Currency news today

25 June, 2012

Robin Haynes

As we head into the last week of June, last week’s credit downgrade of 15 major banks by Moody’s has done little to calm the financial markets – and exchange rates remain volatile. While Spain had a perfect weekend in the football and the Grand Prix, the rising cost of Spanish government debt is still weighing on the Euro, which remains at good buying levels.

This week, although there is no England match to look forward to, we have the third reading of economic growth in the first quarter due on Thursday morning. Don’t pay the penalty of lower exchange rates if the figure is revised down, by considering your options in the next couple of days. The last week of the month is usually quiet for scheduled data releases, so Eurozone debt is likely to again dominate financial headlines. If you’re not sure what this might mean for your own currency transaction (all major currencies are interlinked), just call us at Currency Index for a chat through your options.

We also have the European Council meeting on Thursday and Friday this week, which will be watched by markets for any possible fiscal policy changes. Greece will be attempting to ease the austerity conditions attached to its bailout, although the new Greek PM and finance minister are both unlikely to attend due to illness. If the bailout is finally agreed and austerity measures accepted, we could see Euro strength (lower exchange rates for buying Euros) at the back end of the week.