Euro Pound Exchange Rate Report – 25th October 2010
October 26, 2010 Leave a comment
In a week which saw Wayne Rooney take most of the headlines it was almost forgotten that Chancellor of the Exchequer George Osborne had stepped up and spoken about the radical changes he was going to implement to government spending.
Fiscal deficit in the UK is up at a whopping £178 Billion and while cuts are absolutely essential it is going to hit the spine of Britain a lot harder than first thought. The coalition Government has to be very careful that they don’t drive the British economy into another deeper and darker recession.
While Osborne was speaking we saw little movement on the currency front with Sterling moving just 30 pips either side of 1.1342 for the duration of his speech.
The Pound simply did not budge and despite the hype which led up to the spending cuts more was made in what the BOE had to say when the MPC released its October minutes. The report contained few surprises it just looks like more QE (Quantitative easing) on the way. Adam Posen decided he wanted rates to remain the same but hike up the QE programme from £200 Billion (just to be different), and for a change Andrew Sentence wanted base rates up to 0.75% and with QE to be maintained at £200 Billion.
It is surprising that the Greek debt crisis which created huge strains on the main powers of Europe has still not deterred Foreign Investment from the Euro Zone. Is this because investors see Britain as a risky investment prospect, trying to stay afloat but struggling? These bold measures taken by our new government may kick start the pounds revolution against the Euro.
Those intending to buy Euros in the future may want to look at taking advantage sooner rather than later.
If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today.