Currencies Direct

Currencies Direct

November 08, 2011 12:19 ET

Euro Remains Firm So Far Despite Greek Drama, Reports Currencies Direct

The Currency Exchange Experts Note Relative Stability in the Single European Currency Despite Furore Over Greece's Threatened Referendum on Bailouts

LONDON, UNITED KINGDOM--(Marketwire - Nov. 8, 2011) - After high drama in European politics last week, this week begins with what seems to be a short breath of economic calm, according to currency exchange company Currencies Direct.

The company which specialises in foreign currency exchange, particularly across the UK and Europe, noted that markets for the Euro have remained relatively stable despite a series of Eurozone mini-dramas last week.

When Greek Prime Minister George Papandreou suggested a referendum on the bailout plan dealt to Greece by the IMF and Eurozone economic leaders, the entire continent was in brief uproar.

With a G20 meeting at Cannes beginning last Thursday, Merkel and her fellow EU economic heavyweights dealt Greece an ultimatum – take the bailout plan as it is, or we won't pay you the next $8 billion tranche of your debt reduction package.

The markets twisted and turned for the middle part of last week as it remained unclear whether Papandreou, whose majority in Greek parliament was only 2 dangerous seats following a series of walk-outs from party members, would rescind.

However, an uneasy calm has followed the storm, and the Euro has only seen small losses as we enter mid November. This may not last forever.

Analysts at Currencies Direct noted that despite surviving a vote of confidence, the Euro will remain susceptible due to a lack of detail about the Greek rescue plan as well as the actual mechanics for leveraging the EFSF bailout fund.

And what does this mean for currency exchange? Despite the Euro maintaining a stability that many had not predicting during the turbulent economic twists of last week, its continuing vulnerability could mean good news for the dollar.

Currencies Direct suggests that given the central bank meetings in both the US and Europe last week, this will be a very interesting time to track the changing relationship between US and European currencies. With confidence up, and the Euro still a little shaky, investors may find the dollar begins to gain.

About

Currencies Direct www.currenciesdirect.com with more than £1bn annual turnover is one of Europe's leading non-bank providers of international payment services. Since its formation in 1996 Currencies Direct has maintained its focus on being an innovative service provider of foreign exchange transfers for consumers and high net worth individuals with an extensive client base of 200 000. The company has also expanded its services to provide dynamic and pioneering 'business to business' solutions to help companies, tier 2/3 banks and other non-bank financial institutions process their international payments.

Head quartered in the City of London (United Kingdom) with operations in Europe, Africa, Asia and the United States, Currencies Direct is part of the Azibo Group, a privately owned investment company www.azibogroup.com.

Currencies Direct can typically save clients up to three per cent of the value of the property or investment purchased abroad, compared to mainstream banks, by providing commercial rather than retail rates to its customers. Transfers are free for all transactions over £5000 and those wishing to make regular transfers abroad every month also benefit from fee-free transactions.

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