Foreign currency exchange markets 'volatile'

Foreign currency exchange markets are particularly volatile at the moment, a report from HSBC has revealed.

The main source of volatility is coming from the US, where the Federal Reserve is facing a massive overhaul bringing with it uncertainty in trading.

Despite this, an increase in dollar purchases has indicated that traders are still looking to the US currency for safety.

However, the report from the international bank said that markets are "undergoing a transformation in which the rules of trading and the reaction to political events are unclear".

It concluded that "uncertainty and volatility" are likely to increase with the run of political changes that lie ahead.

The dollar is still trading relatively well against the pound with one dollar buying £0.619 at 09:00GMT yesterday.

Against the euro, the currency is continuing a gradual rise in value with one dollar coming in at €0.712 at 09:00GMT yesterday.

Click here to make an International Money transfer (www.hifx.co.uk/online)

Posted by Thomas Smith