GermanTriple A Threat Weakens The Euro

The under fire Euro took more losses today after it was announced Moody’s were switching the outlook on Germany’s AAA credit rating to negative.  Whilst it doesn’t affect Germany’s actual credit rating at this stage, it is a warning shot across the bows of politicians and financiers if they expect Germany just to continue bankrolling the current Euro debt crisis.

Sterling Euro rates of 1.28 were once again on the market and all eyes are on whether the ECB, IMF and EU can provide a credible solution to this problem and bridge the gap between northern and southern European debt levels.  The problem is likely to rumble on for some time.

However I do worry about UK GDP data tomorrow as I fear it could be a lot worse than expected given sterling’s recent strength against the Euro making it harder for UK exporters as well as the horrendously wet weather costing retailers and insurers.  Personally I would watch out for this data if you do need to buy Euros as it could be a potential banana skin for the pound despite the weakening Euro.  I’m pretty sure the Bank Of England won’t want to see the pound continually hiking against the single currency so at some point they may intervene even if they don’t publicly acknowledge that is what they are doing.

If you want the best rate to buy euros then feel free to e-mail Colm at [email protected] and I would be happy to help.