France And Germany Could Be Heading Towards Recession – EUR Exchange Rates
Suprise figures from Europe have shown that both the French and German economies contracted in the final quarter of 2012 which is worrying for the Eurozone as these are two of the most powerful economies in the EU and should they fall into recession then the whole of the single currency economy will be under more pressure which could weaken Euro exchange rates. The official figures showed that Germany, the Eurozone’s largest economy shrunk by -0.6% which was the deepest contraction since 2009. With France also shrinking by -0.3% there is now a strong possibility that both of these countries could fall into recession at the end of this quarter. Recently the Euro has strengthened against a number of major currencies due to an increase in confidence in the EU so if the two largest EU economies fall into recession that new found confidence could be very quickly erodded. So, if you need to buy Euros keep in close contact with us here at Foreign Currency Direct plc so we can keep you informed of all the latest currency movement.
Japan Still in Recession
Figures from Japan have shown that the Japanese economy has contracted for the third straight quarter confirming the country is still in recession. The economy did only shirnk by -0.1% but most analysts had predicted growth of 0.1% so this was a negative figure and also means bad news for Japanese Yen (JPY) exchange rates. The figures have shown that the lack of growth was down to a drop in exports (which in part can be attributed to a strong Yen) and also lower than usual domestic consumption. While the JPY continues to be strong it does damage exports as it makes them artificially more expensive. If your business needs to buy Japanese Yen then speak to our corporate desk who will be happy to make sure you maximise your currency transfers.
If you have any currency requirements or would like to discuss the options available to you please feel free to contact us at any time as we will be happy to assist. You can call us on 01494 849752