New EU Compromise Deal Could Impact Currency Rates Today
EU leaders are currently meeting to discuss a framework which includes a cap on the budget and, if David Cameron gets his way further spending cuts. The way that the EU meeting is run means that if any of the leaders does not agree with the proposal they are able to veto it meaning it could fail before it has even started. Yesterday Cameron stated that he would not accept a deal unless further cuts were made and considering he has vetoed a EU proposal before causing unrest between the UK and the rest of Europe. The news overnight from Brussels is that the agreement is getting closer so the markets will all be awaiting any further news. Should an agreement be reached we could see further confidence return to the Eurozone and therefore the EUR which could bring more Euro strength, however I think we would see more currency movement should Cameron veto the agreement. So, if you need to send money abroad make sure you keep in touch with our knowledgeable currency brokers here at Foreign Currency Direct plc so they can keep you informed of any developments.
Anglo Irish Gets Debt Deal
The European Central Bank (ECB) has passed a deal to liquidate the former Anglo Irish Bank which means that Ireland can now defer its bank bailout debt payment for decades. Anglo Irish was nationalised in 2009 and is now called IBRC and the fact that the Irish Government can defer their payments on this original bailout deal is very good news as it takes a huge amount of pressure of the debt laden country. Ireland were heavily affected by the recession especially when their housing market bubble burst and many people lost huge amounts of money. The original deal was set to cost Irish tax payers €3.1bn each year for the next 10 years with the next payment due in March although this has now been deferred and the interest rate has also been reduced from 8% to 3% which means that while the pressure has been removed the Irish Government will also save a significant amount of money which is yet more positive news for the Eurozone.
HMV To Close 66 Stores
It has been announced that HMV’s administrators will close 66 stores across the UK, the majority being in the UK. The stores earmarked for closure employ over 900 people while close to 200 jobs have been lost at HMV’s head office and distribution network. News like this just goes to show how badly affected the UK high street is due to the double dip and potentially soon to be triple dip recession and with more people losing their jobs, more big names like HMV and Jessops going under could soon start to leave UK high streets up and down the country looking like ghost towns! Negative news like this can have a bad impact on Sterling exchange rates and further companies going into administration or negative retail sales figures could lead to GBP falling further.
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