Euro Exchange Rates Still Weak- Buy Euros Over 1.20 GBP And Close To 1.31 for USD

The Euro remains under pressure as debt auctions across European countries continue to show investors are demanding high yields to take up government debt.  Spain is due to approve new laws to impose greater control over regional government spending, but it seems a very familiar story of austerity and deficit targets which in all likelihood will be missed.  GBP EUR exchange rates look to have consolidated well over the 1.20 mark so certain trade volumes are being exchanged over this level and even up to 1.21.  German inflation data tomorrow may buck this negative trend for the Euro but unless next week’s raft of UK data is negative (inflation, unemployment, and retail sales) it is difficult to see anyone selling Euros to buy sterling getting below 1.20 imminently.

In my view current levels for the Euro make a great buying opportunity given the levels over the last year, and even USD EUR rates are becoming more attractive again although I don’t expect us to reach the 1.26 levels we were seeing in January.  Anything below 1.30 represents a good price from USD in my view so lets see what US Trade Balance figures do later today.

If you need to buy or sell Euros (or any other currency pair for that matter) for physical transfer then by all means get in touch and see what we can save you.  The company we work for, Foreign Currency Direct Plc, is physically based and registered in the UK and regulated by the FSA, and as such we can provide a range of services to our clients to help them achieve the best exchange rates.  If you would like a “no strings” discussion about your requirements, then feel free to e-mail Colm at cmg@currencies.co.uk quoting ERF in the subject matter and I would be happy to explain what we can do.