Investors continue to capitalise on FX markets

21 January 2009

While Sterling experienced record falls in 2008 and has experienced new lows against the dollar this week, the savvy investors have consistently used this as an opportunity to generate returns by trading more actively in FX markets. Four out of the five most actively traded currency pairs on the Barclays Stockbrokers FX trading platform have involved Sterling, although the most actively traded pair continues to be the Euro/US Dollar pair.

FX trading allows experienced investors to "short the market" and speculate that a currency will continue to fall versus another currency and therefore gain returns from trading in the right direction. FX on BARX offers all the necessary tools for skilled investors to gain exposure to the world's largest market, Foreign Exchange.

Barbara-Ann King, Head of Proposition, Barclays Stockbrokers commented: "We have continued to see our FX clients capitalising on the volatile currency markets in recent months. Research from Barclays Wealth continues to point towards weakness in the Euro following the ECB's implementing a recent rate change, there is the prospect that the Euro will slide further in 2009. With this week's inauguration of Barack Obama, and increasing belief that the US may be the leader out of the current global economic woes, our clients also seem to be attracted to a possible US Dollar recovery."

Michael Sneyd, FX Strategist, Barclays Wealth commented: "Despite the Euro having fallen around 9% against the US Dollar and Sterling from their respective peaks at the end of December, the Euro remains expensive relative to its long-run fair value."