Making Large transfers has a great impact on currencies
Large transfers have a great impact on currencies
Currency markets are rapidly changing, so people are seeing different results every hour and sometimes even faster. Large transfers have a great impact on currencies, increasing their value in the world market. However, there are other ways that might change their values, and politic is one of them as always.
Therefore, many experts think that under Trump's presidency dollar will become much stronger. It has had a constant growth even under Obama's administration so that growth continues and becomes higher each day. At the beginning of this year, there was some information that Trump will be trying to weaken the dollar, but it turned out to be completely fake.
After the last announcement of two Fed high officials, the dollars has raised up to 1.0%, comparing to Japanese Yen and the majority of other world currencies. That is a significant sight in what direction the dollar will go this year and in the near future. They said there are higher chances for tightening US monetary policy and these statements produced the growth. People in the markets have had confidence in their knowledge and started investing more money in the dollar.
As the main rival, Euro has not had such a good time. With the political crisis in the EU, it has more and more problems to maintain the current position. Opposition against it is growing every day in many EU countries as many are seeing it as the main cause the financial crisis and the decline in living standards. But the stake is too high, and it will continue to withstand for a while with an uncertain final outcome.
On the other side, the British Pound is having a good time these days. It has raised up more than 0.6% in comparison to the Australian Dollar. Temporary or not, citizens will see in the coming days. Beside GBP, next interesting currency is certainly Swiss Franc. It is strong as a rock for years and the financial crisis only helped it. The Swiss Government has done everything possible to curb its uncontrolled growth and sometimes succeed in their intention.
However, the British Pound has definitely managed to stop CHF today and to reverse the growth in its favor. That has been important for both sides because Swiss Franc has grown up in relation to GBP in the last few weeks. Now the string is terminated and GBP has started returning the previous value.
Each day, there is some interesting news on the financial market and today, Brazilian officials have announced that their country had a trade surplus of $4.560 billion in the last month. According to their information, export was $15.471 billion, while the import was $10.912 billion. That is definitely a good news for Brasil, but now all countries were so lucky.
For example, Mexico announced a trade deficit of $3.3 billion in January, while information for the last month is still unknown. All this will be significant in the future days and will have an impact on their local currencies. Being competitive on the market is an important thing to preserve the stability of the currency. That has been currency news - Monday.