Greece is once again at the forefront of most peoples minds, but I would not expect this to cause much volatility until early next week. ‘Not much progress’ is how yesterday afternoon’s 7 hour Greek Bailout negotiation meeting was reported to have concluded.
However, the IMF last month offered for Greece to ‘bundle up’ their debt repayments until the end of the month, which is next Tuesday. The reason why the talks are dragging on is because it is in Greece’s interest to make the most of this extra time. Alexis Tsipras, the Greek PM, is simply using the delay to try and negotiate down the debt and avoid reducing pensions, which he claims are currently providing for 3 generations in his country, as a result of widespread unemployment.
So I will not talk about Greece anymore, markets are used to the fanfare of an ‘imminent’ deal or a sudden crisis which could threaten the Eurozone and neither coming to pass.
The key event for those holding Pounds this week is tomorrow afternoon’s speech by Bank of England Governor Mark Carney. Should Carney feel that the Pound is too strong at the moment (which makes our exports extremely unattractive) then these kind of events are an opportunity to reduce the value of the currency by downplaying the current strength of the economy. While little indication has been given about his speech, he certainly won’t be using it to make the Pound stronger, we are still very close to 8-year highs against the Euro.
As such I would encourage those looking to buy Euros to move sooner rather than later. His speech is at 15:45 tomorrow, and it is unlikely to make rates more attractive. With Tuesday looming where some kind of accord with Greece must be reached for both sides to walk away with something, we are in a golden time to be buying Euros. Call into 01494 787 478 and ask for Joshua for a free quote on your transfer and some advice on how to take advantage of these current rates even if your requirements are not until later in the year. [email protected]