Cyprus Problems and the Impact On Euro Exchange Rates
Over the weekend we have heard that Cyprus requires a €10bn bailout which has been agreed by both the IMF and EU which has sent shock waves through the markets and led to GBP gaining against the Euro. Things in Cyprus do seem very bad as currently the Cyprus parliament is holding an emergency session to discuss the bailout and also a one of levy on all Cypriot bank customers. This levy basically could involve everyone who holds bank deposits with a Cypriot bank being charged a fixed one off fee in order to raise some much needed funds. Today is a bank holiday in Cyprus to prevent a run on the banks but with the panic this news is sure to generate it is likely we will see unrest in Cyprus with protests possible and a run on the banks still likely following the bank holiday as the Cypriot government lose the trust of their people.
While this issue does not bode well for Cyprus the bigger concern is the impact this has on the rest of Europe, if the Cypriot banks can levy their people this quickly and easily then will the likes of Greece and Spain follow suit? Also, this news may hit investor confidence in Europe so for those clients looking to buy Euros may see that rates will push up in their favour, in fact this morning we are seeing rates which are much better than where we were trading last week. The next few days will be critical for the euro situation as if we do see problems with Cyprus and their banks and the talk of this problem spreading to other EU nations then we could see some significant movement in the currency markets.
So, if you need to buy Euros make sure you contact us today so that we can keep you informed of all the latest currency news regarding Cyprus and the knock on effects.
UK House Prices Up
Figures from the property portal Right Move has shown that UK property prices are marginally up from the same period last year although the average price of a property is down compared to February. The housing market does not appear to be making any real headway and despite the figure being positive it is by no means strong enough to show us that we are on the up and that we can expect positive GBP exchange rate movement off the back of it. To help see the UK economy recover and therefore see GBP strengthen we will need to see the housing market grow a lot more vigorously as it can have a big impact on the economy. However, despite the limited effect with all the negative news in Cyprus we can just be thankful that the change albeit it marginal is positive!
If you need to transfer money abroad and you are looking for great exchange rates speak to one of our experienced currency brokers who will be happy to discuss your requirements and all the options available to you. You can call us on 01494 725353 or alternatively you can email me directly on firstname.lastname@example.org.