Euro (€) Currency Thread

MikeKBRFX

Trading back up at 1.1300.

The Euro could be under a bit of pressure today as the deadline for the Bank of Spain Cajas restructuring plan approval is fast approaching. Figures are also reporting that Spanish banks are facing a capital shortfall of about €15 billion. This is without analyst's estimates of the figure rising to €120 billion once real-estate related losses are factored in. With the prospect of such a massive debt burden; it could mean another bailout?

FreddieM

MikeKBRFX wrote: »

Trading back up at 1.1300.

The Euro could be under a bit of pressure today as the deadline for the Bank of Spain Cajas restructuring plan approval is fast approaching. Figures are also reporting that Spanish banks are facing a capital shortfall of about €15 billion. This is without analyst's estimates of the figure rising to €120 billion once real-estate related losses are factored in. With the prospect of such a massive debt burden; it could mean another bailout?

Would that mean we could get a good exchange rate today?

pingua

I have found some euros from a few years ago. Should I hold on to them or change them back? Would I be making a loss if I changed them back?? My brain can't get round all this exchange stuff.
We may be popping to dublin at some point so if its better to use them there rather than hold on to them then I will - just can't work out whats for the best.

dzug1

If you've got a use for them hang on to them - you'll avoid two lots of exchange costs that way and don't have to worry about the rate.

BOBS

Anyone else watching the Euro - it has kept slowly falling over the past couple pf weeks .............. need a crystal ball ............ hoping it rises a bit soon!

JasonLVC

Yesterday’s session was dominated by headlines rather than economic data. The day started with news that Moody’s may downgrade the UK’s credit rating. Comments followed from the German finance minister and the IMF highlighted the fact that whilst a Portuguese bailout has been approved and a Greek resolution may be in the offing, the debt situation is still going to throw up some major issues. The euro suffered a softer day as a result, but it should recover today.

Today’s session could throw up a good deal of volatility, in the euro at least. The Bank of England will keep the UK interest rate on hold at 0.5% and the ECB is highly likely to do the same with respect to its 1.25% base rate. With the market tuning into Trichet’s press conference at 13:30, there is likely to be some significant moves. The market will be evaluating just how hawkish the ECB is and most importantly whether it will indicate a rate rise at next month’s meeting.

STERLING/EURO: After an early decline on Moody’s UK downgrade warning, this pair steadily climbed by almost a cent to trade comfortably above €1.12.

• The euro suffered from comments from German financial minister Schaeuble. He called for a “substantial contribution” from debt holders to a Greek resolution, indicating support for an extension of maturities on by seven years (naturally met with negativity from investors). The euro was also put on the back foot by a surprise contraction in German industrial production data, the worst figure in four months.
• Nonetheless, Trichet is expected to give the euro a boost today by stating that the ECB will be adopting “strong vigilance” (or an equivalent phrase) towards eurozone inflation levels. Eurozone inflation is at 2.7%, well above the hawkish ECB’s official target, and this phrase represents something of a promise to hike rates at the ECB’s subsequent monthly meeting. As such, this pair is likely to come under pressure, though a July rate rise has been priced in to some extent.

BOBS

whoop whoop - exchange rate up a bit today then

JasonLVC

The euro was very much out of favour again yesterday, as investors demonstrated their nervousness about the Greek issue. News that Moody’s rating agency placed three major banks on review due to their exposure to Greek debt put the single currency off to an awful start, and more bad news followed. Comments from the Greek PM indicating a willingness to resign provided yet more reason to sell the euro.

Today’s session brings the key monthly UK retail sales figure. Expectations are of a 0.5% contraction, after April’s strong 1.1% growth. Such a figure would normally put sterling well and truly under pressure, but market focus is fixed on the Greek issue.

• As well as Moody’s scrutiny of three large French banks, Portuguese banks have also been put under review. An FT report that eurozone governments may have to contribute an additional 20bn euros sparked further worries.
• As has been the case in recent months, sterling’s gains have little to do with the merits of the UK economy. UK unemployment data was very poor indeed yesterday but failed to distract the market. This pair could continue to rise based on debt fears, but today’s UK retail figure is likely to remind investors just how unappealing sterling is at present.
• The current trading level is €1.1425.
• Source (CaxtonFX)

c-m

Absolute rubbish exhange rate right now. Some places paying out less than €100 for £100. Shocking

dzug1

c-m wrote: »

Absolute rubbish exhange rate right now. Some places paying out less than €100 for £100. Shocking

So just who is charging more than 10%? Name and shame.