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Hope you all had a great week.
The GBP rose for a third week against the Euro as the Bank of England pauses its "assets-purchase program", making the UK a haven for investment amidst the Euro crisis (Jenkins, 2012).
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| UK Pound Symbol Photos. |
According to Ian Stannard, head of European currency strategy at Morgan Stanley, London, he says that the pound may advance to 78 pence versus the euro by year- end (Jenkins, 2012).
The Euro declined to $1.2955, the weakest since Jan. 25, before trading at $1.2980 as of 10:21 a.m. in Tokyo, 0.8 percent below last week’s close in New York. It dropped 0.9 percent to 103.60 yen. The dollar was little changed at 79.81 yen (Aquino, 2012).
All this was was happened after Socialist Francois Hollande was elected president of France and as Greek voters flocked to anti-bailout parties, stoking concern austerity efforts in Europe may be derailed (Kondo & Charlton, 2012). This same action saw the Aussie and Kiwi declined 0.6% to $1.0121 as of 10:20 a.m. in Sydney, and touched $1.0110, the lowest since Dec. 29, and the Kiwi at 79.10 U.S. cents, the least since Jan. 13, before trading at 79.23 cents, 0.4 percent lower than the close on May 4 (Aquino, 2012).
Canada’s currency weakened 1.6% this week to 99.61 cents per USD, the biggest drop since Dec. 16. It touched 98 cents on April 27, the strongest since September. One Canadian dollar buys $1.0039 (Gutscher, 2012). All this happened after the US economy trailed forecasts despite a speech by the Bank of Canada Governor's speech to increase interest rates to contain inflation and an increase in unemployment (Gutscher, 2012).
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