- Spain credit rating cut by S&P to BBB
- Spanish Property Sales Reach Four Year High
- Greece Unemployment Hits A Record High
- IMF’s Christine Lagarde
- GBP – USD + EUR – USD
The table below displays difference you would have received when buying £200,000 at the high or the low over the last 7days.
|Currency Pair||% Change||Difference on £200,000|
Spain credit rating cut by S&P to BBB
Credit ratings agency Standard & Poor’s downgraded Spain’s credit rating yesterday which helped boost Euro confidence whilst highlighting a deepening recession in Spain.Previously Spanish PM Mariano Rajoy has strongly rejected the possibility of Spain accepting a bailout but with Spain losing their credit rating international pressure on Mr Rajoy may force is hand.
Economist are now confident that Spain will have to cut through the red tape and request a full scale financial bailout that will undoubtedly lift financial liquidity and confidence in Spain.
If you have a GBP EUR currency requirement this could have a dramatic effect on your transfer. In recent months the EUR has strengthen from 1.2878 to 1.23 against the GBP and whilst many clients desperately wait and hope for the GBP to bounce back I personally cannot see any factually based data to support this.
I feel it’s far more likely that the GBP EUR will be trading at 1.22 in the upcoming weeks due to the surge in international property sales in Spain.
Spanish Property Sales Reach Four Year High
The Ministry of Development announced last week that Spanish property sales have reached a four year high and there has been a 12% increase in international property sales compared to last year.
If you are planning on buying a property this year please call 01494 725353 or email me at firstname.lastname@example.org for further information on how this may affect you.
Greece Unemployment Hits A Record High
With unemployment rising social unrest in Greece with surely escalate which could have a knock on effect on most major currency pairings.
Political uncertainty is one of the key drivers behind unpredictable currency movement, if you have an upcoming currency requirement please feel free to contact me on 01494 725353
IMF’s Christine Lagarde
Christine Lagarde (Head of The IMF) who was speaking in Tokyo stated that the global crisis that stemmed in Greece has started to affect growth in emerging economies but she also offered hope in the form of European Stability Mechanism.
“Good news is the fact that this European Stability Mechanism (ESM) that had been discussed and in the making for the last months has now been christened,”
If this is the case and unlimited funds become available in the Eurozone it could give Europe the confidence boost needed to stimulate natural growth throughout Europe.
If the ESM fund becomes available I would expect the EUR to bounce back heavily against the GBP and the USD.
GBP USD + EUR USD
The GBP + EUR rose against the USD yesterday for the first this week after the head of the International Monetary Fund (Christine Largardes) announcement yesterday.
Today is particularly busy day for US data releases at:
- 1.30pm USA Producer Price Index
- 2.55pm USA Consumer Sentiment Index
- 7.00pm USA Monthly Budget Statement
Any news released throughout the day that indicate further US strength or weakness will have a knock on affect that may affect your USD currency requirements.