Forex Bazaar

It has been a while now and we will start the articles again.  Let’s begin with this past week and Sterling, which continued its slide against the Euro as a result of investors speculating the Bank of England will be slower to raise rates in comparison to its European counterparts.  Sterling slid by over 1% against to the Euro to 87.38 pence.  Against the USD it closed just over $1.62.

The Euro also strengthened as it appeared thatin the past week the Eurozone has reached a pact to coordinate economic policies in the form of the new European Stability Mechanism.

The most interesting story of the week, however, was the G7 intervening into the rapid increase of the Yen sparked by investors as a result of the uncertainties stemming from the recent natural disasters plaguing the country.  In order to reverse this inflation, the G7countries agreed to an aggressive Yen sell off so that the Japanese economy cannot only support the country’s desperate need for recovery but also keep its fragile economy in a healthy state.

We genuinely hope the country recovers from its misfortunes soon.