The Cypriot Finance Department have raised the limit of Euros that you can withdraw from the Island – from €20,000 to €50,000
When to BUY Euros??
The world is still waiting for a solid decision from the Eurozone Finance Ministers, as Greece is still very much at the forefront of investors minds. We seem to be edging closer and closer to an update / outcome, with the most expected decision probably an extension to the current loan repayment date. Greece are due to repay a vast figure on 28th February so time is very definitely running out! I personally feel that the key Eurozone members (including Angela Merkel of Germany) wish to keep the entire single currency intact. The fallout from a Greek exit from the single currency could be catastrophic, meaning a potential return to their former currency ‘The Drachma’. This could cause a huge recession and potentially bankrupt the country – a grave prospect!
If you have Euros to buy, I would be inclined to take advantage whilst the levels are at ‘there or there abouts’ 7 year highs. Brussels look to meet tomorrow evening to discuss the extension, so markets may move during the weekend, or out of standard trading hours. During yesterdays trading we saw markets touch 1.36, not seen since pre Financial crash in 2007. The Eurozone Central Bank release their Monetary Policy Statement today, their first since the introduction of Quantitative Easing. This may assist Euro Buyers achieve their last hurrah prior to markets correcting. I personally feel that up to two Cents of the GBP EUR rate is Greek uncertainty, potentially dropping an exchange rate of 1.35 down to 1.33.
USD Exchange Rate Forecast
The US Federal Reserve last night cooled expectations of an imminent interest rate hike, buy indicating in their minutes that a hike was ‘unlikely’. The US Economy has gone from strength to strength over the last 6 months, with the Greenback taking a good influx of funds from global uncertainty. I don’t think that it will be too long before markets push 1.50 again, so USD buyers may wish to take advantage of these favourable levels.
AUD pushing 2.0
Once again GBP – AUD is closing in on the 2.0 levels, as again we are in the 1.99s. The AUD gained strength from the Interest Rate minutes released on Monday, giving Australian Dollar sellers a window to take advantage of. If you do have Australian Dollars to buy, feel free to get in touch to be ready to take advantage of rates hitting 2.0!
If you do have an exchange requirement, however big or small feel free to get in touch. We are able to assist you with timing your exchange at potentially favourable times, plus assist with setting up currency equivalents of ‘safety nets’ etc.
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