Good morning and welcome to today\u2019s foreign exchange market commentary on Monday the 14th of November. <\/p>\n
The global financial markets are looking a little uncertain with the new (and convincing) leadership in place in Italy and Greece. However, optimism remains due to fresh leadership. Both Papandreou and Berlusconi are gone, for good hopefully. Italy\u2019s new interim Prime Minister Mario Monti \u2013 the former European Commissioner, has an unenviable task at hand. He would have to make the difficult decisions of budget cuts, bridge the gap of revenue and expenses by lowering the latter. Something the smart Berlusconi dithered over a long time since it was expected to be a highly unpopular decision. Don\u2019t be surprised if Greek type riots break out in Italy over the next few months. Fortunately Berlusconi\u2019s conservative party has extended its support to the respected economist Monti over forming the new government after President Giorgio Napolitano invited him to take over the country\u2019s reign. Hopefully that will bring some stability to the newly formed government.<\/p>\n
Italy\u2019s total debt stands at \u20ac1.9 trillion or 120% of its GDP. The country needs to roll-over a little over \u20ac300 billion of its debts in 2012 alone and the new economist PM is acutely aware of the challenges ahead. <\/p>\n
\u201cIn a moment of particular difficulty, Italy must win the challenge to bounce back, we must be an element of strength and not weakness in the European Union, of which we are founders,\u201d Mr. Monti said soon after taking over.<\/p>\n
Outgoing Prime Minister Berlusconi \u2013 infamous for numerous sex scandals, provided some comic relief when he said he was \u2018sad\u2019 his \u2018generous gesture\u2019 to step down was greeted with \u2018hoots and insults\u2019 from crowds outside the parliament.<\/p>\n
He shared pearls of wisdom though, and said the European Central Bank should become the banker of the last resort and guarantor of the currency \u2013 currently illegal under EU laws, if the common currency and Europe were to be saved. Thank you very much Berlo! That was too little too late. It\u2019s hoped that you were not merely reading out the speech written by some economist!.<\/p>\n
GBP\/EURO \u2013 1.1642
GBP\/US$ \u2013 1.6008
GBP\/CAN$ \u2013 1.6256
GBP\/AUS$ \u2013 1.5569
GBP\/ZAR \u2013 12.63
GBP\/JPY \u2013 123.22
GBP\/NZD \u2013 2.0388<\/p>\n