• Feb 21

    Greek Deal Finalised – The Impact on Exchange Rates

    It has finally been announced that Eurozone finance ministers have agreed a €130 billion bailout for Greece, the second bailout the debt laden country has received. In return for this huge amount of money the Greeks have promised to reduce their debt to 120.5% of its Gross Domestic Product (GDP) by 2020 and have also accepted an “enhanced and permanent” EU monitoring presence. The Greeks needed this money before the middle of March when their maturing loans were due, however to many this new bailout seems like the International Monetary Fund (IMF) and the EU are just throwing more money at a problem which may not get any better while in Europe the finance traders are stating that this agreement shows strong protection of member states. Regardless of the long term outcome with the Greek debt issues one thing is likely; Sterling Euro exchange rates will be volatile as the outcome unfolds.

    From the UK’s point of view it is rumoured that Britain will have to contribute around £10 billion of the bailout funds at a time when the country is close to falling into recession many are asking can we afford this? The answer could be no, but we also can’t let them fail as a collapse in the Eurozone could have damaging effects on the UK with Europe our biggest trade partner. So, while this news is mainly positive for the Euro it also could have a positive impact on the Sterling exchange rates.

    If you would like to find out how this news could effect your currency transfer speak to your currency broker today so they can discuss your requriements and the options available to you. Call us today on 0800 328 5884 or email us on info@currencies.co.uk

  • Feb 20

    Greece Decision Due

    We are expecting to hear news from the Eurozone today with regard to the new bailout loan from Greece however as this story has been dragging on for so long now and the concern is that there could be further delays. Should we hear the news today that the agreement is in place and the bailout loan has been resolved then we could see a short term boost to euro exchange rates, however if this decision is delayed once again we could see Sterling gain over the course of the day. As there is so much uncertainty in the markets it is near impossible to predict the outcome of the Euro meeting today and as such clients may want to speak to their currency broker today to discuss their options which could help take the risk out of the markets. The meeting is taking place at 2:30 today.

    While the Greek debt issue will continue to grab the headlines this week there are some other key economic data releases that could effect your currency transfer including on Tuesday the Reserve Bank of Australia meeting minutes are released as are Canadian retail sales while on Wednesday European purchasing managers index (PMI) is due and then possibly most notably this week is the Bank of England minutes. Finally at the end of the week there is another G20 meeting and UK Gross Domestic Product (GDP) which may raise the issue of a UK recession.

    If you are looking for the best exchange rates make sure you speak to us at Foreign Currency Direct plc so we can discuss the currency market outlook and all the options available to you. Call us today on 0800 328 5884 or email info@currencies.co.uk

  • Feb 17

    German President Resigns

    ***Breaking News***

    We have just heard from Germany that their President has resigned. This unexpected news comes as talks with Greece come close to an end and so speculation is rife that this resignation is due to the Greek issue and that some major news is likely to come out of the forthcoming meeting. This news could have major implications on any Euro currency transfer as Germany is Europe’s largest economy and has been propping up much of the Eurozone during these difficult times so any problems in Germany could see negative implications for the rest of the single currency economy.

    Call us today to speak to one of our experienced currency brokers to find out more about this breaking news.

  • Feb 17

    UK Retail Sales

    At 9:30am today UK retail sales are due for release with expectations for a major drop in figures as the UK high street feels the pinch as recession looms. With the retail sales a major part of the UK economy any negative figures here can have a bad effect on Sterling exchange rates and so the current high levels we are experiencing against the Euro and the decent levels against the US dollar could be short lived. So, for any client that is looking to make a money transfer this morning’s data set could be crucial meaning it is worth speaking to one of our experienced currency brokers today on 0800 328 5884 or via email on info@currencies.co.uk

    In Europe Greece is still the word as we have now heard that discussions will continue to today and over the weekend and a possible agreement will be announced on Monday (I am still sure we have heard this before!) which means that we could soon see a boost to Euro confidence and therefore strengthening euro exchange rates. So, if you need to buy euros speak to us before the weekend so we can discuss all the options available to you including a limit order where our systems watch the markets for you and can help clients make the most of any spikes we see. If you would like more information on this and our other contract options please do not hesitate to contact us as we will be happy to help.

  • Feb 16

    UK Unemployment Rises

    Figures yesterday showed that UK unemployment had risen by a further 48,000 people to 2.67 million but despite this news this morning Sterling exchange rates have pushed up with the mid market level breaching the 1.20 level great news for clients looking to buy Euros. The uncertainty in Greece is having a negative impact on euro exchange rates and seems to be outweighing the news that more people in the UK are in unemployment which is only likely to send the UK closer to recession over the coming months.

    Currently in Greece there have been further developments and it appears now that Monday could be a crunch day with a final (we have heard that one before!) decision to be made on receiving the next tranche of bailout funds. While the Greeks protest and divides in the government begin to show the chance of Greece leaving the Eurozone appears to be increasing and therefore euro exchange rates are on the up. If you are looking to transfer money abroad and are looking for the best exchange rates please contact us today so we can discuss all the options available to you. Our freephone number is 0800 328 5884 or email info@currencies.co.uk

  • Feb 15

    Greek Story Continues Putting Euro Under Pressure

    As expected the Greek crisis is still rumbling on as the Euozone chiefs cancelled todays proposed meeting with Greek officials as they demanded more cuts, however as we hear this news a Greek minister has announced that the Greek people have been pushed to the limit by the current austerity measures. To avoid a default and receive the next tranche of bailout funds Greece have been told to make severe cuts which have angered the Greek public leading to major protests in Athens and other major cities. Currently Greece is ruled by a coalition government and as we have seen in the UK a government made up of opposing parties doesnt always run smoothly and in Greece it is no different, while the PM is backing the austerity measures other leading members of the coalition have stated they want to try to re-negotiate the austerity measures. This lack of unity in government and public unrest is making the task of getting Greece out of trouble increasingly difficult. The chance of Greece being able to avoid a default is reducing and the pressure on European finance ministers and therefore Euro exchange rates is increasing. So, if you are looking for the best exchange rates on buying Euros speak to us today so we can explain all the options available to you.

    This morning sees the latest UK unemployment figures announced, the expectation is for a further increase in the people currently out of work which could be more bad news for the UK economy and Sterling exchange rates. The figure is due out at 9:30 this morning. Call us today to discuss your currency requirement on 0800 328 5884 or email info@currencies.co.uk

  • Feb 14

    Moody’s Effect on Sterling Exchange Rates

    This morning we have heard from the credit ratings agency Moody’s who have put the UK, France and Austria all on “negative outlook” which means there is a 30% chance the UK could lose its triple A rating within the next 18 months. This news only goes to confirm what we already knew – the UK economy is under severe pressure and as Ed Balls the shadow chancellor put it; this is a “serious warning.” Any downgrade of an economy can result in increased costs for borrowing funds and a reduction in investors confidence which means money can flood out of a currency therefore weakening it significantly, therefore todays announcement is bad news for Sterling exchange rates. Of course in Europe the news is much the same and so the pressure on finance ministers to resolve not only the Greek debt crisis but also the rising debt levels across the whole economy is more important than ever now.

    If you need to transfer money abroad then it is important to speak to one of our currency brokers today who can explain how this announcement could effect your transfer and the options available to you. Call us today on 0800 328 5884 or email info@currencies.co.uk

  • Feb 13

    Greece Strike as Austerity Measures Passed

    Over the weekend we have seen violent protests in Greece as the Greek parliment passed the necessary austerity measures that will allow them to receive €130 billion in bailout funds. Despite this meaning the debt laden country should now be able to avoid default the public made it very clear that they believe they are now having to sacrifice more than the bailout is worth. The protests illustrate that the public could be in favour of defaulting and leaving the Euro rather than have to put up with the severe austerity measures.

    The measures passed by the Greek coalition government include:

    • 15,000 public sector job cuts
    • A reduction in the minimum wage by 20%
    • Liberalisation of labour laws

    While the country was striking Greek PM Lucaas Papademos was asking for calm and told the country that this package would “set the foundations for the reform and recovery of the economy” only time will tell whether this is correct.

    In the currency markets it is still unclear as to how this announcement will effect the exchange rates, some are suggesting that this could help Greece back onto the road to recovery and therefore will instill confidence in the Eurozone and strengthen the Euro, while others suggest that Greece are in so much trouble that this bailout is just more money to help a lost cause and therefore we are likely to see Sterling strength against the Euro. If you need to make a money transfer or are looking to buy Euros then speak to one of our experienced currency brokers today so they can discuss all the options available to you. In these uncertain times it is important to make as an informed decision as possible and at Foreign Currency Direct we can offer our clients a number of different options we can tailor to suit your specific requirements so call us today on 0800 328 5884 or email info@currencies.co.uk

  • Feb 10

    Greece Agrees Bailout

    Last night Eurozone finance ministers announced that they have made requests for Greece to get €130 billion in bailout funds which is required to prevent Greece defaulting and potentially leaving the Eurozone. Before this is finalised the Greek parliment would have to approve the terms of a number of cuts and other austerity measures with both the International Monetary Fund (IMF) and the European Union (EU). Greece have until Wednesday to find a further €325 million in budget cuts which could mean a reduction in the minimum wage, more job cuts and a reform of pensions all of which has led to 48 hour strike which is due to begin today. It is not unsuprising that following these cuts (which are not the first the country has experienced) that the Greek public is unhappy and these strikes place more pressure on the government and despite the bailout funds likely to prevent Greece from a default their economic crisis is still far from over. So, if you need to buy Euros then speak to one of our currency brokers today so they can discuss the current rates and the market outlook with you in detail and discuss the options available to you.

    In other Euro news we have heard this morning that German inflation is still over target at 2.1% with rising energy prices attributed to the current level. Despite the figures not reaching the target of below 2% it is still an improvement on previous months and is seen as quite good news for the whole EU economy. So, with the Greek debt issue momentarily showing some signs of stability and the German economy showing steady inflation levels confidence may start to return to the single currency economy. 

    If you need to transfer money abroad call us today on 0800 328 5884 or email info@currencies.co.uk

  • Feb 9

    Bank of England Announce More QE

    The Bank of England (BoE) have today announced that they are injecting another £50 billion into the UK economy through further Quantitative Easing (QE)  in an effort to stave off recession in a widely anticipated move. This means that once this latest round of QE is completed the BoE will have injected a total amount of £325 billion since it began in 2009. At the same time the BoE kept interest rates on hold at 0.5% a record low. While QE is usually seen as negative for the countries currency on this occassion there was a momentary spike as it seems the amount of QE had been over estimated, though as we approach the close of business for today Sterling exchange rates are ending on a negative trend. The outlook is gloomy for the UK and the fact they have had to inject more funds into the economy does not help, in fact it could signal that over the coming weeks and maybe even months we could see Sterling weaken against the majority of currencies.

    In the past analysts have stated that QE does help boost growth but its impact is not instantaneous so this move may have come too late to stave off recession which is being so heavily predicted. Should the UK enter recession then we could see Sterling weaken considerably even with the issues in Greece.

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