Daily currency report
A $1 trillion global emergency package to stabilise the euro unleashed a spectacular rally in world stocks but analysts said EU leaders had only bought time to tackle deep seated fiscal problems. The "shock and awe" rescue plan was the biggest since...
A $1 trillion global emergency package to stabilise the euro unleashed a spectacular rally in world stocks but analysts said EU leaders had only bought time to tackle deep seated fiscal problems. The "shock and awe" rescue plan was the biggest since the collapse of Lehman Brothers in 2008.
Sterling
Sterling rose against the dollar and the euro. The Conservative Party gained the most seats in the general election but fell short of a clear majority in Parliament and has been in talks with the smaller Liberal Democrats to allow it to form a government. The two parties said they had made progress in talks which encouraged investors by the way negotiations appeared to be going.
US dollar
With very little significant data coming out from the US, the greenback's direction was very much dictated by decisions from this side of the Atlantic. The dollar lost ground against the euro and the pound only to claw back and regain ground.
Euro
European central banks began buying eurozone government bonds under a $1 trillion global emergency rescue package, sending the euro and European stocks and bonds surging on relieved markets. The "shock and awe" rescue plan left long-term questions about whether Europe's weakest economies can manage their debt and how the European Union can develop more coherent economic and fiscal policies to underpin the single currency.
Japanese yen
The Japanese yen was down against both the euro and pound as an element of risk appetite returned to markets. However, doubts over the eurozone's long-term outlook kept advances in Tokyo stocks from matching those of US equity markets and the yen remains open to a safe haven-fuelled bounce.