Best Exchange Rate Pound to Euro : The Pound Continues to Flourish Against The Euro.

April 23rd, 2012

On the 7th February 2012, getting the best exchange rate pound to euro continued to improve, as the pound strengthened even further and the UK continued to reap the rewards of vetoing the euro all those years ago. The story is not quite so positive when examining the best exchange rates for US dollars, as speculation arises over potential easing from the bank of England.

The picture emerging is that the UK and the US are becoming an increasingly safe haven for investors who are fleeing the euro debt catastrophe in a mad panic. The situation is worsening as the prospect of Greece failing to reach a debt management agreement and the likelihood of hard default looms. It isn’t just the UK and the US where the euro is struggling, it fell against virtually all of the worlds most traded currencies in early February 2012.

If Greece was to be bailed out for a second time, it is reported that the bail out figure would likely be in excess of €140 billion. To secure this bail out tough austerity steps would need to be agreed. If these steps cannot be agreed and Greece fall into default, this could have profound effects on the best exchange rate pound to euro and would have a knock on effect on the wider world economy.  More recently the Euro has salvaged some ground and has risen slightly, but the common theme seems to be that it heightens slightly but dips back down lower and lower as the situation in Greece reaches a crescendo.

The general feeling among European leaders and critics is that Greece simply will not be able to cut its spending to the degree required. Government spending cuts of up to 2% are being recommended. It has also been advised that the minimum wage is reduced and long holiday entitlements which can be up to 2 months should be decreased. Labour markets will need to be more competitive and flexible and the government has been virtually ordered to re-capitalise its banks.

Best Exchange Rates UK are experts on matters affecting world currencies and foreign exchange, we monitor the best exchange rate pound to euro on  a daily basis and we are always up to date on what is going on both politically and financially.

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