We are seeing the euro rally as the bailout fund of €130Billion for Greece has been approved.
Continuous bloodshed in Syria and turmoil in the Middle East is causing risk aversion, which has seen gold prices rally overnight.
RBS has reported losses twice as much as they initially anticipated, which is a repercussion of having to write of Greek debt. The loss is near the £2 Billion mark rather than previously predicted £1.1 Billion.
UK markets are looking to see the forthcoming UK budget and GDP figures which are not looking promising. Although inflation is set to come down further this could also imply negative sales growth as it doesn’t seem that energy prices are being affected, all of which results negatively on GBP.
In conclusion if you look at risk versus benefit with GBP/ EUR over the last four years, historically the rate is still favorable to buy the euro. This is the time to ensure that you have safety nets in place at your budgeted rate.
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