The Euro is still fully on the defensive this morning and the ever present debt crisis rumbles on. Italy has found itself embroiled in the thick of things with speculation growing that Europe’s third largest economy is heading ever closer to disaster. The cost of borrowing is rapidly growing across Europe as bond yields widen and this could have disastrous consequences for the Euro down the line. China were being looked upon as the saviour of the Euro, but many feel that China may already have bitten off more than they can chew at present and may already have a great exposure and may not want to add to those positions.
Speculation is growing that Greece is also in further trouble as it is feared that they are nearing default. There was even some talk at the end of last week about Greece looking at a possible exit strategy from the Euro. Many feel this could be beneficial for the Euro as it would be losing what is seen to be one of its weakest economies. However, I have to say that I disagree as any member state that had any option of leaving could well open up the floodgates for others in financial crisis, or those that are writing the blank bailout cheques to also leave and lead towards a collapse of the single currency.
Sterling has had a great benefit from this weakness shown in the Euro and now could be an ideal time whilst we are above 1.1500 to secure Euros. The reason I say this is we are still in a position where the pound is so reliant on Euro weakness to make any headway at the moment. With the constant flow of negative data coming out of the UK it looks likely that Sterling could falter and slip back at anytime so always best to err on the side caution and strike whilst the iron is hot.
FC Exchange are located at:
Salisbury House, Finsbury Circus, Greater London, EC2M 4QQ, United Kingdom
All Rights Reserved: Copyright 2006 - 2017 Compare Money Transfer Limited