- Mervyn King Predicts Growth
- Spain’s Borrowing Costs Ease
- Eurozone Recession Fears
- US Property Growth Continued
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|
Mervyn King Predicts Growth
After a hectic week of UK data releases and mixed messages from leading economist and government officials Mervyn king (Governor of the Bank of England) told the press during yesterdays Governors speech that he is expecting economic growth in the UK this year.
He said a lot depended on resolving the Eurozone crisis, which was hanging over the UK like a “black cloud” but “I think the next quarter will probably be up”
This refreshingly positive outlook has come after the ONS announced UK unemployment figures had fallen by 236,000 people on Wednesday, which is the largest quarterly rise seen for two years.
Despite the positive outlook from the BOE Governor it is my opinion that it is very unlikely we will see GBP strengthening towards the previous four year highs of 1.2860 anytime soon as fresh confidence returns to Eurozone surrounding New European Monetary Fund, discussed in yesterdays report.
Personally I feel the EUR has the potential to bounce back against GBP and would not be surprised to see the GBP/EUR trading at 1.21 in the coming months.
Anyone with a GBP/EUR requirement should be aware that every time the GBP has traded above 1.21 against the EUR in the last 4 years the EUR has alway rebounded a lot faster and more aggressively than anticipated.
If you have an upcoming GBP/EUR requirement call today on 01494 725353 or email firstname.lastname@example.org to discuss your currency requirements.
Spain’s Borrowing Costs Ease
Spain’s borrowing cost have eased to 5.66% down from 6.65% at the previous auction signaling improvement and confidence returning to the failing economy.
During yesterdays bond auction there was almost three times the amount of demand expected and Spain raised 4.8bn euros worth of three and 10-year bonds.
The fall in borrowing costs is a direct result of Mario Draghi’s pledge that the ECB could potentially buy unlimited bonds from debt stricken Eurozone members in order to save the Euro.
I would expect tis positive knock on affect to help strengthen the EUR back towards 1.2350 during tomorrows trading, so if you have GBP/EUR currency please call today on 01494725353.
Eurozone Recession Fears
According to The Markit Flash Eurozone Purchasing Managers’ (PMI) activity among Eurozone companys suffered its steepest contraction since June 2009.
The figures comprised from leading Eurozone companys highlighted service and manufacturing productivity in France was suffering whilst Germany was showing signs of growth.
US Property Growth Continued
According to the National Association of Realtors the US property market is booming and international homeowners now make up for 9% of the total US property market. Sales completed by international buyers have increased by a massive 26% this year alone and many of the international estate agents we work with in Europe have noticed an increase in consumer confidence and feel the property market in struggling economies like Spain and France could start to pick up.