The euro has fallen below 1.39 against the dollar and remains above 1.16 against the pound. This appears to be on the back of European Debt Fears returning, particularly for the Irish economy.
This issue has always been in the background and now the threat of QEhas for the time being beenliftedfor sterling, we are seeing a resurgence for the GBPEUR rate. This is very interesting as the ECB has made huge efforts to protect the euro via the stability fund. The old adage of pouring water into a bucket with a hole in rings very true.
There is reason to suspect that this will not be a tempoary blip. The ECB started buying up bonds a few weeks ago and the Irish and Portuguese bond yields are at record highs. If you have a transaction to make, get in touch to find out how this affects the market.
Sterling has had some negative data this morning following the Royal Institute of Chartered Surveyors announcing a much bigger fall than expected in house prices. We have today a release from the NIESR, the National Institute of Social and Economic research, an estimatelooking at GDP for the future. This could be a market mover so if you have any currency requirements, please get in touch and we can offer guidance on how to get the most from the market.
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