Stock-markets losing value continues to boost the Euro (Joshua Privett)

The Euro is receiving a significant portion of the massive capital fleeing from the USD, the Pound and various commodity currencies. Since markets opened this morning the Euro has already gained 1.5 cents against Sterling as stock markets in London opened 3% down on their value before the weekend.

China’s woes have decreased confidence in global growth for the foreseeable future to a point where investors are having to sell off shares to remove risk from their positions. China used to account for 60% of global growth, which is why worsening news from a single nation can have this kind of dire affect on the global markets.

Sterling and the USD’s recent strength was based on the accepted truth that they will both be raising interest rates within the next 6 months. China’s economy was already causing some hesitation for the Bank of England and the FED to do so, this recent news will force a wait-and-see approach. As such, most forecasters are expecting raised rates to be pushed back for another 6 months to a year. Investors are now flocking to the Euro in search of short-term gains rather than a year-long wait for returns.

I would strongly recommend that anyone who has Euros to buy over the coming months should get in contact immediately for a free quote on their transfer. This is not a short-term boost for Euro against Sterling, one of the main drivers for currency markets is interest rates, and this ‘golden egg’ for Sterling has now been moved past the horizon for anyone hoping it would help their transfer. I would not be surprised to see GBP/EUR at 1.35 by the end of the morning.

Call me on 01494 787 478 and ask for Joshua to receive a free quote on your transfer and tailored advice on your situation. [email protected] . Those with Euros to sell, email me to discuss how to ride this move in your favour to its conclusion.