On Friday Standard and Poors (S&P) downgraded 9 the European countries including the downgrade of France and Austria from triple A. This news now means these countries will have to pay a higher level of interest on their debt and credit will be harder to obtain, this will only put more pressure on an already struggling economy. S&P stated they had downgraded the countries because the austerity measures which had been put in place were not enough to keep the countries out of recession especially with their exposure to Greek debt. This all comes on the same weekend where the IMF stated Greece had until the end of March before they defaulted and then potentially were at risk of leaving the Eurozone.
Following this news Sterling pushed back up towards the year high again presenting some excellent opportunities for those clients looking to buy Euros, however as was highlighted last week every time we have seen Sterling Euro push past the 1.20 mark the markets have then fallen back significantly in the following months. So, if you need to buy Euros speak to one of our experienced currency brokers who will be able to explain all the options open to you and help you make the most informed decision on when to trade.
While the Eurozone crisis rumbles on the US Dollar continues to strengthen as more money is invested into the “safe haven.” Should the focus remain on European debt then it is very possible that the Sterling Dollar exchange rates will fall below the 1.50 mark. However, despite this recent trend of US Dollar strength the fact that President Obama has notified Congress they need to increase the debt ceiling so the country can borrow more is still hanging over the head of the country and in the next 15 days that Congress has to decide on whether to pass the increase there is likely to be a lot of volatility. Speak to our currency brokers today to discuss your requirements and how the information in this report could impact your transfer. Call us today on freephone 0800 328 5884 or email firstname.lastname@example.org