GBPEUR exchange rates hit 20 month high
The pound has hit a twenty month high v’s the Euro today following renewed concerns over the health of European Banks. The ECB had funding in place to help banks with liquidity and those plans have come to an end. The Spanish government and banks are unhappy that the funding is no longer in place and this has concerned financial markets.
EU banks have to repay some short terms loans on Wednesday, which is also adding to uncertainty in the markets. The risk of contagion remains high, as it is feared that if we do see any default from a European bank it could affect US and UK banks.