A new four year high was hit on GBP/EUR during Thursday’s trading, as levels touched 1.2769 on the Interbank. This is further proof that the ECB’s decision to cut interest rates has hit the single curreny harder than many anticipated. When you take into account the spiralling Spanish bonds and revelation by Italian leaders that they too will most likely require a finiancial bailout, it is no wonder investors are running for cover as the European debt saga rumbles on.
Euro sellers must be wondering if their luck is ever going to change and whilst it is true that the economic problems in Europe are far outweighing those on our shores, the pound in my opinion is overlued against the single currency because of this and therefore any turnaround in fortunes, however small, could make a big differnce in the markets.
Whilst I don’t believe investors will be fooled by cheap talk, there is an argument to be made that the problems in Europe could scarsely get any worse. The countries who are economically unstable have laid their cards out on the table so to speak and you do wonder whether a long-term fiscal solution is now what is needed, rather than any short-term fix.
Of course this is far from becoming fact and in truth the EUR is losing ground across the board. I do anticipate various spikes in the market, so if you do have euro’s to sell pleas efel fre to get in touch and I will keep you updated with the latest market information.
If you do have a currecny requirement of any variety then please feel fre to contact me directly at firstname.lastname@example.org or on 01494 787 478.