Currency exchange markets 'healthy'

Dealing in currency exchange is proving to be increasingly profitable due to market volatility, it has been suggested.

According to Barclay Stockbrokers, trading volumes in foreign exchange increased by 95 per cent between February and March on the BARXdirect platform.

Between April and May, the company forecast a further rise in volumes of 46 per cent.

Paul Inkster, head of product at Barclays Stockbrokers, commented: "Recent increased volatility in currency markets has been caused by two distinct factors: Eurozone destabilisation led by Greece causing euro weakness, and UK political uncertainty causing sterling weakness."

Mr Inkster added that clients might be currency "taking a breather" due to the "unchartered" movements of the euro, but this did not mean that the outlook for May's volumes would not remain "very healthy".

Today (May 20th) the euro fell again against the dollar and at 08:30 BST, €1 bought $1.241.

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Posted by Eleanor Ward