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European meeting, Europe is not out yet, currency exchange be wary!
European meeting takes place today, the first all year when the market is not getting worse but better. The main topics of conversation is Spain again and their future. As many regular readers will know the Euro has strengthened recently due to the news of a possible unlimited bond buy, the aim of this will be to lower the costs of borrowing for the struggling nations and as a result make it a lot less likely that a bailout will be needed. Breaking this down, the European Central Bank has confirmed its possible, Germany have voted on Thursday to say that it is not illegal, however nothing has happen yet. It can only happen once Spain asks for a bailout, so at the moment it is all just SPECULATION – meaning it could easily come to nothing and the rates climb back as a result. Please don’t think that what has been talked about in the press actually means that Europe is out of trouble yet.
So, will Spain ask for a bailout?
This is next questions on everyone’s mind and will lead to more volatile trading sessions in the weeks ahead, I am sure of that. The facts being that the Spanish prime minister Mariano Rajoy fears asking for financial support will have huge political backlash at home, but he may eventually have no other choice. AGAIN the future of Europe is being decided by politicians that are potentially more wary about their own future rather than the country they are representing!!!
So what to do if you need to complete an exchange?
Either way measure your exposure and make sure you are not risking more than you can lose. If I was buying euros at the moment I would be very wary as I think it will go down further before any real sign of a return to strength. So if I was a buyer I would be considering buying now. Sellers, well you are in a position of power at last, I would personally ride with caution. I can see rates potentially improving for Euro sellers by another 2 cents in the next week, making a difference of £1,200 for every €100,000 sold back!
If you are looking at trading or want more information, contact us today. We are a pro-active service helping you save money. Simply put if we could not help, we would not be in business. Contact me directly today by email at [email protected] or call the normal number asking for me Steve Eakins.
Thank you,
Steve Eakins
2012-09-14 14:00:34
Source: http://www.poundsterlingforecast.com/2012/09/14/european-meeting-europe-is-not-out-yet-currency/
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