Euro: Greece finally got the break it was looking for yesterday, with the press firmly focused on troubles in the UK. Trickles of news from Germany shed little light on the future possibility of any bailout package from the EU. German and Greek bonds sold off yesterday on the back of continued ambiguity from EU bigwigs. Appetite for Eurozone debt (even the EU’s safest government Germany) has fallen considerably since the start of the crisis, fuelling concern of a domino effect. Whilst these concerns are becoming more prominent as time goes on, disappointment risks grow. EUR/USD fell from 1.3650 levels down to 1.3460 as investors shifted assets to “safer” currencies such as the dollar and the Yen. Against the pound the Euro rose to levels above 0.9150, with sterling taking the award for being the ugliest currency of the day. We open at levels above 0.9070 this morning.
- I expect a range today in the GBP/EUR rate of 1.0930 to 1.1080
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