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Posted July 30th, 2015 by Charles Purdy

What will the rest of 2015 bring for sterling and the euro?

The seemingly ever-continuing Greece saga seems to be over for the meantime, and with it, the ongoing decline of the euro.

Sterling had reached an almost eight year high against the euro in the wake of the Greek debt discussions, hitting over 1.43 two weeks ago for the first time since 2007 – even as the talks in Greece were drawing closer to a positive outcome.

Now that an agreement has been made and put into practice, investors have put more faith in the euro – resulting in the single currency strengthening again and pushing the GBP/EUR rate back down to the 1.40 level.

There can be no doubt that 2015 has already been a volatile year for the currency markets – but what’s important now is what will affect the currency markets for the rest of the year.

There are two main questions affecting the UK economy for the rest of this year: the potential rise in interest rates, and the possibility of an EU Referendum. The Bank of England (BoE) has hinted more and more in recent weeks that the Monetary Policy Committee (MPC) is behind the idea of an interest rate hike sooner than expected. If this takes place in the next six months, we could well see further strength for sterling as investors flock to the currency to take advantage of these rates. The proposed EU Referendum is still up in the air – and even if it does go ahead, this will not be for some time; questions are being raised over what impact, if any, this will actually have on the markets but until more is known this does remain a consideration.

In the Eurozone, the situation in Greece has halted for now, but questions persist – especially considering the elections in Spain and Portugal later this year, which could result in similar parties to Syrizia in Greece coming in to power, and similar struggles for other European countries. What’s more, with payments due in the coming months, the Greek government will continue to be scrutinised as the next deadlines move closer.

Disparity in the Eurozone is a very real issue at this time, with varying economic performance, which is only likely to continue in the coming months. Countries like Germany hold the purse strings and are experiencing strong economic growth, whereas others are still experiencing poverty and economic turmoil. The Quantitative Easing (QE) programme was introduced in March, and it still remains to be seen if this will have the desired effect of invigorating the Eurozone economy.

If you are concerned about how any of these events could affect your currency transfers, be sure to speak to your trader today for guidance on your currency strategy. They can keep you updated on current events, discuss your particular situation, and what it all means for you and your money.

If you want to access the best exchange rates, find out how much Smart Currency Exchange could save you here.

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Posted July 16th, 2015 by Charles Purdy

Get the best rates when investing in UK property from overseas

We share a different kind of case study this week, with this spotlight on Mark Shaw, based in South Africa, who used Smart Currency Exchange to maximise his income when purchasing a buy-to-let property in the UK, and repatriating his rental income. Mark and his wife had originally planned to move to Ireland, but then  Continue Reading…

Posted July 10th, 2015 by Charles Purdy

What does the Greek situation mean for you?

In recent months, and especially the last few weeks, the situation surrounding Greece’s debts has come to the forefront, especially in terms of currency markets – and those making transfers to move abroad. This issue originally began before the financial crisis, when the then Greek government borrowed a significant amount of money from their banks  Continue Reading…

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