Today sees the start of the much anticipated Eurozone summit which is being hyped as the summit where a resolution to the European banking and overall debt crisis will be formed. Already German Chancellor Angela Merkel and French President Francois Hollande have been holding talks because as the two largest and most powerful economies in the EU a lot of expectation and therefore pressure will fall on these two nations. However, Hollande and Merkel’s views on how to manage the debt levels do not necessary align and so it will be interesting how they reach a compromise and come to an agreement. In the lead up to this summit there has been a lot of speculation and Merkel is already trying to play this down saying there is no “magic formula” to solve the current crisis as a result we have seen Euro exchange rates weaken especially against Sterling as confidence wanes as people find it hard to see how a solution can be reached at this summit. Over the next two days we are likely to hear a lot of rumours about the summit and a possible Eurozone debt solution and as a result we could see a lot of volatility for Euro exchange rates. So, to keep in touch with all the latest news make sure you stay in close contact with your currency broker here at Foreign Currency Direct plc.

In the UK we have heard from the Nationwide that house prices have fallen again but this time by 0.6% which is a large drop in an already weak housing market. The building society stated that the poor UK economy and the end of the stamp duty holiday in March was the reason for the drop in prices. The Nationwide stated that they expect to see economic conditions remain challenging over the next year and therefore we could expect to continue to see UK house prices under pressure and as a result Pound Sterling exchange rates may struggle to improve from current levels.

So, if you need to transfer money abroad and are looking to achieve the best possible exchange rates make sure you stay in close contact with your currency broker here at Foreign Currency Direct so we can discuss your currency requirements and all the options available to you. You can call straight through to our dealing floor for free on 0800 328 5884 or email info@currencies.co.uk.