Saturday, 22 August 2015

Saturday, 22 August 2015

Latest currency update as fears of a "Grexit" are beginning to fade

The £ closed the week at below 1.38 € , having been over 1.43 a month ago, a reduction of 3.5%. So what has caused the change? Here is the analysis of Joe Mayhew, Senior Currency Broker at Foremost Currency Group.

Last week the euro managed to gain on the bulk of its counterparts. There are a number reasons for the Single Currency’s recent gains; firstly, now that Greece are beginning to implement the reforms asked of them by their creditors, fears of a “Grexit” are beginning to fade.

The Greek reforms have been pushed through parliament, mostly by Alexis Tsipras taking a significant U-turn on policy and courting rival parties, which has left him extremely unpopular with his own party. This about-face has driven him to set a snap election that could see him ousted from his position of Premier on September the 30th. Whilst this could cause some uncertainty for Greece, the troubled State paid off over €3.3Bn last week to the ECB and the previous duels and mind games, that had been so heavily publicised, now seem like a thing of the past.

Much of the pound’s strength over the past year has been due to speculation over the BoE raising rates. Yet, with Governor Carney still as unreliable a boyfriend as those on Ashley Madison’s (now public) client list, his so-called forward guidance appears as clear as mud. In short this means volatility; sterling rates could remain range-bound for some time and the swings between the peaks and troughs could either see you make a healthy profit on your exchange or make you as red-faced as a social networking adulterer.

One way to take advantage of these swings is to make use of your account manager at Foremost Currency Group. They can act as your eyes and ears keep you up to speed with your cross’s movements and help tailor a strategy to help make the most of your currency. Get in touch with our dedicated broker today to find out about the different types of contract on offer to you or, if you don’t currently have a trading facility, then simply click here to get registered and learn about the options open to you.
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