The euro starts October no doubt happy to see the end of Summer after a particularly volatile last few months. The bad weather and darker days to come may prove to be the perfect metaphor in Autumn to describe the ailing single currency’s limp to the end of the year.
By Luke Trevail of TorFX
Numerous factors are affecting the euro currently with Italy’s newly formed Government teetering on the edge of collapse already as the political crisis worsens. It’s the comments from ECB President Mario Draghi however that has weighed heaviest on the markets with a threat that he is ready to deploy another long-term refinancing operation to fund banks.
The risk to devaluing the euro is great which will come as good news for those looking to move funds from the UK to Spain with €1.20 being the realistic level that most can expect to reach in the coming weeks.
In the UK we are seeing improved fundamental figures being released weekly, and although we may not be out of the woods just yet the view at the end of the long tunnel is now in front of us, and the view is of prosperity and continued growth.
The recession seems to be finally behind us, and although caution is always advised we can look optimistically to the future. Those who still have euros in their pocket to move to the UK however may not be particularly happy and the advice is get out while you can as the single currency has now turned into the proverbial hot potato.