US$ -  £     1.4160

£ -  €         1.2990

€ - US$      1.0900

IR – US$    68.13

RMB - US$  6.5765

Over the course of last week, the US Dollar strengthened against a range of currencies – particularly those of emerging markets – although the US Dollar/Chinese renmimbi rate was essentially stable. The trend of a generally strong Dollar is expected to continue for some time yet: after a decline of 5.75% over the last year, renmimbi speculation appears to be moving to the forward market arena, with the Chinese currency quoted at 6.90 to the Dollar 12 months forward.

This represents a depreciation of a further 4.9% over today’s rate.  Although China’s growth rate for the fourth quarter of 2015 slowed to 6.8%, the slowest pace for 25 years, it nevertheless  triggered a 3% rally in Chinese stock markets on Tuesday, 19th January 2016 amid expectation of further stimulus measures being introduced by the government. Today, however, the Chinese stock market rally proved to be short-lived with a 2% decline in the main Shanghai index, although this was nothing when compared to the declines seen in Europe.  However, what appears NOT to be fully discounted in the overall FX markets – at least yet - is the growing tension in the Middle East between Saudi Arabia and Iran. What has driven – and to a great extent still drives – the FX markets are the twin forces of China and the slumping price of oil, now well below US$ 30/barrel. Today (20th January) has seen a marked decline in Sterling against both the Dollar and Euro as a result of Mark Carney’s comments yesterday that any interest rate rises will need to be postponed in view of the uncertainties surrounding global economy. 

 

Bakery Solutions
Consistency, increased shelf life, softness, crumb size, clean label, crystallisation, well-being, flavour profiles and so on…  -  Such are the ...
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Beverage Solutions
When it comes to Beverages -  We know what we are talking about!   We are experts in this field and have a highly skilled team of Beverage ...
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Confectionery  Solutions
Our food technologists are all highly skilled chefs with backgrounds working in catering for high-end restaurants and for large scale manufacturers ...
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Dairy Solutions
A supplier to some of Britain’s biggest and well known yoghurt and ice cream manufactures - if you've ever had a yoghurt or ice cream that has ...
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Food Service
At FDL we work with some of the biggest coffee houses, food chains and food service names in the industry, supplying them with an array of added ...
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Pharmaceutical Care
Encapsulation, Performance, Flavour delivery systems, aromas, viscosity, flavour masking, vitamin blends… These are but a few of the services we ...
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About FDL

 

FDL is a leading global supplier of specialist ingredients to the Food, Beverage, Fragrance and Chemical industries.

 

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FDL Head Office
Devon House
58 – 60 St Katharine’s Way
London
E1W 1JP
United Kingdom
 
Tel: +44 (0) 20 7488 0777
Fax: +44 (0) 20 7265 5285
fdlgroup@fdl.co.uk