GBPEUR hits 1.29- EURUSD drops to 1.20- Uncertainty in Europe- Greek Elections

First of all, happy new year to all my readers!

As some of you may have noticed, the markets haven’t taken a back seat during the Christmas period the volatility has been massive.

The GBPEUR exchange rate hit a 3 year high of 1.29 last week, the main reason for this is the amount of uncertainty coming from Greece at the moment with their elections coming up.

The Syriza party in Greece are gaining a massive amount of popularity, and they are known to be anti EU & Anti IMF; so if they did win the election we could see Greece turn their back on Europe, hence the massive weakness in the Euro over the last fortnight.

The problem with this is that if the Syriza party wins the election, this could also open the options for other countries within the EU to turn their backs on previous financial agreements, which could be detrimental for the Eurozone as a whole.

The main focus point for individuals looking to trade the Euro this month is the next ECB meeting on 22nd January. It is expected that Mario Draghi will announce a QE plan of pumping 1 trillion Euros into the economy, if this happens we can expect the Euro to weaken further.

Last year we saw the EURUSD drop from 1.30 down to 1.20, and the GBPEUR go from 1.20 up to 1.29. In the first Quarter of 2015 we can expect more strength from the USA and more weakness from Europe following the next few ECB announcements and the uncertainty surrounding Greece.

If you have any particular requirements in reference to a different currency pair then please email me directly on prem.raja@currencies4you.com and I will be happy to assist you.

My company guarantee an unbeatable exchange rate, so if you are currently using a bank or a different provider for your FX at the moment, contact me for a free price comparison to see how our prices fare up to what you are getting, I am 100% certain that I can offer you a better price and save you money on your transactions.