Monthly Archives: October 2011
Euro strength following overnight release – confidence is back but for how long?!
The Euro has had a fine day against most major currencies today after some details came out from the well followed European summit.
Essentially confidence has be installed once again but personally I feel this will be short lived as the problems are just so big when you look a little deeper into them.
Italy alone has so much to pay out next year that I have no doubt we could see things all come to a head once again without the next few months, and in my opinion these measures are purely delaying the inevitable……. At a great cost!
This could be a great opportunity for those selling Euros to buy another currency, if you do have a transaction like this to carry out then do feel free to contact me directly djw@currencies.co.uk and I will be more than happy to assist you with your requirement ensuring you get not only a great rate of exchange but also a high level of customer service too. I look forward to speaking with you.
Breaking News Updates For Sterling Euro Rates And EU Summit
As mentioned last week key players in the Eurozone crisis have downplayed the importance of the summit to try and dampen expectations that an all encompassing solution will be announced. At the time of writing the EU leaders are just arriving so expect some volatility on various currencies. The summit will aim to solve the Greece problem, bank exposure, and how the EFSF will be used but I think there is likely to only be some general broad agreements on parts of the 3 issues. Sterling euro rates have been pretty range bound in the last two weeks but if no solution is reached the Euro could drift higher against the pound and I would expect the Dollar to strengthen back with the uncertainty. If you would like to be informed of any breaking news affecting your currency transfer then please e-mail cmg@currencies.co.uk and I would be happy to update you.
Euro Summit Announcement Expected To Be Delayed
Any announcement from this weekend’s summit to tackle the Eurozone debt crisis is expected to be delayed, and German officials have already stated earlier this week that any agreement is not likely to be as far reaching as some sectors originally expected. To me it suggests the crisis is likely to continue to run and with riots once again breaking out in Greece I cannot foresee any quick solution. I think a controlled default for Greece would be the best finance ministers could hope for and hope to prevent any contagion to other Euro states like Portugal, Ireland, and Spain (the latter two have made strong inroads in tackling their own budget deficits). The Euro has weakened again this morning against the Pound after a volatile week ranging from 1.1360 to 1.15+ but an anticipated indecisive outcome for the weekend will likely mean the Euro will drift further through next week. If you have a requirement you would like the team here to keep an eye on then please feel free to e-mail me at cmg@currencies.co.uk
Pound Slips Further Against The Euro As UK Unemployment Rises
UK unemployment figures yesterday suggest recovery in the UK is stalling and endorse the Bank of England’s view to try and kick start the economy recently. As a result the pound has been slipping at a time when the Euro is gaining in strength due to greater confidence following Slovakia’s approval of the Euro bailout extension. GBP EUR rates have moved over 3% lower from last weeks 7 month high and highlight how difficult it is to trade in such a volatile market. If you do have a requirement and want someone to keep an eye on a target rate then please call 01494 787 465 and ask for Colm
Euro exchange rates still under fire although rescue talks calm fears
Euro exchange rates are still under heavy pressure although this has eased as fears over the sovereign debt crisis eased slightly as further bailout talks continued. However the credit downgrade of many UK institutions and Belgium’s bailout of Dexia bank highlight just how volatile GBP EUR rates are likely to be. The lack of an interest rate cut last Thursday helped create a little more confidence as it suggests the ECB do not feel things are not as desperate as to merit a cut (the benefit of which masy be questionable anyway) and the recapitalisation of European banks has halped the Euro to fight back to levels close to Thursdays high against the pound. If you need to buy or sell Euros and want to take advantage of the current volatility then please feel free to call 01494 787 465
Sterling Euro Rates Volatile Following Central Bank Decisions
Yesterday saw huge movements on GBP EUR rates as the Bank of England extended the Quantitative Easing program by £75bn. Sterling immediately lost ground against the single currency dropping by 1% in minutes and focus switched to the European Central Bank and Jean Claude Trichet’s last meeting as the President. There was an outside chance of an interest rate cut but this failed to materialise and the Euro held steady. Earlier in the week rates were over 1.17 and late yesterday they were closing on 1.1450. Already this morning we are approaching 1.1550 so expect continued volatility.
Euro Dollar rates will be dependant today on the outcome of non farm payroll data later this afternoon so be prepared for this, and as ever watch out for any breaking news regarding the European sovereign debt situation and Greece. If you would like more info please call +44 1494 787 465.
Euro Still Slipping On Greece Fears
Euro exchange rates are still slipping after the weekend’s news that Greek PM Papandreou admitted Greece cannot meet its burdens to receive the next bailout tranche. Whilst it seems inconceivable that Greece could be thrown out of the Euro it seems ever likely that a controlled default may be the only option. Added to the fact the ECB may cut interest rates on Thursday in Trichet’s last stand, the Euro should remain under pressure this week. The only saving grace if you are selling Euro and buying GBP is the possibility of and extension of the Bank Of England’s Quantitative Easing program- a move that could seriously damage the pounds recent run against a host of currencies.
