Super Mario Hints At Euro Plan

27 July, 2012

Simon Eastman

The pound was still under pressure from the GDP reading the day before and also fears the Bank of England would introduce further monetary easing and lose its AAA credit rating whilst the Euro benefitted from Mario Draghi indicating that the ECB were ready to take action to save the single currency.

Against the US dollar the pound managed to rise by nearly 1.5 percent over the day as investors looked to buy into more riskier currencies, giving great opportunities for those looking to send money to America.

With fears that Spain will require a bailout in the near term its unlikely that the pound will drop to much against the single currency added to by rumours that Greece will eventually drop out of the EU, with one major bank Citi, raising their expectations to 90 percent this will happen in the next 18 months. The Euro is likely to remain under pressure going forward but we shouldn’t forget that the UK is in no fit state and the Euro debt crisis adds to that. The double dip recession, which is deeper than we thought will keep the pound at bay and any further bad news could mean the end of these fantastic trading levels we have seen recently.

Today sees no UK data but plenty from the Eurozone and the US. Unemployment data and CPI from the EU this morning followed by GDP figures from the States are likely to cause some movement. Stay in touch with your broker at Currency Index to avoid disappointment if you have a currency requirement coming up soon.