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£/€
Range of the week: 1.2020 – 1.1856 (testing the lower side this morning)
Variance of the week on £10k=€164


All eyes at the start of the week had been on the on-going bailout package to be agreed for Greece. The view of many was that the Greeks had to accept the terms placed by the IMF and ECB if it wanted to avoid default and a complete meltdown in their economy, therefore risking further contagion throughout the Euro-Zone. Speculation that an agreement had been reached sent the Euro up against both the pound and US Dollar on Monday afternoon.

The official announcement was made in the early hours of Tuesday morning. They had agreed a €130bn 2nd bailout, and under the terms of the deal agreed to reduce down its Debt to GDP ratio to 120.5% by 2020. It was however met with a fairly muted response by the markets. With some analysts anticipating they would need another €50bn within 2 years. It has however, bought the Greeks and the Euro-Zone some much needed time and breathing space.

Major economic data this week comes from the minutes from the Bank of England’s February meeting. Released this morning they showed that all members voted for further QE but that two wanted as much as £75bn to offset the risk that activity in the economy proves weaker than expected. All members voted to keep rates on hold, as expected.


£/$
Range of the week:1.5880 – 1.5695
Variance of the week on £10k= $185


A quiet week so far from the other side of the pond. Monday was a US Federal holiday so no economic news.

The main focus at the moment seems to be on the ongoing elections later this year. Any movement we are seeing against the dollar is a continuation of the risk on-risk off situation with investors buying the greenback as a traditional safe haven.


£/AUS
Range of the week: 1.4856 – 1.4742
Variance of the week on £10k= AU$114


The RBA released their minutes from Februarys meeting. It showed they felt that “While the financial situation in Europe remained fragile, the likelihood of an extremely bad outcome seemed to have diminished somewhat,”

The AUD is continuing to show strength against the pound and there is no sign of that changing anytime time soon with the economy continuing to progress much faster than any of its Western equivalents.


£/NZD
Range of the week:1.8978 – 1.8852
Variance of the week: on £10k=NZ$126


No major news or data for the week so far


£/ZAR
Range of the week: 12.423 – 12.1071
Variance of the week: on £10k=ZAR3159


No major news or data for the week so far


£/CAD
Range of the week: 1.5772 – 1.5655
Variance of the week: on £10k=CA$117


No major news or data for the week so far
 
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