Your Weekly Currency UpdateDecember 18, 2014 1:16 pm
GBP/EUR rates have spiked back above 1.26 following the release of the latest Bank of England (BoE) minutes. These came out as expected and showed that 2 members still voted in favour of an interest rate hike, with 7 members voting against this. The only negative was that UK unemployment came out slightly worse than expected at 6%, although this was countered by a rise in UK wages.
The Euro has been up and down for the past 3 months and currently steadily increasing. This is good news for people wanting to convert GBP into EUR over the Christmas Period.
Oil prices have been falling which puts the US in a much stronger position in the economy. When oil prices fall it helps to strengthen the US Dollar. This is because the US is a huge importer of oil so when the prices are low this means the US can import the oil more cheaply and then use cheap oil to increase manufacturing and increase growth.
This has a huge advantage for people looking to purchase US Dollars.
The Bitcoin halved in value over 2014 which could result in disaster for the currency. It’s been a very bad investment for people who have purchased any thinking the value will increase. In the first month Charlie Shrem, a Bitcoin foundation board member, was arrested for alleged money laundering and over the rest of spring the currency was rocked by repeated thefts and hacking scandals.
If you held one bitcoin at the beginning of 2014, you would have lost 52% of the value of your investment.
Categorised in: News
This post was written by Kayleigh Driscoll