German president resigns amid favours scandal
The Euro weakened this morning following German President, Christian Wulff's, resignation over a scandal over political favours. In his short statement he said it was impossible for him to continue in a role where he was supposed to be "a moral compass for the nation".
The last thing Chancellor Merkl needs when she is trying to solve the eurozone financial crisis is internal political turmoil such as this - she has already postponed a trip to Rome where she was due to hold talks with...
GBP EUR Rates and UK Unemployment
The markets are bracing themselves for some potentially damaging UK unemployment figures this morning (due out in the next 10 minutes). As a result sterling is currently under pressure and I expect this to continue to be the case as more UK data comes out through the month. The economy is clearly in a bad way given the recent efforts at Quantitative Easing by the Bank of England (a clear admission that the economy will get worse without assistance) and I would imagine retail...
UK inflation figures / GBP/EUR update / Which way next for the single currency
UK inflation figures were released this morning and we saw a
sharp fall in January, down to 3.6% from 4.2% in December. This drop brings CPI (Consumer Price Index) inflation to a 14 month low and whilst the government do expect inflation to continue to fall throughout 2012, the rate remains well above the Bank of England’s 2% target. The release of these figures saw some early morning Sterling strength, as it reached a high of 1.1952 against the Euro. However, this spike was short...
UK outlook changed by credit rating agency – Inflation due this morning!
The UK has had its outlook changed to negative watch rather than stable by Moodys but it
has had little impact for the pound against the single currency, partly due to
the fact France and Austria are suffering the same treatment, and partly due to
the fact we are waiting UK inflation data this morning as well as European
production and ZEW surveys. As such I expect the sterling Euro currency
pair to remain volatile- my gut instinct is a better day for sterling today,
with the Euro fighting back...
Greece / GBP/EUR rates / BOE announcement
Greece – The Never Ending Story
The Euro has seen gains of over half a cent on Sterling
today and can be seen as a clear indicator that the markets are expecting a resolution between Greece and its private creditors sooner rather than later. This agreement should lead to a large proportion (potentially up to 50%) of the country’s debt being wiped off and may ultimately be the key factor in keeping Greece in the Eurozone and part of its single currency.
The markets belief somewhat goes...
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Greek debt issues still making headlines
Greece are in continued talks with it's international lenders over the austerity measures they will have to put in place in order to be granted the next tranche of their international bailout.
The Greek finance minister, Evangelos Venizelos, said that the negotiations were "so tough that as soon as one chapter closes another opens" and with German Chancellor Angela Merkel saying that "time is running out on Greece" and 2 of the largest Greek trade unions gong on strike today things are looking pretty bleak.
This...
Greek debt talks drag on / Which way next for GBP/EUR / Euro strength?
Talks between Greece and its private creditors will resume
today, after an agreement over the country’s debt restructuring failed to reach a conclusion over the weekend. Fear is growing that Athens has not given enough guarantees, that they can implement the more severe austerity measures needed to receive the next 14.5 billion bailout package and ultimately save the country from bankruptcy. Considering the deadline for Greece to pay its next instalment is mid-March, time is fast running out for the country and their involvement in...
Sterling Euro rate above 1.20 again – what will happen next?
GBP/EUR rates continued to fluctuate yesterday and the
battle for supremacy between Sterling and the single currency showed no signs
of relenting. We saw some early Euro strength, bringing levels back down below
1.20, before Sterling battled back in the afternoon and looked to be continuing
that trend this morning with further gains.
Investors are keenly awaiting further economic data from the
UK ,which will indicate whether we are likely to be heading back into
recession. Further negative growth in Q1 of this year will mean the UK is
officially back in...
EU Summit starts the week off for the Euro – Euro Weakness today
This week’s EU summit in Brussels was seen by investors as a key indicator for the growth
prospects within the region, with the focus heavily on Greece and a potential
deal with its private investors. Greek Prime Minister Lucas Papademos tried to
reassure the majority that a deal should be reached by the end of the week but
the truth is, as the second day of the summit draws to a close, we are no
closer to that deal. This has been reflected in the currency markets, as levels
pushed...
