Let’s Party Like It’s 2008
Good morning and welcome to 2015. I trust you all had an enjoyable New Year’s Eve and we wish you a happy and healthy new year.
We are starting the year with some good news if you buy Euros and some not so good news if you are a seller. The Euro moved to a 4 ½ year low against the US Dollar as much better US GDP revision boosted the US Dollar. Coupled with worries from Mario Draghi about the state of the Eurozone and what will need to be done to counter inflation, this has left the Euro in a bit of a sorry state. Draghi warned about the heightened risk of the ECB failing to deliver on its mandate of price stability.
As the markets warm to the probability of QE (it’s 2015, I can mention it again) and add this to fears over the current Greek political crisis, the Euro has hit lows against the Pound we have not seen since 2008. So, for all Euro buyers, this could be a great way to start the new year.