The uncertainty surrounding the issues with Greece keep coming as the Syriza party gained more popularity recently.
The party is itself anti EU & anti IMF bailout so if they get into power when elections are held on January 25th expect the Euro to experience a huge amount of weakness.
Indeed, if the Greeks do have a change in government this could open the flood gates for other countries which have been bailed out to turn their back on previous financial agreements.
One of the reasons why the Euro as a currency was brought about was to break down trade barriers and encourage countries to get along with Europe. However, if the Greeks decide to go back on their original agreement then expect uncertainty for the single currency.
The next ECB policy meeting will be on 22 January and with ECB President Mario Draghi suggesting that the ECB could introduce Quantitative Easing this led to the Euro falling against Sterling. With inflation on the continent so low it is only a matter of time before the ECB takes action.
EURUSD rates are the lowest since 2010 and I think we could see GBPEUR rates go higher during this month.
If you have a currency requirement to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian [email protected]