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Is this time to look at selling Euros? Will the Euro survive? Shall I sell My Euros? These are all questions I am now being asked on a daily basis… Here is my personal take on things
Yet another week goes by and once again Euro news has been in the headlines… Yes for sure there is just so much trouble within Europe and without a doubt 2012 will see some changes that have never been seen before but I cannot see that even if there is a decision to dissolve the Euro it will be done at a great pace.
When a country has moved to join the Euro in the past, it takes months and years for the powers that be to track exchange rates between the two currencies and to decide on a correct and fair level to peg the currencies at, this is why we always know well in advance that a country is going to join, yet have no idea what the pegged level will be.
In my opinion this matter alone will keep a potential break up from happening for a long time as ministers and members within Europe will not be able to just decide on exchange rates for Germany, Greece, Italy and so on overnight, it will take a huge amount of work and a lot of arguments to come up with a result that is fair for all.
Regarding selling Euros, if you are currently holding funds in Euros then I would start to become very tempted to look at converting your money back into whichever currency you will eventually need them in. There is indeed no smoke without fire, I am aware that the Euro has indeeed been on the ropes for the last few years now and managed to stay on its feet, however on pretty much a daily basis something new is in the papers, another summit is announced to find a solution to the problems or more money is injected into particular economies or funds to keep things afloat.
Sterling Euros rates have been stuck in the same range of 1.1550 to 1.1770 for the past few weeks and I believe investors are sitting back awaiting the next piece of large news – more than likely although the U.K has plenty of problems this will be something negative for the Euto that tips the balance slightly… Of course anything can happen so I may be wrong, but I feel the Euro at the moment is a ticking timebomb and everything could hit the fan at any moment over the next few months.
If you are worried about what to do I can assist you, not only by getting you the best rate of exchange when you convert your Euros but with a number of tools we have available in the market inclusive of Forward contracts (locking in to a rate of exchange for anything up to two years in advance – ideal for pending property sales and businesses) stop loss and limit orders, tools allowing you to aim at a particular rate or set a worst case scenario rate with these automatic triggers that work 24 hours a day 7 days a week at no extra cost to you.
Should you want a further explanation on how these work, or indeed want to discuss a potential transfer for you or your company (bank to bank transfers only) then do feel free to contact me, the owner and main writer on this site - Daniel Wright on djw@currencies.co.uk and I shall be more than happy to assist you with whatever your requirements are.
What has happened to the Swiss Franc? What does this mean for the future? How does it work? Shall I pay off my Swiss Franc mortgage? Minimum level against the Euro – Australian GDP better than expected too…
Yesterday saw the largest movement for the Swiss Franc in its history as the Swiss National Bank decided to set a minimal level for the Franc against the Euro. Within ten minutes the CHF weakened by roughly 8% against everything as CHF was sold off rapidly by the SNB to get from 1.10 to 1.20 against the Euro, also against the Pound we saw similar movements as GBP-CHF went to 1.38 from 1.25!
Lets see what has actually happened here and what effect this may have gonig forward not just for EUR and CHF but for many other currencies too….
The Swiss are in effect saying they will buy unlimited quantities of of currency in order to keep the EUR-CHF rate at a minimum level of 1.20, personally if I had an investment in Swiss Francs and at some point I had to bring it back into Euros then why hold on now, I would sell it straight away as by all accounts the SNB say it will never get any better than this to sell…. This may lead to a large sell off of CHF in the coming weeks and months which may weaken the Swiss Franc and lead to investors looking for other places to store their funds.
On the other hand justhow much money have the SNB got to combat this??!! By decreasing the value in Swiss Francs it will increase demand, and many investors will no doubt see this as a buying opportunity which may mean that the SNB face an ongoing battle against investor appetite, the longer this goes on the more they have to draw on and do they really have a bottomless pit of money?? I don’t think so!
Yesterday saw the Pound lose ground against most majors following this, we slipped below the 1.60 mark against the Dollar as investors turned to gold (priced in Dollars) and also the Euro and antipdean currencies gained as it appears Sterling is still nowhere near the currency of choice.
Last night saw Australian GDP figures released and they came out 1% growth for their economy, much better than the 1% expected and leading to a good bit of AUD strength….. This goes to show Australiais still boxing on well in the global economic nightmare compared to the U.K showing a rather dismal 0.2%. Be aware this may lead to the AUD being fairly solid again in the near term so those of you with transactions to make may wish to think fast.
If you have a Swiss Franc mortgage, you are emigrating to Australia, you have business transactions to send overseas or any general need to transfer anything from £1000 to multi millions from one bank account to another involving a currency exchange then contact me directly djw@currencies.co.uk or by calling me during U.K office hours on +44 (0) 1494 787 462 and I will be happy to help you get the best rate along with a great level of customer service.
I look forward to hearing from you and heres to another busy day on the markets! 
