What is the outlook for the euro in 2011?

0
shutterstock_52935028_web


With the sterling/euro trading within a €1.09 and €1.23 range during 2010, you are likely to have concerns about where the rates are going, especially if you are transferring regular funds to and from Spain. Currency expert Moneycorp, gives us an update as to what the outlook for the euro is looking like for 2011.

As incoming Brazilian president Dilma Rousseff delivered her inauguration speech at the beginning of the year an interpreter on the BBC matched her Portuguese, word-for-word, in English. It was an impressive performance both for the new president and for her simultaneous translator. If only financial market forecasters were so skilled at interpreting the movements of world currencies on a second-to-second (or even a year-to year) basis.

-- Advertisement --

Estonia joined the single European currency on 1 January. Cynical bystanders wondered why it was so determined to board what might be a sinking ship. It had to, after such a long pilgrimage. For such a small country (population 1.4 million) to back out at this stage would have been pointless after pegging its currency for 18 years first to the Deutsche Mark and then to the euro.

It remains to be seen whether that will turn out to have been a good decision. Estonia is the only Euroland nation to comply today with the euro criteria for national budget deficit, inflation and so on. The near-bankruptcy of Greece and Ireland last year could mean trouble in store for Portugal, Spain, Belgium and other Euroland nations. The euro will probably survive the year intact but continued pressure along those lines might mean it cannot survive the decade.

The euro is in a do-or-die position; perhaps an exaggeration but Brussels can either sort out the problems of Portugal, Spain, Belgium and Italy or it cannot. It is a big ask, much of which boils down to markets’ confidence in the ability of those countries to repay their debts.

Sterling depends on two things (a ludicrous understatement for the sake of simplicity): employment and inflation. If the chancellor’s promise pays off, private sector recruitment will replace public sector lay-offs. If the Bank of England pays attention to its 2% inflation target the pound will earn the confidence of investors. But if they see a jobless recovery like the one that is going on in the United Sates, and if they see inflation inching ever upward as interest rates remain near zero, they will vote with their cheque books.

With the sterling/euro rate currently trading at levels near €1.20, it is worth discussing any of your future currency transfer requirements with a foreign exchange specialist as soon as possible. A forward contract is just one of the services a currency broker can provide. You can book to buy or sell your currency in the future, at a rate you fix today. Forward contracts can help protect against adverse currency movements and can be used to lock into favourable exchange rates.

A foreign exchange specialist like Moneycorp will give you free expert guidance in the currency markets, to ensure that you make your trade at the right time, when the market is in your favour.

Information provided by Moneycorp, www.moneycorp.com/spain , +34 951 319 700

 

Like
Like Love Haha Wow Sad Angry

Spain Prepares For Fourth General Election November 10

Caption.Credit Filckr A fourth general election seems to be heading its way in Spain.   Prime Minister Socialist Pedro Sánchez appears to have failed in a bid...

Wales coach sent home from Rugby World Cup over betting allegations

Caption.Credit Wikipedia The 48-year-old former Wales rugby captain has been part of Warren Gatland's coaching team since 2008. Howley was sent home from the Welsh team...

Factual Weather Report

Caption.Credit Pixabay   Whilst the weather has been a large topic in the news with the terrible storms of late, it's noted that some publications are...

Sports centre wrecked by Tornado in Denia

  A TORNADO that ripped through Denia left devastation in its wake. Denia´s sports complex was badly damaged and may have to be completely rebuilt. Part of...

Cricket Hero Ben Stokes Smashes The Sun For Six

Caption.Credit Flickr   Ben Stokes one of England's  greatest all round cricketers of all time has gone to twitter to slam articles written about his family...

Hidden Cannabis in Las Herrerias in Cuevas del Almanzora

GUARDIA Civil located 500 marijuana plants hidden among the ruins of an old mining exploitation in Las Herrerias in Cuevas del Almanzora. Based on information...

Spain Prepares For Fourth General Election November 10

Caption.Credit Filckr A fourth general election seems to be heading its way in Spain.   Prime Minister Socialist Pedro Sánchez appears to have failed in a bid...

Factual Weather Report

Caption.Credit Pixabay   Whilst the weather has been a large topic in the news with the terrible storms of late, it's noted that some publications are...

Cricket Hero Ben Stokes Smashes The Sun For Six

Caption.Credit Flickr   Ben Stokes one of England's  greatest all round cricketers of all time has gone to twitter to slam articles written about his family...

Stranded In Spanish Seas With No Knickers!

Caption.Credit Natalie Quinn Imagine the scenario you book that dream luxury cruise that you have saved up for, it comes around to sailing and you find...

New and older cast members from TOWIE return to the Costa...

NOW that The Only Way is Essex (TOWIE) is in its 24th series, there is no doubt that it has become a real part...

Killed in Malaga car crash

A WOMAN has died and three men injured in a traffic accident on Las Pedrizas toll motorway (AP-46) in Malaga.  The incident occurred at 5.46 am today...

Spain Prepares For Fourth General Election November 10

Caption.Credit Filckr A fourth general election seems to be heading its way in Spain.   Prime Minister Socialist Pedro Sánchez appears to have failed in a bid...

Factual Weather Report

Caption.Credit Pixabay   Whilst the weather has been a large topic in the news with the terrible storms of late, it's noted that some publications are...

Sports centre wrecked by Tornado in Denia

  A TORNADO that ripped through Denia left devastation in its wake. Denia´s sports complex was badly damaged and may have to be completely rebuilt. Part of...

Cricket Hero Ben Stokes Smashes The Sun For Six

Caption.Credit Flickr   Ben Stokes one of England's  greatest all round cricketers of all time has gone to twitter to slam articles written about his family...

Stranded In Spanish Seas With No Knickers!

Caption.Credit Natalie Quinn Imagine the scenario you book that dream luxury cruise that you have saved up for, it comes around to sailing and you find...

Unmanned raft found in Javea

THE crew of the Sol de Javea, a fishing boat from Javea, found a raft drifting 15 miles from the Cabo de San Antonio...

Spain Prepares For Fourth General Election November 10

Caption.Credit Filckr A fourth general election seems to be heading its way in Spain.   Prime Minister Socialist Pedro Sánchez appears to have failed in a bid...

Factual Weather Report

Caption.Credit Pixabay   Whilst the weather has been a large topic in the news with the terrible storms of late, it's noted that some publications are...

Cricket Hero Ben Stokes Smashes The Sun For Six

Caption.Credit Flickr   Ben Stokes one of England's  greatest all round cricketers of all time has gone to twitter to slam articles written about his family...

Stranded In Spanish Seas With No Knickers!

Caption.Credit Natalie Quinn Imagine the scenario you book that dream luxury cruise that you have saved up for, it comes around to sailing and you find...

A pearl to cherish in Costa Blanca

WHILST many small towns in Costa Blanca have been devastated by the floods, Benijofar has fared a little better and has been involved in...

Weather update: Search for Dutch man missing in Costa Blanca floods

THE search is on for a 66-year-old Dutch man who was reportedly sucked under by flood waters in Dolores on Spain’s Costa Blanca.  Guardia Civil...

Spain Prepares For Fourth General Election November 10

Caption.Credit Filckr A fourth general election seems to be heading its way in Spain.   Prime Minister Socialist Pedro Sánchez appears to have failed in a bid...

Cricket Hero Ben Stokes Smashes The Sun For Six

Caption.Credit Flickr   Ben Stokes one of England's  greatest all round cricketers of all time has gone to twitter to slam articles written about his family...

Stranded In Spanish Seas With No Knickers!

Caption.Credit Natalie Quinn Imagine the scenario you book that dream luxury cruise that you have saved up for, it comes around to sailing and you find...

Cancer charity ride kicks off in Malaga

THE Balcon de Europa provided the backdrop to the presentation of a charity bicycle ride that will see Bernardo Cortés and Francisco Bueno cycle...

Torrox Tourism day was a huge succes

A RECORD crowd gathered to celebrate El Día del Turista de Torrox on Saturday, further cementing the town as a haven for culture and fashion in Andalucia. According...

Motril collaboration to improve tech opportunities in Axarquia

TECHNOLOGY businesses are being invited to Axarquia to benefit from highly-skilled graduates in the area. A meeting took place on Monday 9 September between the...

Spain Prepares For Fourth General Election November 10

Caption.Credit Filckr A fourth general election seems to be heading its way in Spain.   Prime Minister Socialist Pedro Sánchez appears to have failed in a bid...

Factual Weather Report

Caption.Credit Pixabay   Whilst the weather has been a large topic in the news with the terrible storms of late, it's noted that some publications are...

Cricket Hero Ben Stokes Smashes The Sun For Six

Caption.Credit Flickr   Ben Stokes one of England's  greatest all round cricketers of all time has gone to twitter to slam articles written about his family...

Hidden Cannabis in Las Herrerias in Cuevas del Almanzora

GUARDIA Civil located 500 marijuana plants hidden among the ruins of an old mining exploitation in Las Herrerias in Cuevas del Almanzora. Based on information...

Stranded In Spanish Seas With No Knickers!

Caption.Credit Natalie Quinn Imagine the scenario you book that dream luxury cruise that you have saved up for, it comes around to sailing and you find...

Town Hall help for flood victims in Huercal-Overa

HUERCAL-OVERA council has set up an office to assist residents hit by the extreme weather so they can register rain and flood damage. The local...

Spain Prepares For Fourth General Election November 10

Caption.Credit Filckr A fourth general election seems to be heading its way in Spain.   Prime Minister Socialist Pedro Sánchez appears to have failed in a bid...

Stranded In Spanish Seas With No Knickers!

Caption.Credit Natalie Quinn Imagine the scenario you book that dream luxury cruise that you have saved up for, it comes around to sailing and you find...

WEATHER UPDATE: Travel chaos as airports close down in eastern Spain...

AT LEAST THREE people have died after torrential rain, terrifying lightning storms and flash floods have swept across south-eastern Spain Spain’s acting prime minister, Pedro...

No fags or booze on Calo des Moro Beach

THE beautiful beach, Calo des Moro, has recently been made a non-smoking beach by the Santanyi town hall but they have now made the...

MasterChef Junior is filming in Mallorca

THE seventh series of Masterchef Junior is currently being filmed at the Rafa Nadal Museum in Mallorca. The children’s version of the popular Spanish TV...

Twister in Mallorca

A TORNADO hit Port Adriano yesterday afternoon as a twisting element of the storms that battered the island. Facebook was abuzz with photos and videos...

Cricket Hero Ben Stokes Smashes The Sun For Six

Caption.Credit Flickr   Ben Stokes one of England's  greatest all round cricketers of all time has gone to twitter to slam articles written about his family...

Gran trampled by camels while on holiday in Spain left with...

WHAT SHOULD have been a fun day out, including a camel ride along the beach in Fuerteventura in the Canary Islands, turned into a...

Police intercept 800kg of cocaine in international waters near Gran Canaria

THE Guardia Civil of the Canary Island have revealed that specialist teams from the Maritime Patrol department of the Tax Agency have intercepted a...

Fugitive captured in Tenerife jailed

POLICE looking for one of Scotland’s most wanted men found a simple way of catching him. UK police tipped off their Spanish counterparts that the...

Group of baby sharks spotted of Tenerife

BATHERS were shocked when a group of baby sharks descended on the beach of El Médano, in the south of Tenerife. Many bathers assumed they...

British teen stabs his parents in front of shocked tourists

A British teenager has stabbed his parents in Tenerife before jumping from a considerable height, according to reports. The incident took place on Wednesday afternoon...

BREAKING: Gibraltar to beat the UK in holding a General Election...

BEATING Boris Johnson, the Chief Minister of Gibraltar, Fabian Picardo today (Monday) handed a request to the Governor to dissolve parliament immediately. A general election...

A few rocky moments but generally Gibraltar Calling went well

THIS year’s Gibraltar Calling Festival was held at the completely new venue of Europa Point Stadium last Saturday and Sunday and there were some...

UK Parliamentarians and Gibraltar National Day

A NUMBER of British Parliamentarians have arrived in Gibraltar today (Friday) to show their support for Gibraltar’s National Day and the right of the...

Red White and Proud: A special message to the Euro Weekly...

A SPECIAL message to readers of Euro Weekly News from the Chief Minister of Gibraltar, Fabian Picardo. Come and join us in Gibraltar for our...

Illicit tobacco worth more than €30,000 seized in Gibraltar

KEEPING up with their fight against tobacco smuggling which has caused so much angst in Spain, Gibraltar customs officers have seized 750 cartons containing...

Gibraltar will host international competitors at Special Olympics National Games

THE Special Olympics were founded in 1962 by the sister of President Kennedy and are held every two years in different parts of the...

LEAVE A COMMENT

Please enter your comment!
Please enter your name here