Friday, 21 August 2015

Why has Pound/Euro fallen into €1.38's?

Friday 21st August 2015
Since my last post on Tuesday, Sterling/Euro rates have fallen from €1.42 into the €1.38's, caused by the Euro gaining strength. 

There are several factors that have caused the single currency to gain. Firstly the news that Greek Prime Minister and Syriza leader Alexis Tsipras stood down on Thursday, paving the way for new elections. This seems to have been taken as a positive move for the Euro and last night the rate starting slipping away. This continued this morning when German and European inflation numbers were better than expected, coupled with worse than expected UK Public Sector borrowing data. 

As you can see from the chart below, in the last week the rate has been in steady decline. With a resolution to the Greek debt crisis, and decent EU economic data, this could well spell the end of the record 8 year high GBP/EUR exchange rates we have seen recently. It’s good news however for those selling Euros, with a typical conversion of €250,000.00 netting £4500.00 more in just a few days. 


China Slow down affects currency markets 

Elsewhere, the slowdown in China continues with stock markets there dropping again. This affects other global currencies because China is such a huge economy. Countries like Australia that export to China are suffering, and so the Aussie Dollar has weakened recently. The US Dollar benefits and gains strength as investors become risk averse and seek safe haven currencies. 

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If you would like to discuss your foreign exchange requirements with me, then feel free to get in touch by clicking here. I provide free consultations over the phone to help you understand what is moving the exchange rate you’re interested in, and can provide you a quote for your exchange to compare with your bank or existing broker. 

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Whether you are buying or selling property abroad, topping up a foreign account, or a business that converts currency to buy or sell overseas, chances are I can help you get a much better rate than you are currently achieving. 

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