Monday 15 March 2010
Big move down for the Pound in the Foreign Exchange markets today
I was a moment ago just doing a regular check-in to see what is going on in the boring world of Foreign Exchange rates (which I find is quickest and easiest at the www.kitco.com website since I am often there looking for news and articles on this sector anyway, but you can get it anywhere you like it's all the same of course). It is boring, but its useful to keep half an eye on I find.
Anyway, to cut a long story short: the Pound just this morning made the kind of move normally associated with the volatile currencies of banana republic nations -- it is down 1% so far today, and as you can see from the time of this blog entry it's only lunchtime. New York hasn't even logged on yet.
Compare that move in the list above to that for, say, Brazilian Real, Russian Ruble, or South African Rand. One percent doesn't sound like much, but in the world of Forex, especially for one of the major currencies like the Pound, that is a serious move in such a short window of time. If that happened every day you would sure feel it at the shops and the petrol station!
Hopefully, this is just a one-morning-aberration -- it's certainly not unheard of by any means. However, I am currently on a nervous look-out for a serious decline in the Pound any time now, so for me this bears noting today.