Thursday, 3 November 2011

Euro crisis

Dismay, coupled with rage have been words used to best describe the reaction by France and Germany after they thought they had reached an agreement with Greece - the details of the Mer-kozy plan were yet to be fleshed out but it certainly didn’t involve delays, referenda or the potential for rejection by Greece. Mr Papandreou has to face a confidence vote before he has the infamous referendum so that will make the markets uncertain for a while yet. The Euro remains at a low ebb and that is fantastic news for anyone who wants to buy Euros. I would strongly urge buyers to make sure you do not fall into the potential trap of assuming that further Euro weakness will follow. The Pound has reached this level on three previous occasions recently, but each time has slumped back without making further headway and as we all know, history does have a habit of repeating itself.