|DATE||BIDDING RATE||ASKING RATE|
This table shows which way the base currency moved in the last update (movement in pips*).
|CURRENCY PAIR||BIDDING RATE|
|GBP/JPY - Japanese Yen||151.3677 278|
|GBP/DKK - Danish Kroner||8.7237 6|
|GBP/SGD - Singapore Dollars||1.9684 3|
|GBP/CAD - Canadian Dollars||1.5984 2|
|CURRENCY PAIR||BIDDING RATE|
|GBP/SEK - Swedish Kronor||10.1219 16|
|GBP/RUB - Russian Ruble||50.4659 8|
|GBP/NOK - Norwegian Krone||9.1746 2|
* Pips: The smallest price increment in a currency cross price. Sometimes referred to as a "tic". For example, in GBP/USD, a move in the bid price from 1.8561 to 1.8560 is one pip.
This morning there has been a sharp fall in equity prices with the FTSE 100 falling below 6200 at the time of writing. The sell-off has been brutal and the market reaction to Bernanke’s comments last night with regards to the end of tapering sending shudders through the markets. The reaction seems overdone as what he said was as expected but the markets always over-shoot.
With Indian growth slowing, the currency has been hit hard. But while this benefits some parts of the economy, the impact of the US Fed decisions and upcoming Indian elections means there could be lots more different pressures on the rupee in the medium-term future.
The weakness in the rupee in 2013 has been astounding. The severity of the fall in the last few weeks has caught many by surprise with the rupee falling from the low 80s against sterling (INR/GBP) to the current level of 91.70 (on 18 June 2013), and the low 50s against the US dollar (INR/USD) to 58.60 at the time I write this.
Falkland Islands Holdings (FKL) provides investors with a lower risk exposure to the potential development of oil and gas prospects in the Falkland Islands. However, the return on the investment is unlikely to be seen until 2015 at the earliest.
Last year, FTSE 250 company Premier Oil acquired a 60% stake in the Sea Lion prospect discovered by Rockhopper.
From a purchasing power point of view, sterling above 1.50 USD seems difficult to justify and with Mark Carney taking the reins at the Bank of England from July we may already have seen sterling's 2013 year high. Carney has been a strong advocate of more quantitative easing (QE) in the UK, which would drive sterling sharply lower.
Sterling’s sharp rise against the US dollar has caught many by surprise, the currency has recovered from 1.51 USD in May to the current 1.57 USD level. However, the 1.57 level is proving difficult to cross and we won’t be surprised if the USD now begins to regain some ground and take the GBP back to below 1.55 USD over the next couple of weeks.
Fears over a reduction in global liquidity as central banks scale back easing measures sends emerging markets in a rout with slowing global growth adding to the malaise.
EM’s have been the biggest beneficiaries of loose global central bank money over the years; central banks around the world have pumped in $12trillion of extra liquidity since the financial crisis of 2008, preventing a systemic risk in the market.
Daily global markets overview with the overnight activity and what can be expected in the markets today. Information straight from the traders’ desks. Insights on commodities, equities, stocks and forex currencies.