A largely uneventful day today. Gains were made against the Euro to push the mid-market rate back above 1.35 at the close of trading today.
The reason why there was little movement on the markets was due to American and Canadian public holidays. The USD-EUR currency pairing is the most traded currency pair in the world, so there are normally large secondary effects on other currencies involving Euros. However, with the US banks being closed, the only news governing market movements was the same waiting game for the talks with Greece.
All that was heard today on the news was ‘agreement looking less likely’ on the news stands. I still believe this is politics and has little substance. Both sides will have to compromise as neither can currently afford for Greece to leave. However, the Greek delegation, more than the European Leaders, cannot afford to reach a compromise quickly. They must be seen to be fighting all the way – to prove to the Greek people that they did everything they could. As such this delay is not reflective of a deal unable to be reached, but simply standard worries by politicians about the timing of any inevitable announcement.
As I posted at the end of last week – the uncertainty around the situation in Greece is holding down the value of the Euro, which is actually waiting to come back up. Much better than expected GDP figures for the Eurozone as a whole were released at the end of last week. Not just from the better performers like Germany, Italy noted surprising growth which encouraged global investors. It seems everyone is poised ready to hear the news coming out of Greece. As soon as the news is released, which I’m confident will be an agreement, they will pounce to purchase the Euro, immediately driving up demand and therefore the value of the single currency.
Do not miss out on this opportunity to purchase Euros. The only reason investors haven’t jumped on the Euro already is because they need official announcements to proceed with investing other people’s money, such as pension funds. These rates are thus gift wrapped, and should be taken advantage of ahead of time, particularly when it is hard to judge when the news will break. I believe it will be this weekend so that leaders can control the market fallout (with no banks being open for trading).
I would also encourage those looking to sell Euros to contact me ahead of this announcement. If we are in a position to take advantage of any sudden spike of the rates in your favour before the markets balance out, you could gain back a large amount of the ground you have lost since the start of January.
If you would like to take advantage of these 7 year highs for Sterling Euro exchange rates and want to save money on your currency transfer compared to using your bank then contact me directly for a free quote. Joshua Privett – firstname.lastname@example.org – 01494 725353. I can also peg rates for up to 12 months, should your requirements not be until later in the year, with the UK election on the horizon, this is a popular option.