Tag Archives: euro debt
A former advisor to China’s central bank has said China should stop buying Euro bonds and should only do so if certain conditions are met. Whilst Yu Yongding’s views may not represent official Chinese policy, and China has regularly expressed confidence in the Eurozone, they have yet to lay out any concrete support package should the single currency remain in trouble. China holds over a quarter of its FX reserves in Euro and so its approach to this could be instrumental in any long term solution.
Euro Dollar exchange rates have moved around 6% in the greenback’s favour over the last few weeks as the Dollar has strengthened amidst a new flight to safety, especially as the alternative option, the Swiss Franc, has been made a lot less attractive by the Swiss National Bank.
Bank of England Minutes are released in 25 minutes so will be key to short term GBP EUR rates- be ready to move quick on any news of Quantitative Easing being discussed or not.
Today the Euro has strengthened against most currencies as the markets swing back from the large losses seen over the last few weeks. Clients changing euros may like to take advantage now as in my option I think the Euro will continue to weaken.
Some leading economists now think that EURUSD could reach parity this year as many think it is becoming more and more likely that the Euro will break down in the coming 5 years. And you can understand why, with more and more countries traditionally seen as safe falling into despair. The stark figures showing that over 65% of loans to countries within the euro are provided by other states, this in my option is one of the largest reasons why I think the debt illness is likely to spread further.
If you currently have Euro’s that you are looking to move to another currency to protect your exposure, feel free to get in contact for further, more detailed information on your particular position.