Angela Merkel categorically stated that their would be no debt liability falling on German shoulders ‘in her lifetime’ ahead of a critical summit tomorrow. This sparked fear by many that the crisis really does not have any route or solution to solve the sovereign debt woes.
The Euro dropped against many currencies yesterday with these comments being broadcasted worldwide coupled with a Spanish debt auction that asked them to stump up even more to borrow. Prime Minister Rajoy of Spain has asked for a closer fiscal union to be formed as auctions become ‘unsustainable’ for the Spaniards to borrow to pay their debt. This weighed heavily against the Euro today but some joy did come from Spanish Retail sales as they were unexpectedly better than predicted.
The Pound started well particularly against the Euro after news from BofE Governor Mervyn King announced yesterday that a fuel price increase will be pushed back from September to January, however mortgage price approvals unexpectedly fell this morning. Yesterday the Pound actually climbed to a 44 month high against the Euro but was held close to resistance levels and has since slipped away.
If you have a currency requirement of any pair please email me and I will endeavour to explain what may have an influence on your purchase.