Briefly About Currencies

Major currencies during the week just ended, they went out for a gain of refuge currency status by the British pound. With the economic situation in the U.S. and Europe is in crisis, the British currency is considered the safest among the other two, although to be fair it must be said that the economic situation in the United Kingdom is not of the most peaceful.

Regarding the exchange rate EUR USD, we have seen high volatility, which has pulled this currency peaks and lows of 1.4420 1.4120, 300 pips difference well. During the next week we expect a more volatile performance, since markets have not yet made a precise definition. For those who want to invest money in this exchange ratio, you must wait before confirmation.

The British pound has lost significantly against the U.S. dollar, breaking even decreasing the proportion of 1.6100. For the next week our graphs tell us that this exchange ratio may continue in this direction, even if at the end of the week we saw a partial recovery of the British currency. In any case wait for confirmation before acting.

Instead the dollar has lost ground against the Japanese yen, reaching an altitude of below 76.00, a clear sign that the Japanese government's intervention in an attempt to lose its strength to its currency has not yielded the desired results. For the next week we could see, however, a slight recovery of the U.S. dollar.

The exchange rate between the euro and British pound has seen our share of currency touched 0.8870, before falling again. Next week we might even see a trend in favor of the British pound, but before opening of the new positions are waiting for confirmation. But the fact that the situation in the euro zone's scary to investors could favor the exchange ratio to a decline.

Posted in: Economy