Surprising turn of events

14 June, 2012

Tom Arnold

Yesterday saw a surprising shift in sentiment, with the Pound losing ground against the Euro and the Dollar, dropping below key resistance levels against both currencies. The main reason seems to just be a shift in sentiment, coupled with some overselling being corrected and possibly some profit taking ahead of the Greek election.

The reason this was so unexpected, is that news had been fairly constant in its theme, with Spain being downgraded by Egan Jones to junk status and by Moody’s to BAA3 – 1 step above junk. So really only a continuation of the Euro negative news, hence the surprise as the Euro strengthened against the Pound by just over a percent.

Maybe the markets know something we don’t and with both Chancellor Merkel speaking in the German parliament, and the ECB releasing its monthly report this morning, maybe there is some good news to come from the Eurozone, otherwise today is fairly light on data.

Focus on Euro 2012

Two more great games at the European championships yesterday with the Portugese grabbing a last gasp winner, to defeat Denmark, and the German’s hanging on to beat the Netherlands despite a late goal and stern fight back from the Dutch. So far the Germans have beaten two of their Eurozone colleagues – Portugal and Holland – both countries on the list of troubled economies, who will possibly need bailouts soon – with Chancellor Merkel known to be an avid football fan, read into that what you will. The Danish are still in with a shout of progression, and with sending money to Denmark in Krone another slightly more exotic currency available from Currency Index, do let us know if you have any requirements.