Currency Market Analysis

Currency Market Analysis

In the last month we have seen
the Euro make significant gains against the Pound, the Rubel and the
Krona. While there are certainly factors locally in the UK, Russia and
Sweden that are contributing to this, the main reason for the Euro
strength is a massive change in overall market risk sentiment, as a
result of the turmoil on the world’s stock markets, highlighted most
significantly in the last 2 weeks by the closure of the Chinese stock
market. When stock markets are in this type of turmoil, big investors
move out of “riskier” stock positions into “safer” investments like
government bonds in stable currency zones. The largest of these is the
US, hence the massive jump in Dollar strength, but the second is the
Eurozone, hence the big jump in Euro strength.

GBP-EUR is around
8% worse, RUB-EUR is around 14% worse and SEK-EUR is around 2% worse
off than last month. There is no real short term end to this trend, so
it is likely we will see the Euro continue to push both the Pound and
the Krona down, and as such it is likely that any clients with payments
to make into Euros in the next couple of months would do well to secure
their currency ASAP.

NOW IS THE TIME TO PURCHASE OVERSEAS PROPERTY