Good morning and welcome to today\u2019s foreign exchange market commentary on Friday the 09th December.<\/p>\n
As the Eurozone thriller drags on endlessly, plots change faster than Hitchcock\u2019s blockbusters. New heroes emerge, only to turn into villains overnight. That Prime Minister David Cameron doesn\u2019t look eye-to-eye with President Nicholas Sarkozy is a well known fact. Sparks have flown whenever the two have met in the past couple of months. It was no surprise that the two crossed swords again when they two came face-to-face yesterday. <\/p>\n
Unfortunately David Cameron had to take the blames this time for failing to agree to a new treaty to solve eurozone\u2019s woes. President Sarkozy termed his demand for concessions to protect London\u2019s financial dominance \u2018unacceptable.\u2019 Though the Tories complemented Cameron for protecting London\u2019s financial interests, critics have quickly pointed out that Britain\u2019s isolation within would ensure its status relegated to that of a Malta or Latvia.<\/p>\n
Excepting the UK and Hungary, 23 of the 27 EU member nations are pushing ahead with tougher economic and fiscal sanctions to restore the region\u2019s credibility. Czech Republic and Sweden will consult their parliaments before joining the party.<\/p>\n
The PM had insisted that any new treaty involving all the 27 nations would guarantee that British voice would be heard on crucial policy issues and will not undermine the financial services sector \u2013 crucial for UK\u2019s economy. However, Germany and France decided to move ahead to set up a separate treaty to achieve their ends. However, the problem with the core 17 countries is that the approval of EU institutions, specifically the European Commission, to implement future treaty changes would require the backing of all 27 members. That leaves Cameron with some more bargaining space. <\/p>\n
GBP\/EURO \u2013 1.1730
\nGBP\/US$ \u2013 1.5636
\nGBP\/CHF \u2013 1.4489
\nGBP\/CAN$ – 1.6009
\nGBP\/AUS$ \u2013 1.5502
\nGBP\/ZAR \u2013 12.9288
\nGBP\/JPY \u2013 121.46
\nGBP\/HKD \u2013 12.1724
\nGBP\/NZD \u2013 2.0384
\nGBP\/SEK \u2013 10.6314<\/p>\n