GBP EUR Rate drops below 1.20

GBP/EUR has moved back under 1.20 after the short spike we
saw above this level, following Friday’s better than expected retail figures.
The Eurozone and it’s single currency is still in a precarious position however
and with Greece back under the spotlight more volatility is likely in the
coming months. The next deadline for Greece is only 2 months away, by which
point private creditors must agree to the 50% ‘write off’ sanctioned by
European leaders at the end of last year. If this fails to materialise Greece
will more than likely not received a second bailout from the European Central
Bank (ECB) and face the real prospect of exiting the Eurozone and it’s single
currency.

Those holding out for a return towards 1.10 on the back of
continued unrest in Europe  may well be disappointed and the fact that we
are still trading close to a 19 month high could be viewed as excellent buying
opportunities in an increasingly unpredictable market. Data releases and growth
forecasts in the UK continue to be poor and I believe in the short term we
could see levels move down between 1.15-1.17 before they improve.

Should you wish to get the best exchange rates for your currency transfer then feel free to contact me directly [email protected] quoting GBPEUR as your subject header and I shall be more than happy to help you.