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EUR at lowest level vs GBP for 4 months

EUR at lowest level vs GBP for 4 months

Rumours have surfaced overnight that Italy has asked China to buy Italian debt. The news has boosted stocks and the Euro, as risk sentiment improved on the back of the news. However, the article in the Wall Street Journal stated that Italy was ‘hoping’ China would buy ‘large amounts’ of Italian debt, and does not state if the Chinese will actually buy Italian bonds.

If the Chinese do enter the market to buy Italian bonds then this may lead to some short term confidence in the markets. However, the underlying problem is still going to be there – that the Euro, in its current form, is simply not working.

This morning has seen Angela Merkel come out defending the Euro and stating that the collapse of the single currency would unleash a domino effect. She also added that Germany was ‘absolutely committed’ towards the Euro, and acknowledged that Germany had benefited hugely from the single currency. The problem is that the European Financial Stability Fund, which has been the cure to the peripheries problems, is increasingly being seen as a temporary fix. Until significant decisions are taken, the Euro is likely to remain under pressure.

UK economic growth was dealt a blow yesterday when the Organisation for Economic Co-operation and Development released figures showing that activity in the UK had fallen. These levels were last seen when the UK entered for recession and it is the fastest they have fallen since June 2010. The slowdown in the UK is also being witnessed by the other six leading industrialised nations.

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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