Tag Archives: Greek government
UK Banks Downgraded as Euro Optimism Returns
Friday has witnessed a fairly static day on the markets following an otherwise volatile week. We have seen the uncertainty surrounding Greece subside, as the formation of a pro bailout, co-alition government has brought some much needed confidence back to a sceptical market. The single currency has struggled to make any inroads of late, as the high levels of debt and rising unemployment across the region have only added doubt to the long-term stability of the eurozone.
What is now becoming apparent is that leaders are now trying to provide long-term market confidence by easing fears that Greece, Spain and Italy are for want of a better phrase ‘beyond the point of no return’. It is clear that investors need to be convinced that one, the EU can find the necessary balance between austerity and growth and two, integral countires like Spain and Italy do not find themselves in a position where they default on their debts and ulitmately exit the eurozone. The major fear if this scenario were to materialise is that it will create a domino effect, that may ultimately cause the end of the EU as we know it.
Overnight news filtered out that three major UK banks had been downgraded. This announcement followed fears that further Quantitative Easing in the UK was on the cards, as falling inflation and shrinking growth forecasts were becoming too big a problem to ignore. The need for further QE has only highlighted the on-going exposue we have to the economic problems in Europe and once the news is digested I do feel we will see GBP fall off against the EUR.
If you have an upcoming currency requirement or would like to eb kept up to date with all the latest market movements, then please feel free to contact me directly at mtv@currencies.co.uk or on 01494 787 478.
