Over the weekend the G20 met to discuss the global economic downturn with a follow up meeting scheduled for this Friday in Washington DC. The first move by an attendee is from the Chinese who have told the market of a planned £373bn stimulus package. Given China’s demand for expansion we foresee this will have a positive effect on commodity currencies and equities in the short term as risk aversion slips. In early trade AUD, NZD and ZAR are all stronger against sterling where as the dollar is slightly weaker.

Today is a fairly quiet data day with only UK producer prices of note; they are of course expected to fall.

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.

To view any past or present currency blogs please click on the following link www.worldfirst.com/blog

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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