Yesterday we were heard that Cyprus has informed the European authorities that they intend to apply for a bailout due to their massive exposure to the Greek debt crisis. Cyprus are now the fifth European country to request a bailout following Ireland, Portugal, Italy and Greece. This is just more bad news for Europe where it seems that no one can escape the economic pressure of the debt crisis and only goes to further weaken confidence in the single currency economy. This week we are expecting to see a Eurozone summit which is aimed at shoring up the Euro, it seems quite a lot of expectations are being placed on the summit and the fact they are expected to find a solution to the issues means if they do not (or the markets believe that they have not) then we could see further Euro weakness. All of this comes at a time when one of the largest countries in Europe, Spain have requested a bailout for its banking sector of around €100bn. There is so much happening in Europe at the moment that the outlook on Sterling Euro exchange rates changes almost on a daily basis. So, to ensure you are kept up to speed with all the latest news and currency movement speak to one of our experienced currency brokers today.
This morning we see a speech from Bank of England Governor Mervyn King at the same time they announce the latest inflation data and public net borrowing figures. It will be interesting to hear what King has to say about the economy and especially the UK’s exposure to European debt. Currently the UK economy is in a challenging position but while the problems in Europe persist the UK’s problems may be kept out of the headlines for a little bit longer which could help Sterling exchange rates, however my view is that our close trade ties to Europe mean it will be some time before we can start to talk about recovery. Will King agree and continue to talk the Pound down or will he have a more positive outlook on the economy… we will find out this morning.
If you need to send money abroad and are looking to get the best possible exchange rates make sure you speak to one of our experienced currency brokers today who will be happy to discuss your currency requirements and all the options available to you. You can call straight through to the trading floor for free on 0800 328 5884 or email me on firstname.lastname@example.org.