What next for the Eurozone?
Over 60% of UK leisure marine turnover exports are heading to the eurozone. Trying to understand the turbulent financial markets and what influences the sterling euro relationship is a task for most of us.
Experts, Currency Matters, have been talking to the British Marine Federation’s (BMF) Tom Chant.
The European sovereign debt crisis continues to pose a significant threat to the recovery of the eurozone and to the wider global economy. The €109bn bail out agreed in July for Greece may have averted an immediate significant Greek default but the eurozone continues to face significant challenges.
In fact, despite Greece’s significant austerity measures, figures released by the Greek government over the weekend project that the 2011 deficit will be at 8.5% of GDP, well short of the 7.6% target agreed to secure the first bailout. Greece needs to secure the next tranche from the bailout fund of €8bn or it will run out of cash this month.
The ongoing uncertainty over the economic recovery in the UK and eurozone has caused some uncertainty in the outlook in the exchange rate.
So far the euro has shown a surprising amount of resilience to the European sovereign debt crisis. Against the pound the euro appreciated to a EURGBP high of 0.9083 (GBPEUR 1.1010) at the start of July before falling back to 0.8527 (GBPEUR 1.1727) briefly in September. Today, 3 October, the rate trades in the region of 0.8585 (GBPEUR 1.1645).
All BMF members have access to information and advice from Currency Matters as one of the BMF member benefits.
As well as reading the financial press, you can get views and comments on currency by reading the Currency Matters blog at www.currencymatters.co.uk/blog/
Or contact Currency Matters on 01695 581 669 to discuss how you can save money and eliminate risk.
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