US Dollar back at the top!September 11, 2014 11:38 am
Great news if you are holding US Dollars, the currency is at its strongest against many of its major counterparts. Now is the time to sell your Dollars or if you do not have an immediate need, consider booking a Forward Contract. This will secure your exchange rate for up to 12 months for you to use whenever you do have a foreign exchange need.
The Pound came under heavy selling pressure after a poll found that 51% in Scotland favoured voting for independence from the United Kingdom in a referendum set to take place on September 18th.
The selling pressure is a reflection of traders unwilling to take risks ahead of the potential break-up of the UK.
In the last couple of months EUR/USD has dropped from above 1.34 to below 1.30. A recent factor which contributed to the weakening of the Euro was the European Central Bank engaging in quantitative easing. Plans are to purchase private sector bonds and further cuts in the already low interest rates. EUR/USD fell from around 1.315 to around 1.295 as soon as the measures were announced.
This follows speculation that the growth of Canadian economy is lagging behind that of the US, the nation’s largest trading partner. With positive date emerging consistently from America, it’s likely the pair will continue its upward trend.
Get in touch with FTT Global if you would like advice on when to exchange your currency. If you’re faced with a falling market, don’t forget our Risk Management Tools can help avoid losses and protect your money
Categorised in: News
This post was written by Kayleigh Driscoll