Euro Declines on Election Results

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This morning the Euro is falling against the pound as the markets open following the weekends elections in France and Greece.The parties that supported the european bailouts in Greece have lost out and this is putting question marks over Greeces future in the single currency. The rate has hit, as I am writing this, £1 to €1.295 on the markets although the retail prices are slightly less.

François Hollande the new French President

François Hollande the new French President

The French results have caused a slight devaluation of the Euro dues to rumours of German displeasure at Mr Hollande’s economic position and German calls for re-examining the French/German relationship. This is not a time when the finincial markets want to see more uncertaincy or weaknesses in the centre of the European financial compact.

What this means for travel money is that the Euros weakness means better exchange rates for UK travellers but it is the same uncertaincy that the markets don’t like and is causing the weakness in the value of the Euro. This also means that no one can tell you when is the best time to buy. If you are happy with the rate you are getting and the rate does not seem ‘too good to be true’ then now is probably a good time, if you can afford to wait a while then you can let things settle down for a while and see where the Euro levels out at.

We would love to hear from ex-pats living in France and Greece and living through these changes and get your comments on how this is effecting you.

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Posted by Peter Rudin-Burgess

Peter Rudin-Burgess

Peter is one of the founding partners for both Compare Holiday Money and Currency Buy Back. He regularly blogs on financial matters and writes content for a number of blogs in the travel industry.

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