All this and more is available on our video blog at http://uk.youtube.com/user/WorldFirstJC

The Dollar capped off a terrible week by weakening once again against GBP and EUR on Friday as the market continued to express its annoyance at the Fed’s QE plans. The plan was simply more aggressive than most commentators expected and alongside the wrangling over the notorious AIG has had politicians, talking heads and chat-show hosts seething across the pond.

Weekend press sees that the only major economy to not engage in a fiscally expansionist policy, the EU, will have to by summer and therefore the short term gains that the single currency has made against the dollar and pound could be reversed suddenly. The speed of that volte face would make most currencies’ heads spin.

The risk averse/appetite market pull is a mess at the moment: typically we have seen USD strengthen against asset classes when the proverbial hits the fan however that correlation is becoming increasingly loose. This week could see a US banking bailout plan which, if not well received, alongside the ire previous measures have received could spell a painful time.

Data today is fairly light with only US Existing Home Sales and the Hungarian interest rate decision of note.

All this and more is available on our video blog at http://uk.youtube.com/user/WorldFirstJC

Please feel free to contact me (jeremy.cook@worldfirst.com) if you have any questions or thoughts regarding these updates or if you are interested in a particular event in the calendar. If you would like to discuss your foreign exchange requirements, please contact our: Corporate Foreign Exchange Team on 020 7801 9050 or our Private Client Currency Exchange Team on 020 7801 9080. Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms.

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