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Mixed messages for EUR

Mixed messages for EUR

Yesterdays data releases followed a pattern, which, has been witnessed numerous times recently. Mixed data in the UK, surprises to the upside in Germany and, renewed worries about the Greek debt situation. This mix of data releases led to swings in the currency markets, which saw the Euro briefly strengthen against Sterling and the USD before retreating due to Sovereign default fears.

In the UK, there was mixed data with the CBI retail survey coming in above expectations, but, net public borrowing coming in significantly below expectations at the highest level ever for April. This figure will be a worry for the Government as it attempts to meet ambitious fiscal retrenchment plans.

Meanwhile, in Greece the head of the opposition party, said he would not support any new austerity plan, believing that increasing taxes would only serve to push the country deeper in to recession. Here, is the problem with the single currency, Greece, desperately needs to devalue its currency in order to export its way to recovery, and print money (forbidden by the Euro Zone) to cover its budget deficit, whilst, the European core needs to raise interest rates to keep inflation in check. In this respect it has still to be proven that a single economic currency can be made to work.

Today saw the breakdown of UK GDP which as expected remained unchanged at 0.5%.

It is a quiet day for Euro zone releases which may mean the single currency struggles to claw back losses. At the present time Sterling is struggling to stay above the 1.15 level against the Euro for the second time this month suggesting that this might be an area of resistance.

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

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