November Currency Market Review


The focus in the financial markets last month remained on Europe and the debt issues facing a number of the countries within the single currency economy. Towards the end of the month there were further developments as the European leaders agreed a new financial rescue package aimed at providing more financial support to the European countries under economic pressure. The new package focussed on three main areas which included:

• Private banks holding Greek debt accepting a 50% loss
• The Euopean Financial Stability Fund (EFSF) [a fund used to provide financial backing to struggling European countries] to be boosted to €1trillion
• Banks told to recapitalize by €106bn

This package was debated over a number of days and despite being agreed is still not seen as the final answer to the European’s problem. What is known though is that with so much uncertainty in the market the movement we are seeing in the currency market is significant. In fact, last month we saw a difference between the high and the low of the month of €8,200 on a £200,000 currency transfer!

Will China come to the rescue?
Following on from the new rescue package the head of the European Financial Stability Facility (Klaus Regling) met Chinese ministers to discuss the possibilities of borrowing money to rescue them from the current debt crisis. China’s Vice-Finance Minister Zhu Guangyao said China is open to all options and is willing to discuss.’ When first created the EFSF was set up with €440bn and has recently been increased to €1 trillion as mentioned above but according to the IMF the EFSF might need twice that amount to avoid further problems. With China ready for talks but not fully committed we could see further Euro instability.

New Leader of the European Central Bank
November sees the end of Jean Claude-Trichet’s 8 year reign as president of the European Central Bank (ECB). In his place comes the Italian Mario Draghi who is taking control at a time when Italy is in the headlines with a spiralling debt level and in a recent poll released on Sunday the Dutch public remain overwhelmingly pessimistic about the prospects of the Euro and fear that Italy or Spain will be the next in need of a bailout.

It appears that Mr Drahi will have his work cut out for him!

Euro Outlook
The outlook for this month on Euro exchange rates remains unclear and it is likely that developments in Europe will have a big impact on exchange rates. So, if you need to transfer funds internationally make sure you speak to a specialist currency broker who will be able to keep you informed of all the market movement and ensure you get the best rates available in the markets.

What next?

Call +44 (0)1494 725353 (Open 8:30am – 6pm (UK Time)

> Open a Currency account today

> Request a call back

> Ask questions about Currency Exchange

Foreign Currency Direct plc (FCD) are Sextant Properties preferred currency partner and have been selected due to their award winning exchange rates having topped the exchange rate tables in The Sunday Times for three consecutive years. FCD also offer a number of different contract options for Sextant clients including a forward contract where you can fix a rate of exchange for a period in the future using just a small deposit, perfect to help take the risk out of the currency markets and budget for your property purchase.

If you would like to discuss your currency requirements and all the options open to you including the forward contracts please contact our preferred currency partners Foreign Currency Direct plc on 01494 725353 or visit their website:

What next?

Call Foreign Currency Direct on +44 (0)1494 725353 or 0800 328 5884 from 8:30am – 6pm (UK Time) Monday to Thursday and 8:30am – 5pm (UK Time) on Friday’s.

> Open a Currency account today

> Request a call back

> Ask questions about Currency Exchange

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This entry was posted on Monday, October 31st, 2011 at 12:57 pm and is filed under Currency Exchange . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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