NEW! Investment Companies Centre

American Express Platinum Cashback Card:

FX round-up: Sterling and euro slump

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Tuesday 07 Oct 2008

LONDON (ShareCast) - The sterling and euro slumped against other major currencies due to funding concerns at European banks.

A host of European governments moved to allay fears amongst banking customers by guaranteeing bank deposits. Germany was also thought to have made the move after Chancellor Angela Merkel said: “We want to tell people that their savings are safe.”

In the UK, chancellor Alistair Darling once again claimed the government will “do whatever is necessary to maintain stability” but stopped short of announcing fresh measures to tackle the credit crunch.

Meanwhile, trading in the shares of six of Iceland’s major financial institutions was suspended as the government drew up plans to help the country's troubled banking system.

Sterling rose against the euro but extended losses against the dollar and yen after US shares took a hit following the sell-off in European shares.

All eyes are now on the Bank of England, which is widely expected to cut interest rates on Thursday.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).