Category: Forex news

US Dollar May Rise as SGD Falls on US-China Woes

Chinese currency volatility is causing the US dollar to fall against other major currencies, and the US dollar may rise again in the wake of the ongoing USD-SGD (Singapore Dollar-SGD) crisis.

The markets fear that China's continued leverage has reached a point that it will lead to instability, including a serious shock to the financial system. Over two years of over-leveraged growth have brought about a fall in the exchange rate, and that decline may continue for several months.

On August 10, the USD/SGD plummeted to its lowest level since January 2020. With the USD/USD now well below the level at which it was valued during the Asian Crisis, the US dollar may rise again after the crisis subsides. Further weakening of the dollar is likely to cause further losses for the Asian currencies, including the Japanese Yen, Hong Kong Dollar, and South Korean Won. By September, the USD/SGD will have recovered somewhat from its recent lows.

US stock markets are expected to follow the trend and fall in response to the lower value of the US dollar. However, a more important reason for the decline in US stock prices is the uncertainty that the turmoil in the Chinese economy is creating in the US stock market.

Many investors are so concerned about the possible repercussions of the crisis in China that they are selling US assets. They are less concerned about what happens to US assets if China stays on the brink of default. This is why the fear of a recession in China has triggered large sell offs in US stock markets.

An economic downturn in China could prompt capital flight to lower the value of the US dollar, especially given the trade surplus with China and the strength of the US dollar. A worse outcome would see the US dollar fall significantly in relation to the greenback. An economic recession in China would see a dramatic increase in capital flight and forced capital outflows from Chinese institutions.

Capital flight from China is closely connected to the question of how the country plans to repay its debts. Capital flight from China is particularly worrying because the country's lenders are expected to respond very quickly in order to preserve their investments. The other major concern is that capital flight from China could potentially create a liquidity crunch that will cause further volatility in the financial markets.

China has been careful to avoid an external default, which is likely to lead to a rise in capital flight from China, but capital flight will be worse than normal. Many countries are facing capital flight as they look to raise additional funds to help them avoid default and maintain their current level of international reserves.

It is important to note that the fall in the value of the Chinese currency will only have limited impact on capital flight from China. The most obvious factor that will remain constant is that capital flight from China will still be funded by Chinese assets. Therefore, it appears that China's financial system remains resilient.

To the extent that capital flight is driven by the increase in the risk premium, however, this could be much more problematic for the Chinese banking system. Investors are increasingly inclined to accept the higher risk of owning a reserve currency. If the risk premium increases due to another financial crisis, it is likely that capital flight will increase significantly in the near future.

When capital flight is experienced by a large and diversified country such as China, it can lead to a serious financial crisis. In addition, China's capital flight may also be accompanied by a collapse in its currency.

Capital flight can also be considered a form of default, where a country is forced to withdraw reserves from the international banking system. By being forced to withdraw reserves, a country becomes dependent on the ability of other countries to maintain or increase their levels of capital, as it is unable to do so itself.

The potential for capital flight from China is likely to affect capital markets across the world. Capital flight may exacerbate currency movements and cause significant destabilization to the global financial system.

GBP/USD Under Pressure, EU-UK Trade Talks Need a Reboot

GBP/USD under pressure, EU-UK trade talks need a reboot - that is the headline you'll find on many currency exchange trading systems' graphs. This divergence in the behavior of the two major world currencies has been rising steadily and seems to be making traders "appear" to "see" it, which they are.

The European Union and the United Kingdom of Great Britain and Northern Ireland are headed for a "standstill" in their negotiations for the U.K. to leave the European Union. The net result will likely be a loss of trade opportunities for British businesses. It should be noted that even as the U.K. becomes more isolated in the world, the U.S. dollar is no longer weakening with respect to the euro.

A global financial climate that is full of uncertainties is not always a very good thing for investors. If the UK "goes", all the other members of the European Union might go, too. That means a strengthened U.S. dollar versus the euro - thus, more Americans buying more of the products and services imported from the U.K.

We're living in interesting times, indeed. The pound sterling is dipping against the dollar but hasn't totally collapsed yet. The only question mark for the market is how far the price of imports can be reduced when the U.K. will no longer be part of the single market, leaving it open to tariffs.

GBP/USD is now moving at a strong incline, following developments over the weekend. It is very likely that the current set of negotiations in Brussels between the EU and the U.K. will yield some kind of settlement agreement. In this article we will examine what it means and how investors should react to the latest development. However, we would note that it is not uncommon for the market to react very negatively to particular developments in the financial world, and indeed to this point this is just one of several very significant news stories.

There's no reason to be fearful of the outcome of the negotiations, of course. It should be noted that those who are urging the British to leave the EU would do well to read the tea leaves and watch the clouds. Again, the markets have not taken this latest development too well.

GBP/USD closed below the psychological level of 1.0894 and was now moving up for the first time in two days. All of the analysts who have recently issued technical analysis signal lines for this pair should be re-assessing their recommendations.

Traders in the European Union are feeling "under pressure" from the potential volatility created by the Brexit vote. The low-hanging fruit has already been picked by the Europeans and investors are understandably trying to take advantage of the situation to make more money.

That's one reason why the currency market has become so active recently. More currency pairs are showing signs of weakness, while a few have shown signs of strength. Here's a handy summary chart to summarize the dynamics:

In terms of the pound and the euro, the result of the British referendum vote is causing the two to move together in different directions. GBP/USD has already turned lower following news that the EU will impose tariffs on any UK exports that it considers to be subsidised.

GBP/USD is already moving up about half a cent after the European Commission announced that it will outline a plan for the U.K. to remain within the single market - without freedom of movement. The message to the pound is pretty clear: if you want to make some money, exit the EU.GBP/USD has been way too reactive recently to a complicated story like the currency negotiation in Brussels. If the market starts to calm down in the next couple of hours, it should be considered a buy or sell depending on how you like your risk profile.

British Pound (GBP) Latest: EUR/GBP Stable Despite German Court Ruling

The pound is likely to remain a benchmark in financial markets, despite the recent German court ruling, according to analysts. The high-profile case, involving a former high-ranking Bank of England official's allegation that Britain's monetary policy is to blame for the recent devaluation of the currency, continues to make headlines, even though it was decided against in February. Even so, the fall in the value of the pound was due in part to the British economy and the extent of its dependence on the banking sector.

Speaking at an event in London on Thursday, Martin Selmayr, the president of the European Central Bank (ECB), described the legal issue as a "distraction" for the wider issue of the role of banks in determining the value of the British pound. He said the German court decision "should have no impact on the credibility of our monetary policy" and expressed confidence that the ECB would eventually prevent the risk of a repeat of the last crisis. Mr Selmayr also suggested that the political debate over the future of the pound is likely to slow economic growth this year.

This in turn might mean that the rate of inflation will rise, especially as inflation expectations are being affected by this dispute. This may in turn affect the ability of the Bank of England to control inflation, despite the benefits of its quantitative easing programme. John Longworth, a currency strategist at J.P. Morgan in New York, says that although the current volatility will not affect the underlying fundamentals of the British economy, the debate over the future of the pound is likely to affect future conditions.

"It seems likely that it is the political sensitivity of the issue, which will act as a negative at the moment and help push down the rate of inflation, which we expect to occur this year," he said. "But from the current perspective, it looks to be possible that the political impasse will not remain a problem for quite some time. Once the political impasse has been resolved, I don't think that the underlying economic conditions will actually change as such." However, he says the Bank of England could decide to expand its stimulus programme later this year, if the political barriers are removed.

Sterling today, is trading at around $1.06, following Wednesday's weak open and stronger trades on Thursday. This suggests that the drop in value of the pound during the recent political crisis has already subsided.

Although there have been reports that the UK might leave the European Union and, consequently, the European Central Bank could print more money to prop up the euro, such a move would hardly have an impact on the competitiveness of the UK economy, according to David Blanchflower, the outgoing chief economist at the Bank of England. He says there is a "reasonable degree of justification" for the Bundesbank to put pressure on the Pound, which could still bring significant improvement to the country's trade position.

But with the crisis in the Eurozone and the uncertainties created by the continuing downturn in the global economy, it will take time to create a situation where all the economic circumstances are more conducive, according to Mr Blanchflower. In fact, as he put it, the current level of uncertainty in the UK will add to the level of uncertainty in the Eurozone. However, he adds that the political volatility is likely to strengthen the position of the British economy, but he also admits, "There is no guarantee that everything will go well".

Whether or not the UK leaves the EU remains unclear at this point, but, judging by the reactions of investors in the UK stock market, it is unlikely that this will happen any time soon. In this respect, it seems that the recent events in Germany have been largely ineffectual in weakening the UK economy. On the contrary, Mr Selmayr has gone further to declare that he believes that the current situation in Europe is good for the UK, as the recent European Council has been aimed at boosting confidence and solving a number of problems.

"The reason why this is good for the British economy is because that all the leaders are now talking about putting the Eurozone back together again, which will all contribute to better trade and growth," he said. While this may be the case, the recent scandals may also force the authorities to further tighten monetary policy, but Mr Selmayr says this could help reinvigorate the British exports.

ErisX Launches Physically-Settled Ethereum Futures Contracts

ErisX is developing software to deliver the functionality of Ethereum's ethereal computer. The software, which they call a 'smart contract,' will enable traders and developers to develop and launch an electronic exchange that will trade ether futures contracts.

Ether is the native currency of the ethereal computer. It has been said that ether's potential to create new economic value will cause it to surpass both the USD and the Euro as the world's "new money." Ether can also be traded as a derivative, such as stocks or bonds.

Ether is described as a virtual currency that represents one-eighth of the total value of a currency pair. In other words, ether (ETH) may be exchanged for another currency. As the ether dollar values fluctuate, it becomes more advantageous to sell ether for dollars.

Ether was created in 2020 as a virtual money backed by computer code. It can be used for transactions in peer-to-peer applications. There are millions of ether units being sold each day. It has skyrocketed in value and is even now more popular than gold.

Ether has a future as a currency. That future depends on its use as a medium of exchange. It can serve as a store of value, since its price fluctuates based on the demand and supply of others, as well as the economics of its development.

The ErisX Platform is creating software that allows users to program the way they want the ethereal computer to handle transactions. The platform will allow users to build custom decentralized applications that interact with the ethereal computer. Users can then exchange one type of contract for another using the platform.

Ether can be used as a store of value, since its price fluctuates based on the demand and supply of others, as well as the economics of its development. It can also be used to pay for transactions in peer-to-peer applications. It may be possible for it to surpass USD and the Euro as the world's "new money."

ErisX is building software to deliver the functionality of Ethereum's ethereal computer. The software, which they call a 'smart contract,' will enable traders and developers to develop and launch an electronic exchange that will trade ether futures contracts. Ether can be used as a medium of exchange.

More information on the site FIBO Group

Swap meaning

If you are new to the world of foreign exchange trading and Forex trading, then perhaps you are wondering where do I learn how to find meaning in forex? Well, firstly, I hope that you will understand that I am talking about how to find meaning in forex.

I had not previously considered where to find meaning in forex or how to learn Forex trading. A friend of mine told me that I should get a broker for help. He said that his broker would be able to give me some good advice on how to make money on forex.

Basically he was looking to get me into currency pairs. For example, he was looking for me to get into EUR/USD and I was a bit reluctant. As I looked at it though, I noticed that I am only around here and there. There is no 'real' exchange market in the UK.

In the UK, there is also a completely different FX market to the one that you would find in Europe. The European market is relatively large, but with the size of the markets in Europe, the standard spreads can be quite high. Additionally, the financial markets in Europe generally trade in cash which can also be quite difficult for an average person to understand.

I decided to research about how to find meaning in forex and swap meaning and I was surprised at the number of people that were telling me to get a broker to help me out. They were telling me that I needed to go through a broker to learn about Forex. They were telling me that to find meaning in forex I needed to know all about currency pair investing and that I needed to consult a broker to help me learn about trading.

What a bunch of rubbish! They were just wasting my time. They were not telling me anything that I didn't already know. If you really want to learn about trading, then there is no point going through a broker to find out how to trade because you already know everything there is to know about Forex trading.

I found the truth pretty easy and I really recommend that you keep in mind as well that if you do not tell your broker to stop messing with you, then you have no chance of learning how to trade. It is the same if you do not tell your broker about your fear of losing money when you buy a Forex trade.

Your broker will know everything that you need to know about trading but they can only tell you what you already know. They will not be able to help you learn more about trading unless you tell them that you would like them to help you.

More information on the site FIBO Group

Australian Dollar Faces Key CPI Data, Coronavirus Will Blunt Its Impact

Inflation remains low and the Australian Dollar faces key CPI data, Coronavirus will blunt its impact. This is good news for most investors. But this doesn't mean it's the end of the road for the Australian Dollar.

The weak currency continues to persist as the dollar remains strong despite the strength of the US economy.

People remain cash strapped because of the exchange rate differential. However, as strong dollar rises, so does the Australian Dollar.

The weakness in the dollar is explained by a combination of weak industrial production, weaker mining output and strength in the US economy. This is an environment which makes investing in a good bet and the Australian Dollar has been relatively stable. More economic indicators point to stronger growth and a stable currency.

The index of essential commodities, which includes food, energy and other goods, in key inflation data points to low inflation. The price of oil, the country's major export commodity, has been steady, which may ease some concerns over weakening commodity prices. The continued low rate of interest on housing loans points to stable investor sentiments, especially as the value of the currency is boosted by low levels of interest rates.

Even the Australian government is showing its cautious side, with a softening of its hard line on currency movements in response to the strong dollar. However, the government is keeping a close watch on political developments in China's monetary policy. This reflects the thinking of the Australian government, which sees a low rate of interest as a temporary factor which can be unwound soon.

Nevertheless, the Australian dollar continues to be weak. This is a result of a combination of a weak exchange rate, a strong dollar and other factors. Coronavirus and Coronaviruses weaken the impact of any strong index numbers and boost the strength of the Aussie Dollar.

The index of essential commodities in key inflation data points to a relatively benign environment for the economy. Oil prices are expected to remain at low levels in future. This makes investing in agricultural, mining and manufacturing commodities more profitable.

Strong dollar is a factor that strengthens the resilience of the Australian dollar. In addition, weaker commodity prices are also hurting Australian farmers. Meanwhile, the weakness in the dollar is helping Australian manufacturers to offset their increased costs in raw materials.

However, Coronavirus will continue to weigh on the Aussie Dollar. The RBA will be looking to channel more funds into the economy through monetary policy, rather than stimulus measures. At this stage, however, the effects of the next Australian tax announcement will further weaken the currency.

The effect of Coronavirus on the currency is not much. A low index of essential commodities, low, natural resources prices and a weak currency all support the Aussie. This has been the case throughout this volatile period.

But with Coronavirus, it's the opposite. The commodity price index is strong and the dollar is weaker. The main beneficiaries are the retailers and exporters of materials.

The main reason for this is the recent announcement by the RBA, which is likely to hike the official cash rate later this month. While this may cause a tiny decrease in the Sydney dollar, the effect is offset by Coronavirus, and this weakens the Australian Dollar.

Crude Oil Prices Rise on Hopes US to Emerge From Covid Lockdowns

Crude Oil Prices rise on hopes of US to emerge from nearly two months of prolonged closure, November is historically a leading month for the global market. This is because December is also considered to be a strong month for buyers of crude oil and gasoline.

The rise in oil prices this year is due to the increasing demand to meet with the rising demand by domestic producers and exporters. Imports from other countries are balanced by exports.

There is an estimated modest increase in both imports and exports in December because of the end of US government shutdown. Imports from the United States will have to deal with various problems such as fuel shortages at all US domestic ports.

The international oil companies are already restricting their refining capacity due to the lack of supplies coming in from overseas importers and exporters. Reduced domestic crude oil stocks are likely to lead to continued price increases until exports get back to normal levels in late December.

It is expected that oil prices will continue to rise until early January due to concerns over the economic situation in Europe and Asia. The weaker European economies will most likely experience significant growth in fuel consumption in the coming months. Therefore, traders could expect an increase in US crude oil prices in the next couple of months as European importers and exporters try to balance their budgets to make up for the reductions in fuel prices.

It is obvious that the increasing demand for crude oil and gasoline is being influenced by the Chinese government's commitment to be the world's top consumer of energy. China's future energy supplies will be directly affected by the efforts of China to reduce its own dependence on imported crude oil and gasoline.

The demand for these commodities has also been stimulated by China's role as the leading economy of the Asian continent. With regard to China's approach to economic development, it is obvious that they will aim to make the most of its oil reserves and oil transportation resources to produce more electricity and to provide industrial goods to the rest of the world. Because of this, the Chinese government has recently approved a more aggressive program for the exploration of oil and gas resources in China's coastal areas.

Despite predictions of a rise in oil prices in the near future, some analysts have predicted that crude oil prices will stay stable throughout 2020 and that it will increase only by the end of the year. Many traders are expecting a price rise because of the long term trend of increasing demand. In the upcoming months, we are likely to see volatility in the markets due to different global events.

Some traders are predicting that the number of oil producing countries will increase until the end of 2020 and that domestic production will come down due to insufficient supply. On the other hand, if these predictions are met, the amount of crude oil produced by the United States will decline.

The problem with crude oil prices is that they cannot be predicted precisely. What is predictable is the large demand for gasoline and petroleum products around the world, but supply and demand are two very different concepts.

Developing countries' increasing dependence on crude oil for domestic supplies may decrease demand for gasoline in Europe and Asian countries. This is because the developed countries will take up less of the worldwide demand for petroleum products.

Crude oil prices rise on hopes of US to emerge from near two months of closure, November is historically a leading month for the global market. This is because December is also considered to be a strong month for buyers of crude oil and gasoline.

Canadian Dollar Price Outlook: USD/CAD Pop to 1.40 Test

The Canadian Dollar Price Outlook: Loonie Drop USD/CAD Pop to 1.40 Test is a fact! After the stunning run of the Canadian Dollar, it's time to face reality.

The USD/CAD Rallies Again!

Since I began writing this series back in January, the Dollar has lost more than half of its value! In a flash, the USD/CAD Rallies Again!

If you're unfamiliar with the currency, you are definitely in for a treat. Currency is a measure of the value of one country's currency against another. Think of it as a rough index for the strength of the exchange rate between two nations.

Consider the Canadian Dollar, a very strong currency. It's trading extremely low against most other major currencies. For example, in the past month, the Canadian Dollar dropped by less than 3% against the Euro and lost just under 15% against the US Dollar. As such, if you were to buy one Canadian Dollar, you'd be sitting on one-fifth of a US Dollar.

Even though the Canadian Dollar has performed so well, the Yen, or the Japanese Yen, still remains a strong currency. Its weakness against the Dollar was due to political unrest. If you were to put your Canadian Dollar in a Japanese Yen account, you would be sitting on nearly four US Dollars!

So let's look at where gold prices have been in relation to gold prices during the recent run-up. Remember when the gold prices were soaring? This is where the Canadian Dollar Value Outlook: Loonie Drop USD/CAD Pop to 1.40 Test comes into play. Now, for the first time since 1998, the US Dollar continues to have higher prices against gold than the Euro.

In fact, gold prices are now higher than ever before in history. And this is just the beginning!

The term 'currency trading strategies' can often sound overly complicated, so many traders are left wondering what a Forex Strategy is. I suggest that currency trading strategies doesn't mean the same thing as an individual Forex trader strategy. An individual Forex trader strategy is an effort to identify the price to trade for.

Individual Forex strategies should be relatively simple and easy to find. If the currency prices continue to climb, and then continue to decline, it's very likely that the individual Forex trader will experience a huge loss.

Even so, there are some strategies that would allow investors to buy up the currency from a dip, then ride the currency and prevent large losses. A good way to do this is to hold a long position in the currency (a "longon" position) and then sell to sell the currency back down to the short position once the currencies break above the target level (a "shorton" position).

Currency trading strategies are ideal for potential clients who have little knowledge of currency trading. If you know the basics of price discovery and currency trading, and you're willing to do the work, then you'll have more success.

We have a bunch of different forex strategies designed to help you learn currency trading in the fast paced and ever changing world of currency trading. So get started right away, just take the first step and you can see why we are the number one Forex newsletter selling service!

Gold Prices Edge Lower But Coronavirus Fears Underpin Haven Bids

Gold prices are edging lower, but the buzz around the medical world is that another potential virus is at work. Coronavirus is a coronavirus that can be identified by its unusual genetic structure and clinical symptoms. Coronavirus is similar to chicken pox, but in some people, it is less serious than chicken pox.

Coronavirus causes chicken pox in people who have weak immune systems, which could cause illness with an asymptomatic person. The same thing can happen with Coronavirus. This has been widely reported in the news, but some folks may still be making a living from the virus without realizing they do.

The medical community is discussing whether there may be a connection between the two viruses. The governments of both Canada and the United States have declared Coronavirus a "serious" public health threat and have high level meetings scheduled in Washington DC this week.

According to the National Institutes of Health, doctors have studied the Coronavirus virus, but it's not clear if it causes any problems. So far, there are no studies that connect Coronavirus with any long term illnesses or death. Experts believe that there is little risk associated with infection, but those who contract the virus may feel ill for months or years.

Some in the medical world think that the virus is taking the US gold market down. They think that the virus has spread in China and other Asian countries, as well as the US. China is currently preparing for a big trade show in Shanghai, and medical companies want to take advantage of the Chinese growth in this market. If Chinese products are recalled from the US because of a possible outbreak, the trade show may be affected.

It is common for the government reaction to first be about the virus and then to be about the virus itself. They will state that the government has taken the situation very seriously and the public should know that you should stay away from infected goods. Then they will say there is no known threat associated with Coronavirus and so the public should remain calm.

However, the public didn't know about the apparent coronavirus outbreak until the US and Canadian governments said so. There are currently reports about 5 deaths caused by Coronavirus in the US, Canada, and elsewhere. Some people are saying that the coronavirus outbreak is similar to the measles outbreak a few years ago, but the news media reports aren't matching up.

According to some reports, the government issued an official statement on Friday, February 14th. It stated that all Canadian importation of poultry from Asia has been halted. However, the government did not specify what specific products were affected, only that it was shutting down poultry imports from Asia.

When Canada and the US do not come up with a decision about stopping imports of imported goods, they will have to decide whether to close their borders or simply let the imports continue. Currently, Canada has many commercial importers that import Chinese goods to fill orders. Therefore, closing the border may mean the end of Canadian imports of goods from Asia.

It's time to start planning on trading gold in a bullion market. And it's time to start preparing for the possible effect of this news.

The best thing to do is to buy gold stocks that are controlled by known and not so known parties. These stocks should move in a direct correlation to the news about Coronavirus. Since the virus is out there, you can start to see how the market reacts.

Gold and silver prices were on a very steady track up until February 10th, when the news broke. Since then, the gold price has edged lower and silver price has edged higher.

British Pound (GBP) Latest: GBP/USD Stabilizes, Outlook Improves

Following the recent news of a slight increase in the current account deficit, the British Pound (GBP) is currently trading against a strengthened US Dollar (USD). This has led to speculations that the GBP might depreciate as it may not be able to maintain its previous valuation if the US Dollar continues to strengthen.

Of course this is not a particular perspective which we can gain for you but it can be compared with the forecast of the economic impact and how the recent global financial crisis will impact upon the economic growth and development. All major currencies are linked and they are affected by each other. If for example the UK were to experience an increase in trade with China, the economy would grow but so would the price level.

There are several economic indicators to check on and most of them are pointing towards better growth. We can look at the output figures, we can look at consumer confidence, we can look at employment figures and many more. The strength of the global economy is even being backed up by the International Monetary Fund (IMF) who have been stating that the economic outlook is looking very bright.

In addition to this, the strong demand and supply balance of the international market mean that there is an increasing opportunity for businesses and investors to take advantage of the low-interest rates and liquidity conditions which exist. Some countries have done very well through this crisis and some have fared poorly and some countries which suffered the most have recovered very quickly and had massive growth in their export markets.

Amongst the major countries that have seen a boost in growth are the United States, United Kingdom, Japan, Italy, Germany and Ireland. However, even among these countries, many are still trying to find the optimum form of stimulus. Given the current situation, it seems unlikely that any additional stimulus from the major central banks will be forthcoming anytime soon.

The British Pound (GBP) has been one of the best performing major currencies against the USD (as shown in the previous graph). The rise in the demand for Sterling has also been matched by the strengthening USD.

One of the reasons why the British Pound (GBP) has performed well against the USD is the strong performance of the Euro. For example, during the Global Financial Crisis, the Euro appreciated against the USD whereas the British Pound suffered steep falls. But even after all this depreciation, the GBP continued to recover and is now up over 2% since the onset of the financial crisis.

Another benefit of trading the British Pound (GBP) against the USD is that the currency has strong support from the European Central Bank (ECB). There are a number of reasons why the ECB decided to support the GBP. First of all, it has been seen that an appreciation of the GBP may have implications for their own exports and therefore if their exports are depreciated, it may have a negative impact on their balance of payments.

Another reason why the ECB is supporting the Euro is that it has seen that countries which have entered into fiscal austerity programmes may not have the capacity to do so in the future. This has prompted the ECB to protect the value of the Euro by allowing for a rise in the UK Pound's value. In order words, the Euro and the British Pound are both up.

Finally, as discussed above, the global economic crisis has increased consumer confidence around the world. Therefore, the global demand for goods, commodities and services is on the rise.

The British Pound (GBP) is on a strong upward trend and as a result, we can expect to see a further upward move on a monthly basis. It is possible that a new high may be achieved and this is very much dependent on the economic scenario in each country.

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