Euro has weakened considerably over the weekend, slipping below the key psychological 1.50 barrier and pushing above  1.28 against GBP, a level not seen since the 2nd of May.

Tensions in Georgia increased over the weekend with various reports of ceasefires, incursions and bombing raids floating through. Normally in times of conflict we would expect oil to rise, as well as gold and the US dollar in a flight to safety/reliability. The moves have not been volatile yet but should news of potential US intervention prove out to be true further whipsaw could be seen.

The data calendar for this week is fairly packed and volatility is all but assured. Should you wish to speak to anyone in regard to hedging please call your dealer, the corporate team on 0207 801 9050 or the private team on 0207 801 9080.

———————-

 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.