Markets Continue to React to Brussels Atrocities

The UK pound and the euro both continued to suffer declines this morning, in the aftermath of the terrorist attacks in Brussels.

Against the dollar, the pound is currently trading at $1.41, having begun the morning GMT at purchasing just over $1.42.

Sterling also depreciated in comparison to the euro, and is now buying EUR 1.26, having peaked at just over EUR 1.68, so far today.

FC Exchange analyst Daniel Wray wrote in his daily market round up: “The pound suffered as a result, and for the second day running it was the worst performing currency, losing 0.8% against the euro and 1.05% against the US dollar, meaning that the significant ground it made at the start of the month has been lost.”

The movement against the pound has been exacerbated by ‘Brexit’ campaigners, who have attached the tragedy in Brussels, to the freedom of movement principle espoused by the European Union.

As such an ‘open doors’ policy, leaves the UK more vulnerable to a similar kind of attacks in the future.

Euro Declines Against the Dollar 

The euro has fallen rapidly so far today against the greenback, falling to buying $1.19 from $1.21 as trading started GMT.

As the scale of the news from Brussels became apparent, safe havens such as the Japanese Yen and the US dollar appreciated against the euro.

The level of political upheaval is certain to effect the euro in the short term, as selling pressures on currencies and other stocks increase.

LMAX Exchange in their daily round up, said that Euro setbacks in the face of the Brussels terror attack were well contained, with the major currency relatively unfazed by the event.

Although they warned that another round of solid US manufacturing data, coupled with the call from Philadelphia Fed President Patrick Harker to “get on” with interest rate rises, have all helped to crank up the pressure on the euro.

Trade is expected to enter a quiet period  as we approach Good Friday and the Easter weekend.

Germany Announce Public Debt Decline 

At the end of the fourth quarter of 2015, the public debt of the regional Länder and all municipalities and associations of municipalities in Germany, including all core and extra budgets, amounted to 2,025.6 billion euros.

This was a decrease in arrears by 22.7 billion euros, from the fourth quarter of 2014.

Year on year, compared to the final quarter of 2014, debts were reduced by 23.7 billion euros.

Meanwhile, provisional data in Spain’s latest International Trade in Services Survey for the third quarter of last year, revealed that  services exports reached 15,888.6 million euros, an increase 6.6% in annual rate.

There was a higher rise in  services imports, which  increased 13.4%, and are placed at 10,902.3 million euros.

Also, the annual rate of the industrial prices stands at a disappointing minus 5.7% for February, 1.5% lower than what was registered in the January figures. The monthly variation rate of the Industrial Price Index is -1.3%