Portugal weakens the Euro
This morning the Euro has fallen against the Pound as the news from the Portuguese bond market was released. The 10-year bond yield has hit a new high at 15.25%, with investors growing their concerns on a possible contagion. Many analysts believe Portugal will need a second bailout. Meanwhile, the markets expects to hear from Greece’s deal with private-sector creditors soon. GBP/EUR is on a knifes edge as we wait with baited breath to see if Greece is given some respite.
Meanwhile GBP/USD has tested the 1.5700 mark as relatively positive news from the US economy and the bizarre confirmation that US rates will remain at 0.25% until 2014, releases the safe haven funds.
Looking elsewhere there has been some commentary that there is a near-term risk of EUR/CHF breaking 1.2050 and touching the Swiss National Bank’s 1.20 floor. Markets seem overly relaxed about risks stemming from Greece’s debt negotiations.
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.
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