I am sure it is not too surprising that once again we are faced with talk surrounding the Greek debt crisis. With the likelihood of the debt talks being resolved in the coming weeks slim I expect the Euro to come under pressure. Currently the main problem is that the IMF would like to look at restructuring some of the debt in the Eurozone whilst other creditors want Greece to be on the hook for the full amount. What will happen? Well probably nothing immediately but clients looking to buy and sell the Euro should be very careful as this issue threatens some volatility that might not be quite as predictable for the Euro as in the past.
In the past the worries over Greece had seen the Euro weakening as it threatened to trigger problems in other Eurozone countries. However with the problem now mainly isolated to Greece the fears of previous years are lower. Greece itself is a very small part of the Eurozone and this will lead to less problem than some might hope.
The overall position for Euro sellers should be one of caution, I feel clients looking to sell Euros should be looking at the potential for the Euro to weaken quickly and unexpectedly. I suspect this issue coupled with the potential political problems in the future for France, Gemrany and Holland will all start to feature heavily in the coming weeks. Many clients looking to sell Euros are hopeful the pound will weaken in the coming days and weeks but there is a strong likelihood the pound will actually perform better now we have more certainty over the Brexit.
If you have a Euro transactions to buy or sell in the future then I would be making some careful plans sooner rather than later as we could see some unexpected developments in the market which would make your transfer more expensive. For more information at no cost or obligation please contact me Jonathan by emailing email@example.com or calling 01494 787 478. I hope this is all well received and look forward to hearing from you in the future.