Financial And Currency Overview - 2012

Published on 3/30/2012 in Buying Process

Nothing seems to be making much of a difference in the currency markets at the moment. In itself that is a contradictory statement to make.

Following the last couple of months of concern with Greece and the lead up to the UK budget, both matters have passed us by without having any real impact upon exchange rates. Finally after much political haggling the Eurozone Finance Ministers agreed to release the necessary funds to Greece and stop them (for the time being) from defaulting. How long this money will last is the big thorny issue and the poor Greeks are having to make all sorts of sacrifices.

The big question now is has contagion been stemmed?

Not if you listen to all the pessimists by all accounts; it's the turn of Spain and Italy next. It is true, however, that both governments are experiencing some hiccups within their own countries. In Spain we know that they will not achieve the budget set by them for 2012 and the recent local elections proved to be a very difficult one indeed for them with one of the biggest regions, Andalucia, almost turning against them. They did, however, manage to hold 50 seats compared to the 47 won by the PSOE. The turnaround was a protest against the recently introduced new set of austerity measures and this in a region where the regional deficit is more than double its 1.3% of Spanish GDP for 2011.

Euro CalculatorIn Italy a similar situation is looming as Mario Monti who was brought in to restore order to the country’s financial plight is facing a revolt form the unions and fellow politicians.

With rates on bond sales being a key part of any further financial stability, pressure will continue to mount on both these countries future bond sales.

The other matter for EU to deal with is the coming together of the two bailout funds, the EFSF (European Financial Stability Facility) and the ESM (European Stability Mechanism). They believe the larger the fund the more confidence the watching world will have in the EU’s ability to bail out any country without breaking the back of the fund. Germany and Finland in particular have been very much against merging these two funds, however, it does seem Angela Merkel is yielding to the pressure to achieve such but she has to balance this decision against her electorates wishes, a tricky one!!! What ministers do seem to agree on is that there is no room for complacency.

Looking at the UK there has been a mixed bag of news with bankers bonuses continuing to seek headline news and news of potential job losses through companies such as the Game Shop. Banks are never far away from the headlines and again this happens to be the case with RBS as the government considers how it should conclude its discussions with an Abu Dhabi sovereign wealth fund who wish to buy part of RBS. Is it a right time to sell particularly as the taxpayer will face a bigger loss than that already costed. You can flip a coin on this one and still not win.

With mortgage applications also proving to be elusive the fragility of the UK economy once again raises its head. Let’s hope that Lord Browne (former head of BP) is correct when he forecasts that the UK could benefit by up to 50000 jobs with the possibility of shale gas fracking doubling the reserves of gas in the UK.

Whilst over in the States all had been going particularly well until Ben Bernanke Federal Reserve Chairman cast some doubt over whether the sharp decline in US unemployed figures could be sustained without the demand increasing across the bigger picture, unusually he was a mlittle downbeat.

If you look at what has been happening with rising inflation and an improving job market, the possibility of further quantitative easing is becoming a little more distant. His comments did however have a temporary impact upon the exchange rates as the dollar did retreat a little against the pound and the euro.

So what about exchange rates? The ranges have been pretty short and are


£ to $: 1.573 to 1.596


£ to €: 1.187 to 1.203


€ to $: 1.317 to 1.337

Written by: Steve Tiley (Moneycorp)

About the author:

For more information about how Moneycorp can save you money when sending money abroad, please visit the dedicated Eye on Spain/ Moneycorp website.

Right arrow icon Send to friends   Right arrow icon Printer friendly version    Right arrow icon Submit your own article


propertymesh said:
Wednesday, September 5, 2012 @ 11:04 AM

PropertyMesh - The reality network
PropertyMesh provides a platform where various property agents and customers interact with each others.
India's fastest growing online real estate service provider.
Buy, Rent, sell, lease, Property in India,Delhi,Gurgaon,Ghaziabad,Noida,Lucknow. Rent Home,Flat 2BHK-5BHK,Villa,Floor,Guest House,Office Space,Commercial Space,Showroom Space,Retail Space,Shop Space real estate. rent or lease residential flats, studio apartments, bungalows and commercial or office space across India. available for sell,rent,buy.
forr more detail

Duncan f. Bover said:
Sunday, April 1, 2012 @ 8:59 AM

My interpretation of all the tight exchange rate bands is that there is a lot of protection of the € so that if it looks like if it's weakening some of the major countries are stepping in to buy €'s to keep it stable. Similarly if it appears to be getting too strong, thus weakening eurozone countries export potential, they're stepping in and selling €'s to keep it stable. This creates an abnormal and stable market, but doesn't reflect the true economic global situation.

Only registered users can comment on this article. Please Sign In or Register now.

Comment Using Facebook:

Related articles in this category

"Ever Thought of Retiring to Spain?", She Asked

10 Year New Build Property Insurance - Seguro Decenal

2007 – The Outlook for Spanish Property….

4 Ways To Help Your Kids Enjoy Their Spanish Holiday

A Quick Guide to Spain's Autonomous Communities

A Room With A View

Agent Property Sharing Systems Cost You Money

Aparthotels - Touristic Apartment Legal Requirements

Bank Guarantees for Spanish Off Plan Developments

Being a Film Set Extra in Alicante

Bored In Spain? Not The Spanish

Breach of Contract - Off Plan Success Story

Building Defects in New Properties

Bullfighting in Spain - On its Last Legs?

Buy Property Safely In Spain...NOT!

Buying a Property in Spain - 10 Points to Consider

Buying a Property in Spain - The Private Contract

Buying A Property in Spain Just Got Safer - And Much More Affordable!

Cave Houses in Spain - ADSL Included!

Completing a new property purchase

Consumer Law - Abusive Clauses In Your Contract

Costa Brava Holiday Ideas

Currency Exchange from Sterling to Euros

Deadly Secrets And Those Books About Spain

Decreto 218 - What It Is And How It Affects Buying Property In Andalucia

Deposit Contract

Dispelling The Myths Of What Is And Isn’t A Snagging Defect And Some Amusing Responses From Builders

DIY snagging - Some pointers on how to ‘Do-It-Yourself’

Do Not Move to Spain if…..

Documento Informativo Abreviado. Brief Informative Document (DIA)

Don't Blame Spain

Don't Criticise the Junta's Actions, Only the Delay in Implementing Them

Eco-Friendly Holidays

Financial And Currency Overview - 2012

Furnishing your Off-Plan

Getting Planning Permission in Spain

Getting The Best Euro Exchange Rate

Help! I'm Busy But Poor!

How to Choose an Architect in Spain

How To Spot The Timeshare Fraudsters

In Times Of Recession Some Imagination Is Needed - Option To Buy

Is Anyone Still Moving To Spain?

Is Disney Coming to Spain? That'll be No.

Is it Dangerous to Buy Property in Spain?

Is Spanish Residential Construction Showing Signs of Recovery?

Is There More To Spanish Wines Than Just Rioja?

It Is Possible Not To Pay Enough For A Property - According To The Tax Man!

It's a Buyer's Market

It's A Good Time To Start Selling Property in Spain

Licence of First Occupation and Completion

Mallorca Property - The Cost Of Buying Explained

More on Consumer Rights When Buying a Property

Most Commonly Asked Questions on Completions and Snagging Inspections

Must Have Common Spanish Phrases To Spice Up Your Spanish

New Regulations Protecting Spanish Property Buyers

No Money? No Problem!

Off Plan Consumer Rights - Sample Purchase Contract

Paramount Theme Park In Murcia - What You Need To Know

Prices Soften As Mortgage Approvals Fall In Lanzarote

Private Purchase Contract - Resale Property

Problems Found by Residential Surveyors in Spain

Property Management - Who Needs It?

Publicity - Part Of The Contract

Real Problems Buying Property in Spain

Result Of Building Standards Survey

Snagging Horror Stories

Snagging Trends & Analysis

So, you want to sell your off plan?

Spain Top Choice for Second Home Abroad

Spain, a Gone Conclusion

Spanish Property Market Stalls On Exchange Rate Strength

Spanish Property Valuations - Confused?

Stimulating The Spanish Property Market – Please Take Note Mr. Zapatero

Taking Better Pictures of Your Property

Taking The Developer To Court - Jan's Story

The art of a successful Snag

The Beginner's Guide to Snagging

The Death Of The Spanish Estate Agent

The Do's And Don'ts Of Buying A Mobile Home In Spain

The Euro - Looking Back and Looking Forward

The Licensing Process For Off Plan Properties In Spain

The Mystery of Spanish Property Online

The Other Side of the Coin

The Right Groups’ – The Costs of Buying in Spain

The Rights Group’s Guide to Buying a Property in Spain

The Spanish Property Crash – Was This What Was Really Happening?

Time to Complete

Time to Complete? - Part 2

Top 10 Reasons To Buy In Spain

Top 3 Budget Restaurants In Central Madrid

Try Before You Buy

Try Before You Buy - A Change In The Property Market

What to do Before and After You Complete on Your New Property

What You Need To Do If Your Spanish Developer Goes Bust?

What's In Store For Spanish Property In 2011?

Where Are All The Property Bargains In Spain?

Who Is REALLY Looking After Your Interest In Spain?

Why Buy On A Golf Resort?

Why Buy Property On A Resort

Why Choose Interest Only For Your Spanish Mortgage

Why You Need a Website To Market Your Rental Property

Click here for a list of all the articles from our magazine 

Spain insurance services

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x