This report will look at the cost of sending money overseas and factors that could affect exchange rates.
- How to save the Euro zone
- Greek Emergency Bailout
- UK Retail Sales Rise
- German President Resigns
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 |
|---|---|---|
| GBP EUR | 3.87% | €9,128 |
| GBP USD | 3.4% | $10,974 |
How to save the Euro zone
Last October European leader announced a 1 trillion euro bailout package had been negotiated in Brussels at the “mother of all summits”.
A large portion of the bailout package will go towards buying up the European banking debt, which has caused lending to stagnate throughout Europe.
This gargantuan bailout could have an aggressive and direct affect on the future of the euro zone and all currency pairing, during the last recession the USD strengthened by over 30% against the GBP in less than 6months as the property market changed forever.
The bailout could cause massive artificial movement between certain currency pairings. In recent years the Euro has made gains of over 14% against the GBP in less than a month.
Unfortunately there is no set date for the funds to be released, if you would like to be kept updated on major market events call today to discuss Foreign Currency Directs FREE “market alert” service.
Greek Emergency Bailout
Today European leaders are meeting to discuss the future of Greece as a further €130 billion euro bailout is needed to keep the flailing economy afloat.
Greece will almost certainly receive the bailout today but there is always an outside chance that Greece will not receive the package and be forced to announce its exit from the Euro zone.
William Hague said “It’s not straightforward to leave the euro. It was built without exits.”
Today’s events could have an unprecedented affect on certain currency pairings and either outcome should instigate buying and selling opportunities today so call your broker to discuss your trading options on 01494725353.
UK Retail Sales Rise
On Friday the ONS announced UK retail sales had risen by 0.9% in January when compared to December. This positive data helped the GBP climbed by over 1% to 1.2057 against the EUR and by over 0.5% against the USD on day but I personally cant see the current sterling strength lasting much longer as underlying problems and recession fears still over shadow any prospect of natural growth in Britain
this year.
Kate Davies, from the Office Of National Statistics (ONS) said “ with unemployment on an upward trend, credit conditions tightening and real incomes still being squeezed, the underlying conditions for consumers are still tough.”
So the Euro could bounce back at any time, all we need to see is a spark of confidence in the future of Europe which may come in the form of a Trillion Euro bailout.
If you have a GBP/EUR currency requirement please call me today to discuss how an expert currency broker can help to maximize potential gains by utilizing a limit order.
German President Resigns
German President Christian Wulff resigned on Friday amid a scandal connected with accepting political favours. During a press conference Mr Wulff said he had “lost the support of the majority of German citizens”.
Mr Wullfs untimely resignation couldn’t have come at a worse time for Angela Merkel who picked Mr Wulf herself. Mrs Merkel is a key figure behind the restructuring of the Euro zone, and any doubts cast over her judgement could slow down progress in Europe.
Market Data:
Tomorrow: (RBA) Reserve Bank of Australia minutes will be announced any change in Australian interest rates. This should have a direct effect on exchange rates if any changes are made.
Wednesday: (BOE) Bank of England minutes. Mervyn King (Governor of the BOE) has hinted that further rounds of quantitative easing may be unavoidable to keep Britain ticking over. The widely anticipated BOE minutes will be announce on Wednesday.
If you have an upcoming currency transfer call me today to discuss how an expert currency broker can help to maximize potential gains by utilizing a limit order on 01494725353.
