Currency Exchange UK

 

Greece weighs Heavy on Euro

Greece weighs Heavy on Euro

After a strong week for the pound sterling last week, gains were extended this morning with the euro sinking to four-month lows against the pound.

Strong UK housing figures helped the pound, with annual property asking prices up to 4.1 per cent.

For the euro, it is Greece that is having a heavy impact on the European single currency.  By early trading today (Monday), it had reached 87.92 pence – its weakest level since the middle of September 2008.

In Greece, it is the debt situation which is proving to be a worry.  Furthermore, the nation had its sovereign credit rating downgraded late in 2009 which provided a blow.

The European Central Bank commented on Greece’s issues, saying that the nation had “much work to resolve its fiscal issues”.  Indeed, the spread between government bonds in Greece and Germany widened on Friday, giving boost to the problematic elements of having a single currency across such large numbers of countries.

Currency exchange experts hinted that any upward movement for the euro in the coming days (if at all) will be capped by the fiscal problems in Greece.