Good morning and welcome to today\u2019s foreign exchange market commentary on Monday, the 14th of May.<\/p>\n
The new French President Francois Hollande has promised change to his countrymen, especially the younger generation who are yet to find jobs. The sad truth is Hollande\u2019s promises regressive that vows to take the country in the opposite direction. His refusal to reign in the country\u2019s enormously expensive welfare state sends the wrong signal to his countryman, that nothing can stop the French juggernaut carrying on as before.<\/p>\n
The new socialist president has promised a balanced budget by 2017, but with a raft of spending promises that seems like a distant dream. It\u2019s important to note that the country didn\u2019t have had a balanced budget in the last 40 years. France already is one of the highly taxed countrirs and it\u2019s unlikely that the cost of the public sector would be entirely borne by today\u2019s tax payers. Taxing the super-rich at 75 percent will raise very little revenue for Paris, but may give an unexpected boost to George Osborne in London as the rich moves out. Left with the Hobson\u2019s choice, Hollande will borrow heavily so that the debt is pushed back to the next generation or two, only to be repaid by the same youngsters who are celebrating his victory today. The dewy-eyed teenagers who cheered for Hollande proves that there are still places on earth where turkey\u2019s welcome Christmas.<\/p>\n
CURRENCY RATES OVERVIEW<\/strong><\/p>\n GBP\/EURO<\/strong> \u2013\u00a01.2465 EUR: The euro continued to suffer on Friday as Greece prepares for another round of voting that probably will give the leftists a thumping majority. Sterling eased a little against the single currency on Friday as investors booked profits hoping a solution on the Greek deadlock by Monday, when the Greek President reconvenes a meeting of the political parties. France, Spain and Italy\u00a0 \u00a0are due to auction bonds today and if yields surge, the single currency may witness further downside. The GBP\/EUR pair opens at 1.2485 this morning.<\/p>\n USD: A number of factors including weak Chinese economic data, the political circus in Greece and banking giant JP Morgan Chase\u2019s shock loss of $2 billion drove the cable down against the greenback, as risk investors\u2019 risk appetite diminished. The reading of the University of Michigan consumer confidence index came in at its highest level since Jan 2008, showing consumer sentiments are improving in the world\u2019s largest economy. However, with the dark Greek cloud hanging over the global economy, this news had little effect on the markets. The Bank of England\u2019s May inflation is due this week and any hint of a higher reading will push the pounds up. The US FOMC meeting is due from the other side of the pond though European troubles are expected to dominate world headlines this week.<\/p>\n","protected":false},"excerpt":{"rendered":" Good morning and welcome to today\u2019s foreign exchange market commentary on Monday, the 14th of May. The new French President Francois Hollande has promised change to his countrymen, especially the younger generation who are yet to find jobs. The sad truth is Hollande\u2019s promises regressive that vows to take the country in the opposite direction. His refusal to reign in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[110],"tags":[],"_links":{"self":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1921"}],"collection":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/comments?post=1921"}],"version-history":[{"count":1,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1921\/revisions"}],"predecessor-version":[{"id":1922,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/posts\/1921\/revisions\/1922"}],"wp:attachment":[{"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/media?parent=1921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/categories?post=1921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mycurrencytransfer.com\/blog\/wp-json\/wp\/v2\/tags?post=1921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nGBP\/US$<\/strong> \u2013 1.6079
\nGBP\/CHF<\/strong> \u2013 1.4982
\nGBP\/CAN$<\/strong> – 1.6094
\nGBP\/AUS$<\/strong> \u2013 1.6054
\nGBP\/ZAR<\/strong> \u2013 13.1121
\nGBP\/JPY<\/strong> \u2013\u00a0128.69
\nGBP\/HKD<\/strong> \u2013\u00a012.4832
\nGBP\/NZD<\/strong> \u2013 2.0581
\nGBP\/SEK<\/strong> \u2013\u00a0 11.202<\/p>\n