This week has not been the greatest for the Euro noticing a fairly large slide in value following a couple of poor data releases and the continuing worry over soverign debt problems and just what will pop up next.
My personal opinion is that there are numerous problems in Europe that are yet to fully surface and at some point in the next few months they may well do so, and in a big way.
Over the past few years the Eurozone has been extremely good at sweeping problems under the carpet where as the U.K seems more than happy to shout about theirs…. hence the fact the Euro had gained a huge amount of strength against the Pound.
I think come spring we will be back in the 1.20s on this particualr currency pairing so if you have Euros to sell it may be prudent to consider your options sooner rather than later, however if you are looking to buy them then be wary that although we should end the next couple of months in a better position the Pound may have a few blips along the way, following poor weather in the U.K in December and the affect this will have on data for the U.K released in january.