Spanish Double-Dip Recession a Boost for the Pound
Spain officially slipped back into recession yesterday as their most recent set of GDP figures announced that their economy had contracted by 0.3% in the first quarter of 2012.
In addition to this Spanish retail sales fell by 13% and unemployment hit a staggering 24.4%.
Spain's second period of recession is the latest significant headache for the Eurozone following the PIIGS needing financial assistance throughout most of 2011 and Greece's repeated bailout packages in the latter part of 2011 into 2012.
Unfortunately it doesn’t seem to be...
The Slide of the Single Currency
As the week draws to a close the markets are left to reflect
on what has been described by many as the beginning of the end for the Eurozone
and its single currency. As financial Armageddon bears down on the Spanish
economy and investors run for cover, I have to ask myself which twist this
Greek tragedy will take next. In fact, it is now probably better described as
the sinking of the Spanish armada and any default by Spain would not only cripple
the country’s economy but ensure contagion...
Good GBP Euro Exchange Rate Despite Recession In UK
Despite the UK being officially back in recession this week, sterling euro rates are still the highest we have seen since 2010 (and close to levels last seen in 2008). Whilst the pound did drop very sharply on Wednesday following the ONS announcement that the UK is back in recession and the worst was feared for the short term future of the pound, it has since rallied back due to a combination of factors.
Firstly the original expectation was that the UK would avoid recession...
UK in recession…..a reaction?
After the initial shock following yesterday’s announcement from the Office of National Statistics that the UK is officially back in recession, where we saw the Pound quickly lose around 0.5% against most major currencies, Sterling seems to have recovered quite pretty well starting the day only half a cent away from the recent 20 month high against the Euro and just touching 1.62 ( a 6 month high) against the US Dollar.
In my mind the reason for the Pounds continued strength could be one...
GBPEUR at 20 month high
The Pound hit a 20 month high against the Euro yesterday following the Bank of England's minutes which suggested that the likelihood of further Quantitative Easing being used to stimulate economic growth in the UK is diminishing.
This, combined with an unexpected drop in unemployment numbers led to the Pound spiking to within a cent of the highest levels seen since the Summer of 2010 (now doesn’t that seem like a lifetime ago!!).
At times like this human nature often gets the better of us and...
1.22 on the markets!!!
GBP/EUR levels have today pushed through the 1.22 barrier, which up until now had provided huge market resistance. We are currently trading near the dizzy heights of a 20 month high, with the Interbank rate touching 1.2233 at its highest point today. This seemed be triggered after this morning’s UK unemployment figures were released and came in better than expected (unemployment fell by 35,000 to 8.3%). This represents the lowest figure since the summer of 2011 and provide further evidence that the UK is...
Buying Euros At 1.21?
If you are looking to buy Euros at 1.21 then the last 2 days have provided the perfect buying opportunity with many trades going through at 1.21 (dependant on volume). Higher then expected UK inflation figures and the continued problems in Spain have meant the pound has remained relatively robust whereas the Euro has been under increasing pressure. Current levels represent the best buying levels in nearly 20 months and have only been about 1.5 cents higher since 2008!
Whilst I cannot see the situation...
GBPEURO.. Which way will it go?!
The GBPEUR exchange rate is knocking on the door of the best levels we have seen all year for anyone buying Euros and in my opinion well worth taking advantage of.
You see the problem with the pound over the last few years is confidence. With much of the UK's industry and manufacturing having been moved offshore, the last decades growth was fuelled by global demand for UK services. Banking and Insurance were the real big hitters and with these areas still licking their wounds,...
Where next for GBP/EUR rates / Greek debt swap deal reaches pivotal point /...
GBP/EUR rates have been hovering just below 1.20, as markets wait for confirmation that Thursday’s deadline for the Greek debt swap with its private creditors will be met without any further surprises. This debt swap will enable Greece to immediately wipe over 100 billion Euros off its national debt and is essential if the country realistically wants to remain part of the eurozone and its single currency. If this deal goes through we could well see some initial Euro strength, although I do not...
EUR Recovery / GBP/EUR Forecast / Greek Solution?
Monday has seen some positive movement for GBP/EUR, although
not enough to erode the recent declines against the single currency. Levels have pushed back up to a high of 1.1844, after starting the day at 1.1780.
Markets had reacted positively to news that the Greek bailout package had finally been agreed and subsequently we saw the Euro gainover two cents against Sterling, with the single currency trading at its highest level since November of last year.
Whether this was a false dawn or not only time will...
