Lost Password? No account yet? Register

Foreign Currency Exchange

Instant Currency Quote

GBP-EUR Euro suffering

PDF Print E-mail
Tuesday, 07 October 2008

Last week we saw the Euro suffer one of its worst declines against a basket of major currencies, especially the US Dollar, falling under even more pressure from global credit jitters. The single currency also lost further ground after the ECB left interest rates on hold at 4.25% last Thursday.

The UK economy is also suffering from the credit fallout with mortgage approvals hitting a record low. The second quarter housing equity withdrawals have contracted for the first time in nearly a decade and the third quarter BoE credit conditions survey reported that the lending environment is likely to worsen in the near future. As a result, last week we saw Bradford & Bingley, the second major British financial firm, being nationalized as a last resort bailout.

Over the weekend, we saw the rescue package for Hypo Real Estate fall short as new liquidity gaps emerged, which led the government to issue guarantees for all bank deposits throughout Germany. Mounting turmoil throughout Europe has become a growing concern as the ECB noted increased downside risks for growth, and went on to say that ‘economic growth is slowing down significantly.’ The comments suggest that the ECB may look to lower the benchmark interest rate at their next meeting, which would only fuel bearish sentiment for the euro in the near-term.

Amid expectations of a rate cut by the ECB, U.K. Chancellor Alistair Darling announced that the government backs the BoE’s neutral policy stance, and went on to say that the government will take the necessary steps to counter the sharp decline in Europe’s second largest economy. The comments suggests that the BoE may have more room to hold the benchmark interest rate steady at 5.00% for the remainder of the year, with the government scheduled to release a new outline on Wednesday to how they will respond to the financial crisis.

» No Comments
There are no comments up to now.
» Post Comment
Only registered users can write a comment.
Please login or register.
 
< Prev   Next >

ECB Exchange rate

ECB Exchange Rates
Currency EUR 
2009-01-06
USD 1.3582
JPY 126.81
 BGN 1.9558
 CZK 26.760
DKK 7.4488
 EEK 15.6466
GBP 0.93580
 HUF 267.13
 LTL 3.4528
 LVL 0.7070
 PLN 4.1360
RON 4.0490
SEK 10.7075
 SKK 10.7075
CHF 1.5060
 ISK 1.5060
 NOK 9.3950
 HRK 7.3026
 RUB 39.5915
 TRY 2.0897
AUD 1.9189
 BRL 3.1619
CAD 1.6475
 CNY 9.2781
 HKD 10.5303
 IDR 15076.02
 KRW 1799.52
 MXN 18.5292
 MYR 4.7503
 NZD 2.3301
 PHP 64.080
 SGD 1.9987
 THB 47.462
ZAR 12.8655
  12.8655

Currency Feeds

although   aud   aussie   boe   cad   canada   canadian   central   credit   currencies   currency   cuts   data   due   ecb   economic   economy   england   eur   euro   eurozone   expectations   expected   figures   further   gbp   global   growth   housing   however   inflation   into   investors   its   kiwi   likely   looking   markets   monetary   months   news   not   nzd   outlook   percent   price   prices   quarter   rate   rates   recession   remain   risk   sales   sterling   strength   therefore   trades   trading   usd   zealand  

Foreign Currency Exchange - EMYC.