The euro has stumbled this week, following remarks from Steffen Seibert (spokesman to the German Chancellor) that a once-and-for-all solution to the debt crisis is NOT planned.

Peter Lavelle at foreign exchange broker Pure FX.
18.10.2011

Is the Eurozone ever going to dig itself out of its debt crisis hole? The odds look slim this morning following remarks from Steffen Seibert (spokesman to the German Chancellor). He has remarked that finance ministers are NOT set to reveal a crisis solution this weekend – in spite of previous promises.

Speaking to journalists Seibert revealed that – notwithstanding Franco-German promises in Berlin last weekend – the market should not get excited regarding a debt crisis solution at the planned G20 meeting on October 23rd.

Given the previous pledges this came as something of a slap in the face to the market. It caused the bottom to fall out of the euro like a plastic bag full of cans. The euro has since lost ground against currencies including sterling – of course providing good news for people that plan to send money abroad.

On the other hand it is surprising in a sense the markets reacted at all to this reverse gear from the Germans. Following 18 months in which Merkel and co. have fumbled regarding a solution, blowing hot and cold should be expected.

Hence expect euro weakness for the foreseeable future.

Get in touch

To find out more about the latest events on the foreign exchange market then, feel free to get in touch at +44 (0) 1494 671800 or email enquiries@purefx.co.uk quoting GlobeDweller.com. We’d be delighted to help you send money abroad.

About Pure FX

• Operating in the UK since 2006.
• Directly authorised by the Financial Services Authority in the UK no. 504354 for secure transfers.
• Exchange rates guaranteed to beat your high street bank.
• Personal service from a dedicated currency exchange dealer.
• No fees and no commission.
• Same day payments available.
• Exchange rate alert when your target rate becomes available.

Testimonials

“Thanks for the notification, the funds have landed in my account today. Without hesitation I would be happy to recommend Pure FX to friends or colleagues with similar needs. I have found the service to be helpful, efficient and effective. Many thanks for your help.” - Patrick McMahon, Essex