Euro (€) Currency Thread

JasonLVC

Euro update from Caxton this morning :-

The UK currency came under slight pressure after the purchasing managers' index on the UK's dominant services sector fell to 56.5 from 58.4, well below forecasts for 58.0

The dip proved short lived though with market focus again turning on the shortcomings of Greece's fiscal state.

The premium that the market charges Athens to borrow is at the heart of the issue. The spread between German and Greek bonds widened to its broadest level since the euro's inception, as investors grow ever more concerned that Greece will need to turn to the EU for help.

Euro was further dented as Greek banks asked the government for more financial support, and as data revealed that the eurozone economy failed to grow in the fourth quarter of last year, with GDP revised down from 0.1%.



Looks like the Greece crisis hasn't gone away then and maybe will come back to haunt the Eurozone countries in months to come unless a proper deal is struck.

JasonLVC

And another update from Caxton FX following BoE holding interest rates :-

The pound is continuing to trade up this morning following the announcement, with direction in the short-term likely to come from developments on the campaign trail. Growing dissent in the business community over Labour's proposed National Insurance rise has solidified the Tories lead in the latest polls, with many leaders taking exception to Prime Minister Gordon Brown's assertion that they were being "deceived" by the Conservatives.

However, the pound is unlikely to push too much higher despite continuing concern surrounding Greece's fiscal situation. Rhetoric from the Bank is still of a weak, protracted recovery and the growing possibility of a hung parliament will keep sterling on the back foot. The outlook for sterling against the US dollar remains on the downside and we are expecting further falls in the near term.

Mwesty

1.147 Treading.

Hopefully this increase continues.

sabretoothtigger

Just checking the results from 9pm last night and it shows friday was a reversal day. A fairly big sterling move at first that ended in a gain for Euro, this matches my expectations as I mentioned above.

I expect euro vs sterling to gain on average in future weeks. Nothing is certain but this is the highest probability, this confirms the rapid euro rise of 25th Feb onwards.

Though it fully retraced this is normal, a rise now would only be a continuation of the trend lows since Sept 2007 (also Oct 2008, Jan 2010 ) so there is alot of historical support for euro to gain from here on (in theory)

waynehayes

I've not been on this thread since last summers hols, I'm surprised to see it on page 7. Anyway, the £ is up to €1.1615 this morning.

sabretoothtigger

One of the best rates since late 2008. Iam surprised euro has fallen this far, I'll be looking for anything cheaper because of it


http://www.telegraph.co.uk/finance/economics/7619080/Goldman-says-buy-the-pound-as-theres-little-to-fear-from-a-hung-Parliament.html

sabretoothtigger

Euro has bottomed out at its year lows and is now acting more positively http://www.youtube.com/watch?v=Ppj0EPX87wo


[0.8702] or reversed = 1.14916

aldino

Am I wrong in assuming that the recent collapse of Greece, junk status etc should be causing it to fall against the GBP?

I thought this would be good news for the GBP as it would make it stronger then the Euro...but looking at the exchange rates for today, it seems to be falling against the Euro?

sabretoothtigger

This is your good news, the Pound is stronger against the euro but the pound itself is not that strong so its similar to previous highs in the last two years

4.5% improvement in the last 6 weeks and today its reversing a bit which is normal. This might be in the region of the best price but cant ever be sure

waynehayes

What's happened to Inspector Monkfish? He used to keep this thread alive. Trading at 1.1675 at the moment.