What did the traders in European market worried ? What step was taken by the British government to save them?
Answers
Answer:
In the late 1500s, European explorers started sailing east for trading purposes. The Spanish and the Portugese were originally dominant on these new sailing routes, but after the destruction of the Spanish Armada in 1588 the British and Dutch were able to take more of an active role in trade with the East Indies. The Dutch initially took a lead in this, focusing mainly on spices and in particular the trade of peppercorns.
Concerned that the English were falling behind to the Dutch on these new trading routes, on the 31st December 1600 Queen Elizabeth I granted over 200 English merchants the right to trade in the East Indies. One of these groups of merchants called themselves Governor and Company of Merchants of London Trading into the East Indies, later to become simply The East India Company.
Answer:
Traders are far from convinced that this week’s central bank meetings will be a game changer for the euro.
Options gauges show that expectations ahead of the Federal Reserve and the European Central Bank reviews are low, even though policy makers are under pressure to do more to support their economies through the coronavirus recession.
Investors are more concerned over the long-term however, as the uncertainty that surrounds the pandemic prevails.
The relative premium to hedge the euro over the next week reached its highest in almost two years on Thursday as investors adjusted their positioning before the policy decisions. Just two trading days later, traders are now paying a more muted price to protect themselves against abrupt currency moves, with the spread between implied and realized volatility in the euro-dollar near parity.