Finance ministers within the Eurozone will be meeting later today to to discuss a further bailout for Cyprus. The cost of the bailout originally of €10bn has seemingly been underestimated and the figure being talked about is apparently €23bn according to Cyprus’ creditors. The EU & IMF have hinted that they will not add any more than the €10bn already agreed so Cyprus may have to raise funds from elsewhere. At this moment in time Cypriot banking controls are likely to last for another 7 days which includes limiting how much money can be transferred out of the country. The effect this is having on the Euro slightly negative and investors are also moving funds away from the Australian Dollar as risk appetite diminishes.
Although news in Europe is slowing down Aussie Dollar strength it is still testing records levels against both Sterling and the Euro. With shares in Australia boosted from the China Australia currency pact from earlier this week we could see next week more positive movement for the Australian Dollar testing levels of 1.45 again.
US Retail Sales are due out this afternoon which often causes volatility on the global currency markets as the US is seen as the global barometer of confidence so if US retail sales are better than expected we could see the Aussie Dollar strengthen up further. To be kept updated with data releases or if you have a question about how this will affect exchange rates feel free to contact me directly Tom Holian [email protected]uk Also if you have a currency requirement and want to compare rates with your bank please get in touch. Working for one of the UK’s leading foreign exchange specialists I am confident that I can save you money.