Home > Resource Hub > Daily Market News > The Euro is easing against GBP and USD

The Euro is easing against GBP and USD

The Euro is easing against GBP and USD

The European leaders meet yet again today to try and agree on the new fiscal compact agreement and to set up the new €500 billion European Support Mechanism. We’ll no doubt see European leaders insisting on further commitments from the Greek government in exchange for a another bailout package. Rumours over the weekend suggest that delegates had been pushing to put an EU official in charge of Greek fiscal policy with full veto powers over the government’s spending decisions. This of course has brought tensions between Athens and the other member officials to new highs and further progress in this area will almost certainly lead to private sector investors taking a loss on any Greek debt they hold.

Reports suggest a haircut of 60% is close to being agreed. Progress on the Greece matter should ease pressure on other periphery nations in a week that sees Italy, Belgium and Spain sell €22 billion of debt securities. Italy is due to auction €6 billion of 5- and 10-year debt today and will be hoping that it can sell 10-yer debt at yields around 6%.

With so many summit disappointments in recent months, markets are watching events in Europe nervously, which is why stocks were falling in early trading. All this has hit the Euro overnight, taking it from its high of $1.3235 to levels around the $1.3150. The euro has also eased lower against sterling this morning, but GBP gains have been limited as the latest Hometrack survey showed UK property prices stagnating in January.

The end-of-month EU Commission surveys are expected to show a further improvement in business conditions throughout the Euro Zone in January, which would be consistent with the view that any recession experienced will be much shallower than that seen in 2008-2009.

Data from the US came through a little weaker on Friday but we have seen little movement GBP-USD.

All in all a reasonably quiet looking week ahead with just the PMI numbers from the UK and Europe and the US nonfarm pay roll figures on Friday.

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.

Do you want to earn some extra money? Then you can profit from our affiliate program by referring a company or friend that may benefit from our services and earn a commission in return.

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

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.