March Curency Update

Dear USAdvisors readers,

I am pleased to bring you the current market news for March. If you need to exchange and transfer funds, please contact us today - we can help! You will have more US Dollars to spend on their property purchase, immigration or property maintenance.
 
It pays to use the experts.         

GBP/USD
How low can Sterling go? Euro gets no relief from Strong Dollar.
February proved to be another uncomfortable month for Sterling as the US Dollar pushed the Pound below the key market level of $1.50. Both the UK and the US GDP figures for the 4th Q of 2009 were revised up, 0.3% and 5.9% respectively. A clear indication as to the rate of recovery in the US and the bumpy road ahead for the UK.

And so the Dollar remains in a strong position with traders buying on strong US fundamentals and buying even more aggressively as a safe haven play. Continued concerns over Greek national debt, the possibility of the Spanish government following suite, renewed concerns over Dubai World once again asking to delay its debt repayments, all frighten traders enough to move into long Dollar positions.

As Prime Minister Gordon Browns deadline to call a general Election in the UK fast approaches, opinion polls have taken centre stage as to setting traders sentiment on the Pound. Browns Labour party closed the gap on the Conservatives to just 6 points suggesting the possibility of a hung parliament. With neither party having a clear majority this would render the Prime Minster useless to tackle Britain’s very serious deficits effectively. Between now and the election will be a dangerous time for the Pound with only more downward pressure expected.

Trading range: 1.48 – 1.58

EUR/USD
The political finger has been pointed again in the direction of hedge funds who are now being blamed for aggressively short selling the euro, effectively betting on the currency going even lower. Both Greek and Spanish governments have raised concerns over what they believe are attempts to destabilize the Euro. A weaker Euro may improve the regions outlook in the next quarter, as exporters bottom line figures are sure to benefit. Expect further pressure on the ailing single currency over the next few weeks.

Trading range: 1.34 – 1.38

CAD/USD
The commodity currencies, most notably the Canadian and Aussie Dollar have continued to perform well. The reserve bank of Australia raised its interest rates to 4% inflicting a 25 year high against the Pound. The Canadian Dollar, supported by strong Canadian fundamentals and higher oil prices, has enjoyed strong levels particularly against the Greenback, trading at the top of its current range. The Canadian unemployment rate dropped to 8.3% as 43,000 new jobs were created in the month of January. Further evidence of a continuing stabilization of the Canadian economy. Parity anyone?

Trading range: 1.02 – 1.06

To view currency exchange fluctuation charts, please click on the logo below:
"http://www.moneycorp.com/chart/charts_pop_usd.html"

Sincerely,
 
Stella Giudicelli
Business Development Manager
Moneycorp, Inc.
Office: +1 407 352 5890
Cell: +1 863 255 9081
Email: "mailto:Stella.Giudicelli@moneycorp.com" Stella.Giudicelli@moneycorp.com

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