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By Alex Ellis

Today Portugal is set to auction £1.25 billion in bonds in order to raise capital to combat the country’s growing debt. Portugal has categorically stated that it requires no form of bailout, however when Ireland was in a similar situation government officials stated the same. The whole point of today’s exercise is, as discussed an attempt to raise capital however it could actually paint a  much clearer picture of what the future may be for Portugal’s economy.

In the past when Ireland and Greece took the bailout we saw some great buying opportunities for those clients looking to exchange GBP to EUR as the Euro exchange rates weakened as a result. I would expect the same to happen if Portugal were to do the same. However this does not leave the pound totally unscathed, the UK is of course a member of the EU and therefore is required to offer financial aid to any country that faces an economic crisis. This will come at a time when we can ill afford to offer any financial support as our own economy is already struggling.

The auction is due to start at 12:00AM (GMT) so if you would like further information prior or in the aftermath of this release then please feel free to contact us.

By Alex Ellis

The spotlight has once again moved over Portugal as French and German leaders have encouraged the country to take some form of bailout from the IMF. Previously when we have seen other countries fall into financial difficulty the Euro exchange rate has suffered as a result and therefore the predictions are that we could see a similar affect if Portugal falls into turmoil. Tomorrow there is a key bond sale for the Euro zone and this is where Portugal will attempt to raise €20 billion in order to combat the growing debt.

If contagion is witnessed then we could see a bigger monster emerge if Spain follows suit; currently the county’s unemployment stands at 20% and it is in a very precarious position. Spain would require a much larger bailout than Portugal which is rumoured to need around €66 Billion.

Today is a very quiet day in terms of economic data which could affect exchange rates, the only data of note is Canadian Housing Starts at 13:15 which show the strength of the housing market in Canada. Other than this all eyes will be on the bond sale tomorrow and the Bank of England’s interest rate decision at 12:00AM (GMT) on Thursday.

If you are interested in finding out more about any of these releases or how they may impact the value of your conversion then use this site to contact an experienced currency broker who can help to guide you through the process.

By Jonathan Watson

The US dollar remains strong despite some very turbulent times. We have seen the value of the dollar fluctuate majorly in recent years. One of the key issues for me is the unemployment rate. Obama will have been overjoyed to see the unemployment rate fall to 9.4% for December, from 9.8% for November, the biggest drop since 1998. Closer analysis of the situation however revealed that part of the reason for this drop was that 260,000 people were actually no longer looking for work and hence removed from the total.

Nevertheless the overall economic siutation seems to be improving and longer term I expect the dollar to regain ground against both the euro and sterling. Despite sterling starting 2011 well, particularly against the euro, I would expect further dollar strength on the GBPUSD rate as their economic situation improves.

If you have currency transactions to perform for any currency why not get in touch to see if we can save you money. We offer not only excellent rates, but expert guidance and opinion that could well save you money.

By Jonathan Watson

GBPEUR has  improved by over 2.2% this week . The low of under 1.16 has been improved on with the rate now at just under 1.19. This is presenting a fantastic opportunity for those buying euros with sterling. The question is will it last? I now personally think it may do despite the weakness ahead for sterling. Spain and Portugal are to auction off  debt bonds in the coming weeks and the insurance and interest on these bond sales could be massive. Would you consider investing in Spain right now?

Depending on the outcome here we could see some massive losses for the euro. If you have a currency transfer for euros or any other currency why not get in touch with us to discuss the requirement? As specialist currency brokers we are exceptionally well placed to offer guidance that could save you money.

By Jonathan Watson

Sterling has made some impressive gains against the euro and a few other currencies. I suspect however these will not last long.

The UK is in a perilous position with rising unemployment and rising inflation. We have also seen profit warnings today from a number of high street retailers. With 60% of the UK’s GDP accounted for by retail sales the snowy weather may be leaving a bit more of a chill than expected!

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