Sporting chance for Sterling as Eurozone continues to look uncertain

Spain’s football team has been crowned one of the most successful national sides of all time, following consecutive Euro Championship victories. Meanwhile, off the pitch, its banks – along with those of neighbouring southern European states – are struggling through a perilous and relentless losing streak, putting pressure on the euro.

The recent EU Summit should bring some short-term relief to Europe's struggling banks. European leaders have finally agreed on the creation of a joint bank supervision scheme – to be effective by the end of the year - and the ability of bailout funds to bypass national governments and go direct to struggling European banks. These developments are no silver bullet to the underlying Eurozone debt crisis, but rather a first step in creating an environment that could support efforts of the worst hit countries to begin the fragile process of reigniting economic growth. 

The next EU Summit is in October, when the next step in implementation of measures to aid euro nations will be confirmed - as we all know, the Eurozone needs surgery, not a constant stream of Band-Aids. Until then, it is expected that Sterling will retain its three-year high against the euro. We’re hosting the Olympics this month too – the feel good factor from this, combined with the short-term boost to local UK businesses could be a shot in the arm for Sterling. Something worth bearing in mind when timing any upcoming international payments.

Businesses with profit margins affected by market fluctuations can eliminate the risk of buying currency by calling Smart Currency Business on 020 7898 0500 for more information or visit www.smartcurrencybusiness.com to find out how much you can save.