Euro Continues to Strengthen
Yesterday we saw the EUR continue to strengthen against Sterling as we fell yet further away from the highs we recenly witnessed. This was in part due to the news that Spain, one of the largest economies within the Eurozone had officially exited recession with growth of 0.1%. Recession is officially defined as two consecutive quarters of negative growth and Spain had been in recession for over two years as it was hit hard by the global slowdown with its banking sector and housing markets two of the worst effected areas of their economy. As many of our affiliates in Spain have confirmed the housing market in Spain was hit very hard with many housing projects stopped halfway through completion or even in some cases fully built housing developments left completely empty as the previous vast number of Brits buying in Spain slowed down considerably. The severe reduction of property sales in Spain damaged the economy and led to a lot of unemployment, significantly less money moving through the system and as a result economic slow down and recession. As mentioned, this coupled with a sturggling banking sector meant that Spain was one of the worst effected economies in Europe.
So, the news that Spain is now out of recession, despite very minimal growth, is excellent news for the Euro. Having been close to the 1.20 levels only a few weeks ago those exchange rates now seem like a long time ago as the rates are now moving closer to 1.15 and below. This is of course good news for those clients looking to sell Euros but for the many clients looking to buy Euros it seems like, for the short term at least, the very high levels we recently saw are gone. So, the question is now when will be a good time to buy Euros? With Europe gaining support thanks to the recent news from Spain it seems like we may see rates hold a little lower for the time being, however next week sees the start of another new month which will bring with it a whole raft of economic data which should give us more of an insight into the movements for GBP and EUR.
So, if you need to send money abroad and would like to discuss all the different options available to you please contact us today. You can call us for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively you can email me directly on email@example.com