The news of a crisis in the Eurozone has been the dominant force in shaping the market over the last few weeks with uncertainty from Greece, Portugal, Italy and Spain weighing heavy on sentiment.
By Luke Trevail of TorFX
The impact of this uncertainty has filtered in the currency markets so far this month as the rate for Pound Sterling vs. Euro has risen sharply to a fresh 4 year high of €1.2703 before coming back slightly.
Objection to proposed austerity measures in Spain led to police firing rubber bullets after thousands of protestors swamped the street of Madrid. Prime Minister Mariano Rajoy commented that Spaniards have never experienced such a recession and “the excesses of the past are being paid for right now”.
This news should prompt buyers of the euro to take advantage of these prices, but if they have time to be patient it may well pay off to wait as rumours of €1.30 by the end of the Summer are flooding the market. Of course the opposite is true for anyone still clinging onto their Euros who expect things to miraculously improve over the coming weeks, the euro is weak and looks like it will only get worse.
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