Keeping Track With Global Currency Drift

November 11, 2008 · Posted in Economy 

Stock Market ClipThe next few weeks, right up to next year, is certainly going to be very interesting; I guarantee you that! Just only yesterday, I was tracking on the currency exchange on Yahoo! Finance, I sensed a strong trend of Europe market recovery coming through.

Situated in Singapore, I found that foreign currencies against Singapore dollars have fallen drastically over the past several months. Despite the bailout by the United States and other major fundings, the future outlook on foreign currencies looks unlikely to be promising.

Check out the chart below!

GBP against Singapore Dollars 

Euro against Singapore dollars

From this perspective, it seems almost inevitable that the Euro and British Pounds are likely to continue falling after Obama’s presidential victory a few days ago. The rate (against Singapore dollars) was phenomenal! For the British Pound, the rate has dropped to a considerable low value of less than 2.4, whereas the Euro rate is fluctuating at about 1.9. Never has such situation occured in the past, especially in the case of the Great British Pound (see below).

GBP against EURO

From the way things are going, such occurrence will not last long; soon, the rate for both currencies against the Singapore dollars will rise back to the norm. For what I analysed, the general rate of GBP:SIN is 1:2.5, anything lesser than that is considered unstable. However, it won’t be an over-night thing; probably at least another 5-6 weeks before the rising trend starts to appear.

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