Log onto the economics sections of the BBC or Google News, and you’re bound to be confronted by a variation on the following headlines:
CRISIS LOOMS IN EUROPE
Rumours circulate that Chancellor Merkel stocking up on canned goods
IS THE EURO DOOMED?
President Sarkozy said to be hiding gold reserves under his bedroom mattress
It’s been rolling on for months, ever since the financial downturn began in 2008, and there’s no sign that it’s letting up:
The Eurozone crisis.
Of course on the one hand, this is terrible news: deteriorating fortunes in Europe hurt business confidence worldwide, including in the UK.
British businesses depending on Europe for 50% of their trade for instance, meaning a recession in Europe is unlikely to leave us untouched.
On the other hand though there is an undeniable upside to declining fortunes in Europe, and this relates to the euro and foreign exchange.
Making The Most Of Problems In Europe For Your Foreign Exchange
Imagine a young family are purchasing their first home.
For years they have scraped and saved, cutting back on luxuries until at last they have the money they need.
They walk into the estate agent one morning and, lo and behold, the man behind the desk has a big bright smile on his face. He opens his arms in welcome to the family:
“Mr and Mrs Jones!” he tells them.
“You couldn't have picked a better time to come see me.
“Just because you picked this day to get in touch, I’m able to offer that house you wanted several thousand pounds cheaper than you had budgeted for!”
The mother and father gape at him.
“But why?” they ask.
“Because unemployment in Spain is up!” the estate agent tells them.
This Might Seem Fantastical, But In Foreign Exchange It Can Happen
The problems in Europe, including unemployment in Spain of almost 50.0% among people aged 18-30, has sent the euro tumbling against the pound.
Right now it’s at heights not seen in at least 12 months.
So, you might not be purchasing your first home like our family above, but events in Europe are nonetheless having a huge positive impact on your potential cost.
It' only a matter of finding out what's happening, and getting in touch at the right time to take advantage.
To find out more about taking advantage of euro weakness regarding your foreign exchange transactions, contact specialist foreign exchange brokers Pure FX on +44 (0) 1494 671800 or email [email protected]. You can also visit us at foreign exchange specialists Pure FX.