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What can we now look out for and expect on Euro Exchange Rates?
The Euro lately has been an exceptionally difficult beast to predict but I will as ever strive to make you aware of what is important. The wave of enthusiasm Draghi unleashed on the markets has now passed and once again the devil is in the detail, or in this instance perhaps the lack of it. Are we really any clearer about what is going to be done in Europe? Quite frankly no, we are not. We need to have faith that the major actors in this play have the best interest of the global economy at heart because the deteriorating nature of this crisis is affecting everyone. Considering how advanced the human race likes to think of itself, the worrying course this crisis is plotting out is a major undermining of our own intellect. Will future generations look back at us with scorn and disgust in a similar way we look back at medical sciences of the 18th and 19th Century? It may well be worse that that…
Angela Merkel and Francois Hollande meet this week Thursday, whilst The Greek Prime Minister Antonis Samaras heads to Germany at the end of the week. It is likely some kind of extension of debt payments or softening of austerity will be pushed for by the Greeks. Germany are bound to remain adamant no ground will be given and this could reignite fears of a Greek exit.
‘The problems in Europe will not be solved quickly and are likely to get worse before they get better’
Reports yesterday Germany may agree a cap on bond yields spreads versus German bunds were denied by Germany yesterday. A future event I am highlighting to clients uncertain about which way things will turn is the German Constituional Court ruling next month, which will rule on whether it is legal or not for taxpayers money to contriubute to bailout funds. I expect that they will rule that it is legal, or if they rule it is not, then another way of filtering money from North to South will be found.
Looking further ahead I think therefore the Euro will continue to struggle but I do not personally think Greece will leave. Such an outcome as I have previously stated would possibly be the downfall of the Euro. I do believe something will be done. I believe Germany will be forced to act. But that in order for this to happen, there will be more turmoil and uncertainty on the market. The problems in Europe will not be solved quickly and are likely to get worse before they get better.
I therefore believe that if you are selling the Euro, you are currently looking at an excellent opportunity that may not last. The longer term outlook still remains very uncertain and investors are bound to turn attention back to the crisis soon. As painful a pill as it is to swallow when rates are compared to those of last year, many investors are selling their Euros now because the longer term projection is further instability.
Closer to home for anyone interested in the pound, we have UK GDP, the second estimate of Q2 due on Friday which could provide some volatility. And this morning there is a Spanish debt auction, which may attract some interest and could move exchange rates. The UK is clearly suffering but there is still an impression that the pound is a better investment than the Euro since the UK is at least attempting to deal with its debt problems.
Being aware of events on the exchange rate and an understanding of what drives the market is key to maximising your transfer. If would like information on how I can personally assist you with this task please read on.
My name is Jonathan Watson and I am Senior Currency Dealer at one of the UK’s leading foreign exchange specialists. I have a genuine and passionate interest in the Euro and the currency markets and saving people money! I have never had too much trouble making sure that anyone who contacts me directly through this site gets the very best deal, much better than their current bank or broker. One email to me could save you thousands of pounds…
Please feel free to make direct contact with me Jonathan Watson on [email protected] or call 01494 787 478.
I look forward to hearing from you and assisting you with the best deal
2012-08-21 03:50:00
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