Monthly Archives: May 2010
Spainish Inquisition over
Yesterday news broke that Spain had put in €15 bn austerity package in a vote that was won by just one vote. It is a package that includes a 5% average pay cut for public sector workers and several substantial cost saving measures. This has given the Euro some strength and is a long coming relief to what has been a week of losses for the euro.
Clients should be wary though as this makes them viable for the support package put in across Europe earlier this week. Plus the hole that has been filled in Spain are still wide in Portugal who got a server warning by the European Central Bank earlier this week. For more breaking news as they developed and the repercussions in the market feel free to contact me directly on hse@currencies.co.uk.
What does the future hold?
With all the cracks that are developing recently in the Euro Zone and the Euro may are asking when it will stop? Will there be a better time to buy? Well note that the 17th member of the euro is still storming ahead to join, Estonia. They are 1.7 million people big and have a respectively small economy so the idea of a joint union with the euro zone is still attractive. I don’t think it will help in the immediate recovery of the euro zone but it may help quibble the rumors of a break down with countries leaving or tearing being introduced.
As we come to an end of the economical reports being release this week the markets will be lead by money movements, investors perceptions and preparation for next week’s return. Keep a watchful eye here for breaking news and updates about new information and days and events that may help your position.
Euro Rates Continue Struggle
Euro exchange rates fell to fresh two week lows against the pound as investors sold their Euro positions over fresh concerns about debt problems in the euro zone.
Again the main benefactor of this increased risk aversion was to be the USD with the greenback gaining nearly 1 percent against the single currency throughout the course of the trading day.
New European Bank Levy Proposed
Today the European Central Bank released information about a proposed bank levy they wish to impose. This is to help and support the banks against failing again, however many are still wary about the current position of the banks. This is something that countries that have tried a national approach first would have access to this, for example Greece, Spain and more recently Italy and the UK.
In my option the cracks in the Euro zone are continuing to get bigger and this is simply a small plaster that will struggle to heal it. It may strengthen in the long term but as this is something that would initially cost the banking sector the Euro weakened today. Going forward the euro may continue to weaken until some form of unity is installed between the strong north and the weak south. For more information feel free to contact me directly on hse@currencies.co.uk.
Euro falls nearly 1% against the USD
Euro exchange rates have fallen by nearly 1% against the USD and continued losses against the pound as concerns about the European banking system moved investors away from riskier assets and to the relative safe haven of the dollar. This has brought levels back close to the 5 year high for USD/EUR seen just last week and created some fantastic opportunities for those selling dollars to buy Euros.
EURO cracks widening
Through the last few days rumors have grown about the way forward for the “failing euro.” These vary from Greece leaving to Germany printing Deutsche Mark’s in case they leave. These have weakened the EURO against most currencies including the pound and the dollar, and concerns are rising about when it could stop. This week’s data to watch out for are Germany Consumer Confidence on the 27th which will move the markets. However clients looking to make a transfer with Euros should be wary about the future of the Euro.
I would not be surprised to see the volatile continue which will provide you with opportunities to both buy and sell at the optimum point. If you would like more information on any point mentioned on this website please enquire on the right of this page and one of our experts will be in contact.
Euro losses against GBP and USD
Euro rates have weakened today against the dollar and pound with heavy losses in particular against the USD. Much of the losses have been seen after Spain’s rescue of a small, failing savings bank over the weekend brought fresh concerns over the euro-zone economy.
For anyone with a Euro requirement we have a number of data sets due for release this week – of particular not we have Consumer Confidence from Germany on Wednesday morning and Inflation data also from Germany on Thursday morning.
Slight recovery for the EURO as German ripples continue
Today the EURO has strengthened slightly against the dollar as the ripples of German regulations spread. This was also helped as Germany also agreed to a multi billion euro support package to help strengthen the Euro’s world positioning. With the way that the Euro is looking currently it makes traders decisions to buy or sell very difficult so most have been moving away from risky commodities currencies like the AUD, NZD, and RAN.
Clients looking at buying or selling in the short term should keep in contact with a currency expert that can highlight favorable movements and keep you fully up to date with developments. Foreign Currency Direct is a firm with an award filled history due to their focus on both customer service and unique positioning in the market. Please fill in the details on the right of this page for more information.
Euro Rates continue strong run against the Pound
Euro exchange rates have continued improving against the pound and recovered some ground lost against the USD following the nearfive year lows seen earlier this week. GPB rates have been hit following increased risk aversion on continued worries over the global economy and one of the main benefactors has been the euro. I expect this may continue in the short term but still feel that the overriding problems in the Euro zone will lead to Euro weakness in the long run.
Euro Exchange Rates have mixed day
Euro rates have remained strong against the pound today but have continued to perform poorly against the USD.
As we close in the end of the day we have little reason to suggest much movement but heading into tomorrow we have a host of data sets that are likely to cause volatility. For anybody with an interest in the Euro and in particular EUR/GBP and EUR/USD you should pay attention to the Bank of England minutes due for release tomorrow at 09:30, a speech by Jean Claude Trichet at 17:00 and the FOMC (Federal Open Market Committee) at 19:00.
EU Trade Balance predictions
Today is the day when the first amount of support to Greece arrives and investors will be watching keenly to grade the risk of contagion, meaning the problems expanding across the other high risk countries in Southern Europe? This risk pushed the EURO DOLLAR rate to a four year low yesterday as investors waited for initial results.
EU Trade balance figures are released shortly for the EURO at 10:00 BST which will be the largest mover for the EURO today. Some readers may recall that this report has come out positive, with a surplus for the EURO for the last 3 months and if this was the case it may provider EURO sellers with a short term opportunity. GBPEUR trader may wish to take advantage ASAP as UK Trade balance figures are out at 10:00BST and are expected to weaken the pound. Clients with a EURGBP trade may find the best opportunity between 10:00 – 12:00BST.
If you are in that position and would like to limit your exposure there is a number of tools available here including Limit orders and Stop-Loss orders which helps to limit your exposure to the markets. For more information please fill out the enquiry form to the right and one of our currency expert’s will be in contact shortly.
