With the uncertainty in the Euro zone political leaders are beginning to focus on domestic prospects over the EU plight. But what could the impact of this be on your currency exchange and how could it effect buy & sell prospects on the Single Currency?
In my personal opinion it is a very easy time to be in political opposition. There is an increasing platform for change as EU problems continue to fuel global headlines and it is giving voters a new found appetite for something different. Hollande is the primary example and the birth of a Socialist President for the first time in 20 years gives this new voice a mandate. But is he alone?
David Cameron has most recently flirted at the idea of securing domestic security over the problems in the Euro zone and all eyes will be on the Prime Ministers speech today for a better idea as to our next step. Whilst Vince Cable has in the past suggested the UK does not have a capacity to affect change in the Euro zone I beg to disagree. With France, Greece, Holland, and also to some extent Ireland becoming increasingly reluctant to fund the ‘something-for-nothing’ bailouts there will be a growing check and balance on the voice of Merkel and the IMF as the best foot forward for the zone.
It seems to me that the saving of the EU is not dependent upon further cutbacks and bailouts but a united front with a revised direction. On the one hand if it continues to be the favored method of correction and Greece do not accept the bailout offer I would not be surprised to see exchange rates on the Euro increase to the 1.26/1.27 mark over the next 2-3 months. If they do however, and Merkel changes her tune, than it is fair to assume rates could drop back down the 1.22/1.23 mark as risk-averse investors flood back to the market. With the uncertain climate and the best buying opportunities for the Euro in just under 4 years make sure you do not get caught out and speak to your currency broker on 0800 328 5884. Likewise if you are not signed up for an account with us, drop me an email on email@example.com and I will be happy to walk you through the process of how we work and can maximise the rate of exchange in your favor.