Data today from Europe showed that the single state’s economy shrank for two continues quarters for the first time in 3 years . Meaning the Eurozone is in a recession once more. Many clients of ours are scratching their heads though as today the euro has strengthened against both sterling and the dollar. The main reason behind this is that other news has been released that have been more surprising including bad news from the UK economy and worries with regards to the US fiscal cliff.
From the UK there we had 2 disappointing announcements, firstly a big fall in UK Retail figures and secondly news that the highly valued AAA credit rating was against at risk. Both of these were expected but the Retail figures were worse than expected and the review of the AAA rating was announced earlier than hoped. So we find ourselves this afternoon in a situation where the GBPEUR rates have fallen by nearly 1½
cents in just 36 hours.
This again highlights how timing a transfer can save you money! Over the last 36 hours if you were buying €200,000 you could have saved £2,000 simply by getting your timing right. Over the next week we have a host of information being released that could easily make that difference again including Greek crunch talks, Fiscal cliff meetings and key bond auctions across Europe. If you are looking for more information about how to time your trade and maximise your exchange we can help. Contact me either at [email protected] or on the normal telephone number.