Bernard Hickey talks with HiFX Senior Dealer Dan Bell about the week's currencies and markets turmoil, including the growing fears about the European money markets freezing up and the resulting volatility on currency markets.
Bell talks about the problems in the European interbank markets after the failure of a summit in Europe this week.
He looks at the disappointed prospects for a common European bond and ebbing confidence in political leadership in America and Europe.
Bell looks ahead to the August 26 meeting of central bank governors at Jackson Hole in Wyoming on August 26. He talks through the prospects for a fresh round of QE III and looks at very weak Philly Fed figures showing a slump in Mid-Western factory output. Stock markets closed down again on Friday night. The Dow closed down 1.6%.
Dan Bell is the Senior Dealer at HiFX, a UK-headquartered foreign exchange dealer with significant operations in Australia and New Zealand. It has a dealing room in Auckland. See more detail here.