Most foreign exchange companies can send money to locations in Oceana but many can not receive payments due to banking restrictions and licensing laws as the currency company need to have an office located in all banking counties of Oceana.
Pound High Against Australian Dollar and High Yielding Currencies
Sterling Exchange Rates to reach multi month highs against the Australian Dollar and rise significantly against the New Zealand Dollar and South African Rand due to the worldwide move to risk aversion also showed in the commodity markets with oil falling over 3% to under a barrel but gold reaching a new high of 45 per troy oz.
In the US, the Conference Board corrected its leading economic index for China to an April gain of 0.3% from a previously reported rise of 1.7%, a sharp revision that undermined confidence in China's ability to sustain strong growth.
The correction prompted investors to turn against riskier assets, adding to a global sell-off. The Shanghai composite index fell 4.3 percent to a new 14-month low.
"The hint of moderation is what alarmed markets as it comes in the context of fragile U.S. and European economies at the time we look to Asia as the global economic savior," said Peter Boockvar, equity strategist at Miller Tabak + Co in New York.
The CBOE volatility index VIX, known as Wall Street's fear gauge, rose 16% to a session high of 34.69, its highest level since early June.
The Sterling foreign exchange rates has soared to a never before attained level. This makes it highly month highs of Sterling against the Australian Dollar as well as the currencies of New Zealand and South Africa. This rise is a result of the worldwide move to risk aversion which has shown its affect on the commodity markets. The price of oil has been noted to fall over 3% to under $76 a barrel while gold has reached a new height of $1245 per troy oz. The Conference Board of USA has corrected its earlier statement that China held the leading position in the world’s economic index. This correction in the claim undermined China’s confidence of holding up a sustainable economic growth. This revision in statement is destined to affect a lot of fields and bring in newer changes.
For example, once this correction had been made the investors preferred to turn their back against the risky assets where investing can be a little unwise. This has in turn resulted in a global set off in foreign exchange rates. To make matters worse the composite index of Shangai fell by a percentage of 4.3 which means a fresh low period of 14 months.
The only hope of moderation comes from the context of the fragile U.S. This has given the weak markets a new hope of resurgence. European economies have started to bank on the Asian markets in search of a global economic savior. It is the Asian markets that is still providing hope to the European markets and assuring them of a brighter future. This is what Peter Boockvar, equity strategist at Miller Tabak + Co in New York believes and surmises from the present scenario. The CBOE volatility index VIX has been seen to make a 16% rise, something which considered to be a novel move since last June.