Cyprus Banks Still Closed

It has been announced that Cypriot banks are to remain closed until Thursday and also that there are likely to be restrictions on people being able to take money out of their accounts. This is all due to a bank levy which will see anyone with €100,000 or more held in a Cypriot bank charged a fixed percentage which could be as high as 30%. In the meantime Cypriot banks are being restructured with a “good bank” being formed and Laiki bank being shut down. Unsurprisingly this has caused major public unrest and has also led to a huge loss of confidence for the Eurozone and therefore the Euro and as a result we have seen GBP EUR exchange rates push up to some of the higher levels we have seen for some time meaning there are some excellent opportunities for any clients looking to buy Euros. I believe that there is still some way to run with the situation in Cyprus and if the Greek saga is anything to go by Cyprus could be in the headlines for months to come. While this all carries on I would expect to see the EUR remain volatile but should we get some certainty on the situation then it may lead to some Euro strength and anyone who needs to buy Euros and is waiting to see if the rates are going to continue to go up should be aware of the possibility of the Euro correcting back down very quickly if there is any positive news from cyprus.

So, if you need to buy Euros then make sure you speak with one of our experienced currency brokers who will be happy to discuss your requirements and all the options available to you which include a forward contract where, for a small deposit, you can secure your exchange rate at today’s level for a period in the future, perfect to help clients budget and take some of the risk out of the market.

USD Outlook

Today we have a raft of data due for release in America which could impact on the USD. Starting at 12:30pm we have Durable goods orders which will give an insight into the current strength of the manufacturing sector, later on we have consumer confidence figures, new home sales and the Fed manufacturing index. All of these data releases will give us an insight into the performance of the US economy and as a result could mean we see a lot of movement today for GBP USD exchange rates. So, if you need to buy or sell Dollars make sure you speak with us today so we can keep you informed of all the latest Dollar news.

If you would like to speak with one of our expert currency brokers to discuss your currency requirements call us today on 01494 849752 or alternatively email me on