In a shock move last night Britain pulled out of talks with other Eurozone leaders as he stated the treaty that was being proposed was not in Britain’s best interest. Many UK banks and businesses will be very pleased to hear Cameron taking this stance although the French and Germans were not quite so pleased! French PM Sarkozy stated that Cameron’s demands were unacceptable while UK foreign secretary said that the UK was not going to be marginalised from the rest of Europe as a result. Analysts are split on whether this was a good move for the UK and Europe, so far the consensus is that Europe can now go ahead with a treaty to “fit” the European member states and in the short term this move could actually help protect the UK and help the Euro economy with its debt issues. However, in the longer term should Europe overcome their economic crisis the UK may have upset one of its biggest trade partners which could prove costly.
While Cameron is being portrayed by some of the media as a bit of a hero only time will tell whether this was the right decision for the UK. One thing is for sure this story still has some way to run. The talks are set to continue for the rest of today and into the weekend so we are anticipating more volatility for Sterling Euro exchange rates.
If you need to buy Euros then speak to one of our currency brokers today who can discuss with you all the contract options we offer that can help take some of the risk out of the market. One option is a forward contract where, for a small deposit, you can fix your rate of exchange at today’s rates for a period in the future. Call us today on 0800 328 5884 to find out more.