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A new hope for the Euro zone

A new hope for the Euro zone

Chancellor Angela Merkel’s spokesman has warned markets to lower expectations for a “miracle cure” to the Euro zones crisis. This came on Monday – one day after the statement from the meeting with Sarkozy and Merkel, where they promised a comprehensive new package for the Euro zone. The problem is that the Euro zone requires a miracle cure to enable the single currency to work. However, markets remained buoyed yesterday by the hope that a definitive solution is near.

These hopes were given some further credibility on Monday, with the announcement that the European Union has postponed a meeting until the 23rd October, to allow time for a broader solution to be found to the crisis. Part of this broader solution could be in the form of increased losses for the Private sector. Greek finance minister, Veinzelios, yesterday hinted at “PSI Plus”, where PSI stands for Private Sector Involvement. The chairman of the Euro zone finance ministers, Mr Junker, also refused to rule out a 50-60% hair cut on Greek debt. However, Mr Junker also stated the risk this would create for contagion to other euro zone countries as markets withdraw funding.

There is also a feeling of a wider global effort to shore up markets, with the Chinese sovereign wealth fund buying shares in all four of China’s large banks. This marks the authority’s first support for the stock market since 2008. Japan also announced that it would be entering in to consultation with the US over the purchase of further Euro zone bonds.

Today, we will receive an insight in to the state of the UK economy in Q3 with the NISER GDP estimate. With the British Chamber of Commerce expecting a reading of 0.1% to 0.3%, expect any reading below this to lead to Stirling weakness.

What does this all mean for me? Well buying your EUR, USD, AUD or any other currency at the wrong time could cost you a fortune. There is no crystal ball but Currency UK can give you the information you need to make an informed decision.

Currency UK will then offer you the best exchange rates available and ensure that you subsequent international transfers are handled as quickly and as efficiently as possible.

Contact us now on +44 (0)20 7738 0777 or click here.

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