June, 2011
Foreign Exchange - UK Daily Update - Thursday, June 30, 2011 7:36 - 0 Comments
World First Morning Update 30th June 2011: All These Things Shall Come To Pass
httpvh://www.youtube.com/watch?v=K2Ha7b79IzY
So the result was never in doubt really and the Greek ruling party managed to secure enough votes to pass the austerity measures vote. Outside the situation was not so easy as riot police and protestors met head to head in Syntagma Square. Most Greeks questioned after the announcement that the vote had passed were laissez faire in their assessment arguing that the government would have significant difficulty in implementing such measures.
There is one more hurdle left to clear and that is a vote on the how much comes from each cut. We expect this come through at around 1pm and there could be support for the opposition on the smaller items but in the grand scheme of things we expect this vote to pass as well.
So where does this all leave Greece? Still deep in the woods unfortunately however they will have bought a little bit of time with these votes and they will be enough for the IMF/EU to disburse the next round of bailout payments.
We expect the focus will now switch to the rest of the Eurozone with similar problems likely seen in the rest of the periphery and voter dismay in the core such as Germany. Indeed there was a report yesterday that Germany had begun to print the D-Mark again in order to get ready for an exit of the single currency. Now these rumours normally start flying around at times of crisis and i would not pay too much attention to them. This comes a couple of days before German banks are exp0ected to follow their Spanish and French counterparts in a agreeing a rollover of the Greek debt they hold.
With hurdles cleared and banks doing what is expected of them it is little wonder that the euro is stronger despite the Greek can being kicked down the road so hard that it no longer really resembles a can. EURUSD is nudging the 1.45 level whilst GBPEUR has broken below 1.11.
Sterling is once again weak this morning after a poor consumer confidence figure. This was not a surprise a point Joe highlighted in his weekly Sterling Update this Monday. The official blurb that came with the release was that a fall-off was expected after the bubble caused by the Royal Wedding and the slew of bank holidays we had in April considering the large headwinds the average British consumer will face through the summer months.
There are signs that not all is well in the core of the Eurozone too after German retail sales in May fell by 2.8% vs. an expected rise of 0.5%. We expect this to be as a result of oil based inflation pressures.
Latest exchange rates at time of writing
| Indicative Rates | Sell | Buy |
| GBPEUR | 1.1082 | 1.1109 |
| GBPUSD | 1.6089 | 1.6113 |
| EURUSD | 1.4501 | 1.4525 |
| GBPJPY | 129.24 | 129.54 |
| GBPAUD | 1.4975 | 1.5001 |
| GBPNZD | 1.9391 | 1.9421 |
| GBPCAD | 1.5557 | 1.5586 |
| NZDUSD | 0.8287 | 0.8306 |
| GBPZAR | 10.86 | 10.91 |
| USDZAR | 6.7466 | 6.7763 |
| GBPPLN | 4.4073 | 4.4335 |
| EURJPY | 116.44 | 116.69 |
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Rates are dependent on amount transacted. Please call 020 7801 9080 for a live rate quote |
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- World First Morning Update 29th June 2011: Greek Day of Reckoning
- World First Morning Update 28th June 2011: French Agree to Roll Bonds
- World First in press: The Sunday Times 26 June 2011
- World First Morning Update 27th June 2011:Greece Moves Closer to Austerity Vote
- World First Morning Update 24th June 2011: EU-Greece Deal Supports Risk
- World First Morning Update 23rd June 2011: Central Bank’s Show Fears Over Growth Prospects
- World First in the press: The Telegraph 22 June 2011
- World First on the news: BBC TV 21 June 2011
- World First Morning Update 22nd June 2011: G-Pap Wins Confidence Vote
- World First Morning Update 21st June 2011: Confidence Vote Looms Over Greece.
- World First Sterling Update 20th June 2011: Unemployment doesn’t do the Job
- World First Morning Update 20th June 2011: EU Finance Ministers Refuse To Reach Consensus
- World First Morning Update 17th June 2011: Prospects For Greece Not Lightening
- World First Morning Update 16th June 2011: Greece Close To Falling Apart
- World First Morning Update 14th June 2011: UK Inflation Remains at 2½ Year High
- World First Morning Update 14th June 2011: S&P Downgrade Greece to Lowest Credit Rating In The World
- World First Sterling Update 14th June 2011: Osborne takes the (AAA) Credit
- World First Morning Update 13th June 2011: Euro Periphery Once Again The Focus
- World First Morning Update 10th June 2011: Euro Slips Despite Trichet’s Hint At Rate Rises
- World First Morning Update 9th June 2011: Holds Anticipated for BOE and ECB
- World First Morning Update 8th June 2011: Bernanke Talks Down QE3
- World First Morning Update 7th June 2011: IMF Endorse Osborne’s Plans
- World First Morning Update 6th June 2011: US Double Dip Concerns As Job Growth Remains Weak
- World First in the press: The Telegraph 3 June 2011
- World First Morning Update 3rd June 2011: US ‘AAA’ Rating In Danger As Non-Farms Loom
- World First Morning Update 2nd June 2011: Global Manufacturing Slows
- World First in the press: The Guardian 1 Jun 2011
- World First in the press: The Telegraph 6 June 2011
- World First Morning Update 1st June 2011: Take 2 For Greece?
