by Josh Ferry Woodard
The Pound, US Dollar and The Euro exchange rates today
Yesterday French President Nicolas Sarkozy and German Chancellor Angela Merkozy picked up the resuscitation baton and continued the long-distance marathon towards economic recovery. This was their 9th set of talks in the last 12 months. The meeting ended characteristically inconclusive; the pair dubbed ‘Merkozy’ reiterated the most pressing points – most of which were already known – on the European agenda.
Merkel warned Greece of the urgency towards which they must impose fresh budget cuts and agree terms with private sector lenders in order to receive their latest aid tranche. Last week Greek Prime Minister Lucas Papademos issued a statement to Greek union and business leaders explicitly addressing this point:
“We need to give out a little so we don’t lose a lot… Without this agreement with the troika and subsequent financing, Greece in March faces the immediate risk of a disorderly default.”
The pair talked of the new EU ‘fiscal compact’ in an attempt to prove to investors that the Eurozone has a clear revival path. The measures, which uninspired investors when they were first unveiled in December, are being prepared for a launch in March at the latest – with a small possibility of implementation at the end of January.
The controversial Tobin tax – the one that UK Prime Minister David Cameron vetoed at the EU summit in Brussels last month – was discussed by the Franco-German leaders. They reaffirmed their desire to employ the EU-wide financial transaction tax, even though Cameron had restated his absolute objection to it in a press conference a day earlier.
Investors reacted tentatively to the talks; an obligatory set of Euro exchange rate buys moved the single currency up by a quarter of a yen, half a US cent, and stemmed the Pound’s 16-month high surge.
This morning the Pound is trading just below yesterday’s rate at 1.208 against the Euro exchange rate, and is minimally improved against the US Dollar exchange rate at 1.546.
Today’s Exchange Rate Data
AU 00:30 – Australian Building Permits (November)
CH 04:05 – Chinese Trade Balance (December)
CA 13:15 – Canadian Housing Starts (December)
US 15:00 – US Economic Optimism (January)
AU 22:30 – Australian Westpac Consumer Confidence (January)
- The Euro strengthened against Sterling during trading yesterday
- Pound Sterling, the Euro and US Dollar exchange rate news – The Pound remained in a tight trading range against both the Euro and the U.S Dollar
- Pound Sterling, the Euro and US Dollar exchange rate forecast – The Pound actually rallied against the Euro for the first time in six trading days
- The Pound rallied against the Euro exchange rate for a third straight trading day
- Pound Sterling, the Euro and US Dollar exchange rate news – The Pound rallied strongly against the Euro exchange rate