Europe agrees new bailout package for Greece

28 July, 2011


Eurozone leaders have announced a second bailout package for Greece, this time involving private as well as government investors. This may in time be seen as a partial default by Greece, when the credit agencies next produce ratings, but for now the perception is that the outcome is as good as it could have been – leading to some strength for the Euro.

Sterling has done reasonably well out of the crisis against other currencies, with US Dollar rates showing their biggest weekly increase since May. Rates for sending payments in US Dollars are now near their best levels for 6 weeks.

With very little data due out on Monday, markets might now settle down, with two main points to consider for the short term:
– Will the Euro strengthen further if the Greek bailout package is seen as positive by the rating agencies?
– Will the Pound weaken if the phone hacking scandal continues to reduce confidence in the stability of the UK government?

With these in mind it is worth remembering that you can fix exchange rates in advance, to eliminate the risk of falling exchange rates, using a small deposit. Contact Currency Index to discuss your options.