Forex News: Euro vulnerable as Greek drama rumbles on

The Euro remains vulnerable as the debate over Greece’s next bailout package continues, and rumblings of further problems likely for the wider economy over the coming weeks.

By Luke Trevail of TorFX

Exchange rates for euro buyers have come down a little as UK economic fundamentals over the last 3 weeks have been continually poor which provides a great opportunity for those euro sellers who’ve been waiting for anything less than €1.20 to off load some euros following investment maturity or property sales.

For euro buyers, it’s likely to only be a matter of time before we see some more fragility of the single currency as the debt crisis problem will likely worsen. Indeed, this morning Germany posted negative growth for the 4th Quarter of 2011 as the GDP figures showed a 0.2% contraction attributed largely to the lack of demand in exports.

The picture for the pound remains blurred at best, with rates against the most actively traded currencies being fantastic on one hand as we post rates near a 14-month high versus the Euro, and horrific on the other as GBP vs. Australian and New Zealand Dollars plunging to the worst rates in over 20 years.

Choppy trading recentyl0 has been undermined by the credit agency Moody’s warning this week that it could cut the UK’s triple A credit rating as problems persist for sterling, particularly the threat of falling into another recession.

Trading advice for any currency buyers or sellers is to be warned of continued volatility with some good euro prices still available and with China issuing support for the monetary measures recently taken by the ECB.

Luke Trevail is a foreign-currency broker working for TorFX, a forex broker established in 2004 to provide foreign exchange and international payments to both individuals and companies. TorFX is authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Their FCA number is 517320. To verify their authorisation, you can visit the Financial Services Register and search the register using their FCA number.



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