Currency Market on November 22

November 22, 2008 · Posted in Economy 

Yahoo Finance LogoIt has been almost a week since I started to talk about the Global currency drift and the plunge of the European currencies. So, here is some latest update over the last few weeks.

First of all, let’s take a look at the conversion between British Pounds and Singapore Dollars for the last 3 months.

British Pound against Singapore Dollars on November 22

Note that I decided to choose a much closer timeframe to comment, as 1 year seems too long to observe the fluctuation trend. As seen above, there is a slight movement within the last 10 days, indicating the growth of British Pounds against Singapore Dollars. However, its strength is still not as strong, as the rate still hover around 2.3.

Next, let us see how did Euro perform against Singapore Dollars for the last 3 months.

Euro against Singapore Dollars on November 22

As predicted, Euro has demonstrated its unified currency strength across all countries in European Union (EU). The rate has risen higher than 1.9 against Singapore Dollars now and there is possibility of further increment in the next couple of days. My analysis is that there is possibility of strengthening the British Pounds with the growing strength of Euro as well.

We’ll see how did the performance between the two European currencies.

British Pound against Euro on November 22

The weakness of the Great British Pound has finally shown in this recessionary period. The compounding growing strength of Euro has certainly demonstrated that a unified currency is way more effective against global financial fluctuation. Notice the dip to 1.16 (signifying that the British Pound is almost as close as to the Euro). However, do not be arrogant, the last couple of days has shown the surge in the British Pounds. Chances are, that the UK government is unlikely to allow the currency to reach to similar level as Euro.

Hence, what does all these signify? Within the next couple days to a week or so, European currencies will tend to stabilise as far as possible. Instead of trying to rescue and bring up the currency value, the main priority is to ensure it stops dropping. So, the value is likely to maintain almost the same exchange rate. Beyond that, I’m quite certain Euro and British Pounds will start to rise 2 weeks later, just about before Christmas. That is when they’ll force the currency value to as high as possible, to cross over the New Year.

In addition to analysing these European currencies, I have also taken interest into Japanese Yens. Below is the trend shadowing the last 1 year’s trend of Japanese Yens against Singapore Dollars.

Japanese Yen against Singapore Dollars

Japanese market seems to get stronger against Singapore Dollars, as the recession period creeps in. Given the exchange rate for 1 SGD for 75 Japanese yens, the Japanese yen has strengthened, such that 1 SGD only exchanged for 65 Japanese yens. However, as news may report that Japan is currently experiencing a slow-down in the economy, the currency remains strong; simply because Japan has a fundamentally sounding economy backbone to support the country.

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