For my part, I’d say the leaders of the Eurozone have pretty good reason to feel okay about how 2012 has gone. After all, they overcame the biggest challenge facing the currency union, that of doubts about its continued survival, while making big progress on a banking union, and keeping all its members on-board. I don’t think we should under-estimate just what an accomplishment this is. Back in July, when all you could read about were the inevitable Greek exit, Spanish bankruptcy, or wholesale Eurozone collapse, I moved quite a bit of my savings out of my Spanish account (I’m based in Madrid) to the UK, I was that concerned. For us to look at where we stand now and say, well, Greece … [Read more...] about What does 2013 hold in store for the euro?
euro crisis
Signs of Chinese recovery lift the euro
For instance, if your life is anything like mine, then you’ll probably occupy the same rooms, see the same people, and use the same objects, day in day out. This is neither good or bad, but just how daily life is. It’s pretty constant. But if you were to look at the foreign exchange world this week, you might come away with the impression that the world had completely changed within the span of seven days. To whit, the euro has shot up against the pound and US dollar, gaining more than a cent against them both since last Friday. Now, I know that might not sound too significant, but a cent movement is pretty big. For the euro to move that much in a week, there have to be real changes … [Read more...] about Signs of Chinese recovery lift the euro
US dollar loses out after ECB unveils its rescue scheme
Welcome to the Pure FX account of the latest changes in the foreign exchange rates. This is intended as a brief guide to movements in the exchange rates this week, to put you in the best position when you exchange currencies. Exchange rate changes GBPEUR: 1.2621 to 1.2601 (-0.158%) GBPUSD: 1.5789 to 1.5939 (+0.95%) EURUSD: 1.2554 to 1.2644 (+0.717%) As you can see above, the US dollar was the biggest loser last week, shedding almost 1.00% against the UK pound and euro. This continues a trend we’ve seen since early August, when the buck started to slide against its counterparts, as expectations that the European Central Bank would act to “preserve the euro” boosted global … [Read more...] about US dollar loses out after ECB unveils its rescue scheme
Euro gains as market awaits Draghi’s silver bullet
Welcome to the Pure FX account of the latest changes in the euro exchange rate. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Changes in the exchange rate: GBPEUR: 1.2765 to 1.2593 (-1.347%) GBPUSD: 1.5687 to 1.5787 (+0.637%) EURUSD: 1.2289 to 1.2508 (+1.782%) What’s affected the rate this week Super-Mario to the rescue? As you can see above, the euro has been the big winner in the past week, gaining ground against both the pound and US dollar. Oddly enough though, this isn’t because of anything that’s happened, so much as hopes regarding what might happen. In short, the market is on … [Read more...] about Euro gains as market awaits Draghi’s silver bullet
The regions’ role in the seemingly unstoppable slide towards Spain’s bailout
Spain’s economy minister, Luis de Guindos, has insisted again that Spain will not require a full sovereign bailout. But does anyone believe him? Almost certainly not. During its seven months in power, the government of Mariano Rajoy has been repeatedly forced to backtrack on pledges and resolutions. The promise not to raise taxes has been followed by increases in income tax and VAT. The assertion that social spending would be ring-fenced has been followed by cuts to health and education. And the claim that Spain would not require a bailout for its banks…well, you guessed it. So when Guindos says there won’t be a full-blown bailout, because the Spanish economy is strong enough to withstand … [Read more...] about The regions’ role in the seemingly unstoppable slide towards Spain’s bailout
Euro sinks as Eurozone commitment wavers
Welcome to my weekly account of what’s affecting the euro exchange rate. Changes over one week: Pound to euro: 1.267 to 1.282 (+1.2% increase) Euro to US dollar: 1.219 to 1.226 (+0.53% increase.) Further evidence this week that the Eurozone’s politicians inhabit an alternate plane of existence, in which the economic woes befalling us mere mortals are but a cipher, or passing dream. French Finance Minister Pierre Moscovici said to officials in Washington: “People are, I think, happily surprised about what we're doing.” To which, I would have asked Monsieur Moscovici had I been there, to which people are you referring? Because, based on the tens of thousands of people protesting … [Read more...] about Euro sinks as Eurozone commitment wavers
Euro declines on Spanish bank run rumours
Here is my latest update on the euro exchange rate, covering the 18th to 25th May 2012. This is intended as a brief guide to what’s affected the exchange rate this past week as well as what might happen next, to help you decide if now’s the best time for you to change currencies. This past week: 1. The euro fell to 1.27 against the US dollar, its lowest point since July 2010. This is as markets (over?) reacted to speculation Greece will exit the euro inside weeks. In addition, the suspension of Bankia shares, as the troubled Spanish bank announces it needs €12bn more in aid, contributed to concerns about a bank run in Spain. How might this affect you? Obviously, if you reside in … [Read more...] about Euro declines on Spanish bank run rumours
Euro to end as Greece exit nears?
Here is my latest update of the British pound to euro exchange rate, covering the 11th to 18th May 2012. This is intended as a brief guide to what’s affected the exchange rate this past week as well as what might happen next, to help you decide if now’s the best time to change currencies. Pound to euro: -0.72% decrease on the week (from 1.254 to 1.245) +2.33% increase on the month (from 1.217 to 1.245) This past week: 1. Right-wing UK newspapers including The Telegraph and Daily Express have been openly discussing this week the possibility that the euro might soon end, as economists put the odds of Greece leaving the euro at 50.0% and above. 2. The pound has lost a cent against … [Read more...] about Euro to end as Greece exit nears?
Pound gains as Spain teeters on the brink
This is my latest update of the British pound to euro exchange rate, covering the 6th to 13th April 2012 period. This is intended as a brief guide to what’s affected the exchange rate in the last week, to help you decide if now is the best time for you to change currencies. I wouldn’t blame Spanish Prime Minister Mariano Rajoy for feeling a little disgruntled right now. Like a good student, he has listened to the teachings of his EU professors and announced spending cuts of some €28 billion, not to mention €10 billion more in so-called efficiency savings in health and education. Has this restored market confidence in Spain? Not an inch. In fact, since announcing these measures, banded … [Read more...] about Pound gains as Spain teeters on the brink
Pound slips on surprise UK GDP downturn
UK sterling has given up almost a cent against the euro this week, as the ONS (Office for National Statistics) tells us Britain contracted -0.1% more than previously thought in Q4, to a total –0.3%. Obviously enough, this has stoked concerns the UK might re-enter recession in 2012, and in fact the OECD (those cheery fellows!) have already made this prediction. Bright side for Britain Fortunately, on the flip-side there are plenty of economists who accuse the OECD of doom-mongering here, and indeed UK performance in 2012 has been pretty solid so far. Both the manufacturing and services sectors expanded these past 3 months, while exports also enjoyed a solid increase. This suggests the UK … [Read more...] about Pound slips on surprise UK GDP downturn