Mark Bolsom, Travelex

Market commentary: Travelex

Mark Bolsom is Head of the UK Trading Desk at Travelex Global Business Payments.

Travelex Global Business Payments is a global foreign exchange specialist providing payments and receipt of domestic and international funds for businesses of all sizes. For more than 30 years, Travelex Global Business Payments has provided clients with sophisticated market knowledge, leading edge technologies and practical and innovative solutions tailored to individual requirements. Every year, Travelex Global Business Payments processes payments around the world over 35,000 businesses to 1 million beneficiaries.

Moody’s downgrade for Greece an ugly reminder for investors

8 March 2011
The euro’s gains have been interrupted by a sovereign rating downgrade given to Greece yesterday by rating agency Moody’s. The downgrade was an ugly reminder to investors that the peripheral debt crisis has not gone away.

ECB remains front runner for interest rate hikes

7 March 2011
Last Friday’s US jobs report was encouraging, but not good enough to alter the outlook for interest rate differentials, which has been the key driver of currency markets. The dollar continued to face selling pressure as market continue to view the ECB as the front runner for interest rate hikes.

Trichet rattles currency markets

4 March 2011
After Trichet rattled currency markets in yesterday’s session a degree of calm has been restored in front of today’s US non-farm payrolls release. The euro traded higher against all major currency crosses in yesterday’s session after the head of the European

Dovish tone in the US stands in contrast to expectations of ECB’s conference today

3 March 2011
The euro has started trade this morning near yesterday’s high against the US dollar. The dollar faced selling pressure yesterday despite better than expected ADP employment figures that showed job creation stood at 217k. Investors instead focused on Fed Chairman Bernanke’s testimony...

Currency markets taking a ‘risk off’ stance to trade this morning

2 March 2011
Currency markets are taking a ‘risk off’ stance to trade at this morning’s open, which is supporting safe haven currencies such as the Swiss franc and Japanese yen, while riskier currencies such as the Aussie and New Zealand dollar have seen losses.

Currency markets driven by interest rate outlooks

1 March 2011
Manufacturing surveys are expected to be released in the US, UK and EU today. All of the surveys are expected to show strength in the sector. Currency markets will be driven by interest rate outlooks as investors look towards comments

BoE juggling between sky high inflation and fragile economic growth

25 February 2011
The Confederation of British Industry yesterday reported a disappointing retail sales figure which further highlights the precarious position the Bank of England finds itself in, juggling between sky high inflation and fragile economic growth.

Negative sentiment weighs on the euro

22 February 2011
Investors shunned risky positions on Monday as tensions in the Middle East grow and there is a serious possibility of civil war breaking out in Libya, Africa’s largest oil producer. Naturally the safe haven dollar, yen and Swiss franc rose as market players...

Violent clashes in the Middle East keep safe haven currencies in demand

21 February 2011
G20 leaders gathered over the weekend aiming to address global imbalances which helped facilitate the recent credit crisis. Finance ministers and central bankers agreed on a list of measures which will be monitored in order to identify economic fault lines in their early stages.

Swiss franc maintains tradition of sought after currency during geopolitical tensions

18 February 2011
Escalating protests in the Arab world are turning violent as anti-government protestors clash with security forces. Consequently the Swiss franc, traditionally a sought after currency in times of geopolitical tensions, rose sharply on Thursday...

Markets reminded of the challenge facing the UK economy

17 February 2011
The Bank of England’s quarterly inflation report, released on Wednesday, reminded markets of the challenge facing the UK economy with inflation expected to rise and growth forecast to fall in 2011. Bank of England governor Mervyn King, speaking following the release, did at least imply that rate increases are to be expected however they will be more measured than what analysts are expecting. Consequently the pound tumbled across the board bringing to a halt its recent rally.

Sterling outperforms its major counterparts

16 February 2011
Sterling outperformed its major counterparts on Tuesday as traders increased bets on the Bank of England raising interest rates in order to combat inflation sooner than expected.

Investors gear up for inflation data

15 February 2011
Sterling remains near 1-month highs against the euro as investors gear up for inflation data over the next two days which may go along way in shaping monetary policy in the UK. Consumer price inflation is forecast to rise to 4% in January...

Risk appetite back into currency markets as geopolitical tensions ease

14 February 2011
Geopolitical tensions eased at the end of last week, which brought risk appetitie back into currency markets, which helped the so called commodity currencies, but weakened some of the safe haven currencies such as the yen and Swiss franc.

Safe haven currencies could see gains as geopolitical tensions in Egypt rise

11 February 2011
The Bank of England left its monetary policy unchanged at yesterday’s MPC meeting. The decision was widely expected, but there had been a small chance that the committee would raise rates.