurozone bank stress test
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FXstreet.com (Barcelona) – With the market jittery over the risks of contagion, the European financial sector is being put under the spotlight as another round of bank stress tests are to be released this Friday. In particular, the Spanish and Italian banking sectors are of noted importance as they both have seen a substantial loss [...]
Feb
22
Exporters should act now…
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Exporters Should Act Now to Beat Rising Interest Rates, Says CurrencyUK – 22 Feb 11
As inflation continues to rise, speculation is rife that the Bank of England (BoE) is set to raise interest rates three times this year, with the first as early as May. Foreign exchange (FX) broker, CurrencyUK, is urging exporters to book [...]
Dec
3
What is Purchasing Power Parity?
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What is Purchasing Power Parity?
One of the oldest and most basic fundamental approaches to determining the “fair” exchange rate of one currency to another relies on the concept of Purchasing Power Parity. This approach says that an identical product should cost the same from one country to another, with the only difference in the price [...]
Sep
22
Exchange rate opportunities for Importers and Exporters
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Not to be considered advice but maybe food for thought…
Jun
21
How will the budget affect exchange rates
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The answer depends on where the widely expected cuts actually appear…read more