Credit ratings agency Fitch have downgraded five Eurozone economies including Spain and Italy stating the economies financial weakness through the debt crisis. Italy was downgraded two notches to A- while Spain was downgraded to A, both a long way from the top triple A rating economies and banks aim for. Earlier this month Standard and Poors downgraded 9 European economies including France in a similar move which heaped yet more pressure on the already struggling European economy. While talks resume in Europe to find a resolution to the Greek debt crisis downgrades of some of the major EU economies could have a damaging effect on the resolution and therefore Euro exchange rates, however this morning Sterling Euro exchange rates have fallen slightly, moving further away from the 16 month high we recently saw. If you are looking for exceptional exchange rates it will be important to stay in close contact with your currency broker who will be able to keep you informed of all the developments in Europe and therefore the currency exchange rates. For example today sees an EU summit where leaders will be discussing growth strategy’s and budget discipline so any comments/announcements coming from this summit could have an impact on the exchange rates.
Meanwhile in the US figures on Friday showed that the US economy was still growing (a stark contrast to the UK) and in fact the growth was better than expected. This means that while the UK is battling recession the US economy appears to be improving which although is good news for the global economy it does mean for those clients looking to purchase US dollars we could see rates of exchange fall further from the current levels. So, if you need to buy US dollars speak to us today on 0800 328 5884 or email firstname.lastname@example.org so we can discuss the best options available to you.