Euro Pound Exchange Rate Report – 1st March 2010
March 1, 2010 Leave a comment
1st March 2010
The Pound weakened against the Euro after a report showed a greater-than-expected increase in government spending in the fourth quarter, adding to concern the U.K. may struggle to manage its rising debt levels.
Sterling headed for a second weekly decline versus the single currency after data showed state spending increased 1.2 percent. Revisions to gross domestic product data showed the economy shrank 6.2 percent since the first quarter of 2008, making the recession the deepest on record.
With this recent downtrend on GBP/EUR this could be a great opportunity to look into a forward contract. A forward rate can protect your currency against any pitfalls within the market safeguarding your transactions against any further market downturns. You can purchase a ‘Forward’ for anything up to 2 years in advance with a 10% deposit.
With the pending problems in the Greek financial sector we may see Sterling Strength if Germany and France decide to come up with a ‘Bail Out Plan’, however on the flip side the ‘Bail Out’ could be seen as positive move from the Euro as it will show solidarity from the Euro Zone as whole.
If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open a currency exchange account today.