MARKET NEWS 12TH MAY 2010
Good Morning
GBP
It was yesterday revealed that the United Kingdom has a new Prime Minister, David Cameron. He will lead the British government in a coalition of both the Conservative and Liberal Democrat Parties. After the former Prime Minister Gordon Brown resigned the Pound was given a boost against both the Euro. It will remain to be seen whether the coalition government will help the UK government over the coming weeks and months.
EUR
The Euro fell against the Pound as investors believed that the economic situation throughout Europe is in a much more fragile state than Great Britain. It was announced early this morning that Germany’s Gross Domestic Product rose year-on-year from -1.5% up to 1.7%. This greater than expected data release could help boost the Euro.
USD
The US Dollar boosted higher against the Euro after Federal Reserve Chairman Ben Bernanke stated that the new European economic package was only a temporary and that there were more significant risks ahead. This helped push the US Dollar higher along with an increase in the US Economic Optimism Index which moved higher.
Chris Canning.
Archive News
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