Following the 38th G8 summit over the weekend it was concluded that emphasis will now be placed on economic growth and job creation to rectify the ongoung problems in the Euro zone. If the austerity measures can be replaced with new policies favorable to economic stimulus then it could be refreshing to the course of the Euro. It has already been welcomed by the market with stabillity found around the 1.23 mark since the end of the summit on Saturday.
It will be interesting to see how policies reflect this new direction in the coming weeks and investors round the globe will certainly be keeping a closer eye on the key performance indicators of European economies. Whilst Greece has quickly become the eye-of-the-storm throughout the world and G8 leaders have provided guidance as a best foot forward it is easy to forget that the decision is still their own.
Whilst many may wait until after the elections in Greece before returning to the market it could already be too late to take advantage of the near 4-year highs we saw on the Euro last week. At the time of writing Sterling-Euro rates have slipped down to 1.23 and is most likely a result of the new call of action for the Single Currency. Make sure you sign up for a free no cost/ no obligation trading facillity with us here at Foreign Currency Direct or speak to your broker on 0800 32 5884 and familiarise yourself with a forward contract, limit and/or stop orders and mitigate the uncertainty surrounding the economy.