Good morning and welcome to today\u2019s foreign exchange market commentary on Tuesday the 15th of November.<\/p>\n
The developments in Europe remain a serious cause for concern. Despite former European Commissioner Mario Monti taking over the reigns of Italy, markets remain far from convinced about the nation\u2019s repayment capacity. Yield on five-year bonds zoomed to 6.29 per cent at yesterday\u2019s auction in Rome, a Eurozone record. Italy, which managed to raise \u20ac3 billion yesterday, would require another \u20ac46 billion in debt before the end of 2011. <\/p>\n
More bad news is expected as Spain is looking vulnerable with traders betting it will join Italy soon in bailout territory. Bond yields breached the 6 per cent barrier for the first time in three months. The country will auction 10-year bonds worth \u20ac4 billion on Thursday.<\/p>\n
Meanwhile Angela Markel refused to back \u2018eurobonds\u2019 to solve the ongoing crisis and said she would rather opt for amendments of European treaties that imposes sanctions on financially lax countries. She backed the early adoption of a financial transaction tax, with or without Britain\u2019s support.<\/p>\n
GBP\/EURO \u2013 1.1701
\nGBP\/US$ \u2013 1.5906
\nGBP\/CHF \u2013 1.4539
\nGBP\/CAN$ – 1.6221
\nGBP\/AUS$ \u2013 1.5661
\nGBP\/ZAR \u2013 12.7918
\nGBP\/JPY \u2013 122.49
\nGBP\/HKD \u2013 12.3798
\nGBP\/NZD \u2013 2.0521
\nGBP\/SEK \u2013 10.6811<\/p>\n