As promised here’s a brief update on what’s been happening with the Euro over the last week.
The pre-budget report stole the headline but more for political reasons surrounding the debate over banker’s bonuses rather than economic reasons. The report came at a delicate moment after the Dubai debt debacle as investors grow increasingly wary of companies/countries that have high levels of debt. Investors focussed on the means by which they expect to plug this gap and as it seemed that the main approach was by increasing taxes, concerns were raised about the sustainability of any recovery. Perhaps due to the exhaustion of traders after a long hard year, the Sterling bashing that we saw this time last year did not materialise.
The data releases last week were slightly disappointing with industrial and manufacturing production data in the UK failing to grow in October. By the end of the week as concerns increased about the financial situation of Greece, Spain and Portugal, the Euro started to weaken as the countries’ outlook were downgraded from stable to Negative.
GBP/EUR Movement – High’s & Low’s of last week (07/12/09 – 11-12/09)
A movement of:1.29%
Difference on £200k
Difference of: €2,840
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
A further update will be added next week.