If you are buying overseas, you’ll need to keep an eye on exchange rates. Peter at Pure FX can provide free advice. He writes, this week, the euro had a decent week last week, gaining half a cent against the pound and US dollar, as Eurozone finance ministers agree a deal to cut Greece’s debt to 124.0 per cent by 2020. This includes dispersing some €30.0bn to Greece while the Hellenic country will be issued fresh loans to ‘buy back’ its existing debt, so it can then pay a lower interest rate. Convoluted as this is, it helped the euro because it shows us Europe’s commitment to Greece’s euro membership.
However, the euro’s gains were nonetheless limited as economic data points to a protracted slowdown on the continent. The latest survey from the Eurozone’s factories revealed the sixteenth consecutive monthly slowdown, with little sign of a pick-up before 2013. Unemployment meanwhile hit 11.7 per cent last month, particularly as the jobless in Spain and Italy pile up. Hence, though the Eurozone may not be about to fall apart, its economic prospects don’t look bright. Email back for a free chat with Peter about spot rates, forward contracts etc.