Euro sterling forecast, what might happen to the euro this year and into next. What is the Euro Sterling forecast for 2010. Some countries with the Euro such as Greece and Ireland have huge levels of debt.All the major currencies have been hit by the economic crisis and the next step is to see if central banks will begin to hike interest rates up. The RBA, the Reserve Bank of Australia increased interest rates towards the end of 2009. Yuji Saito who is the head of the foreign exchange group in Tokyo at France's 3rd largest bank said, “European officials are expressing worry that the euro’s appreciation is making things difficult for their economy. This is causing the Euro to undergo a downward correction.” The Sterling forecast for 2010 still looks gloomy with a huge UK debt and the likely end of Quantitative Easing which the UK governement has pursued, plus the uncertainty of the coalition being able to make strong economic decisions. This means that Sterling will be under pressure for some time so the indication is that the Euro will still remain strong against Sterling. However not everyone agrees. Barclays Capital are forecasting Sterling vs the euro as fighting back in 2010. They have predicted that Sterling could increase vs the Euro to 1.25 by the end of October 2010. This could happen as the UK economy is not the only economy to be suffering from the financial meltdown. The Bank of England may increase interest rates should inflation start to spiral up. If interest rates go up so do the interest rates on saving deposits and once again Sterling then becomes more attractive to invest in. This could see the Euro declining against Sterling in 2010. As of April 2010, the euro has been hit hard against the US dollar and the euro in June 2010 hit a four year low against the US dollar. There is talk from some leading economists that the euro will not survive the next five years and some countries will have to break away from it.

Tuesday 24th August, euro rises a little against sterling Sterling had a bad day today after a Bank of England official warned that the UK could go into yet another recession and that the economy was not as good as originally forecasted. As a result sterling lost some ground versus the euro, reached a one month low versus the US dollar, lost ground to the Swiss Franc and particularly the Yen.   Monday 16th August, euro claws back versus the pound Today the euro gained a little ground on the pound, after the pound had reached a six week high versus the euro last week. Some weak house prices information in the UK meant that the pound lost some of its value at the expense of the euro.   Monday 9th August, Germany helps the euro Germanys exports results were much better than forecasted this week and it's strength is likely to help the euro which has seen its value hit a 6 month low in June versus the dollar. Monday 2nd August,sterling hits 4 week high against the euro Sterling is continuing to rise versus the euro, today reaching a 4 week high against the euro. Wednesday 28th July, euro down against sterling The euro hit a 3 week low today against sterling. Sterling continues to do well against both the euro and the dollar as positive UK economic data continues.  Monday 26th July, euro edges up against the dollar The euro today edged up against the dollar but not as high as originally thought. It was Yen that was the clear winner today... Wednesday 21st July, sterling rallies against the euro Today sterling rallied versus the euro but the outlook for sterling does not look to continue in a good light following the Bank of England's comments this week about the poor state of UK growth for the future. The forecast is that sterling could have further to fall in the near future as investors take note of the Bank of England's monetary committee's comments. They also voted by a clear majority of 7 to 1 to keep interest rates low, again not making sterling look particularly attractive as an investment. Monday 19th July euro shines compared to sterling The euro rose even more against the pound today, with the pound reaching a 7 week low against the euro. The euro has also risen today against the US dollar. The euro rose despite Ireland having its sovereign currency downgraded as this was considered less of a worry than the current US economic data that is coming out. Saturday 17th July, euro up against sterling Sterling fell to its lowest point since June 1st on Friday. Good news for the euro and bad news for those looking to change their currency before heading to the Euro Zone countries. If you can plan ahead and change your currency when sterling is back in favour rather than leaving it to last minute and having no choice in how the currency is moving. 12th July, euro up against the unfortunate pound The euro and the US dollar were both up against the pound today after the UK's Triple A credit rating was questioned by a credit rating agency. They have felt that the budget cuts and poor economic data coming out means they continue to see the UK credit rating in a negative manner. As a result sterling dropped out of favour against the US dollar and the euro. Friday 9th July, euro loses some ground to the pound The pound clawed back some of its mid week losses against the euro today. As a guide today the exchange rate for the pound versus the euro  is 1 Euro = 0.835780423 British pounds. Tuesday 6th July, euro unchanged against sterling Early this morning whilst UK stocks rose, euro remained virtually unchanged against sterling. The dollar was down against the euro and the euro rose against yen. Thursday 1st July, euro recovering This morning the euro made some recovery against the heavy losses from earlier in the week. The euro had hit the lowest level ever agains the Swiss Franc after noises were made about downgrading Spain's credit rating. The forecast for the euro in 2010 is still looking weak as the euro zone battles with its fiscal crisis and weak banking, however there is a belief now that the euro zone may be able to repay its loans without borrowing further from the European Central Bank. Monday 28th June, euro down against the UK pound Euro versus the sterling saw the euro losing out today as the UK pound reached an 18 month high versus the euro. A positive budget, concern over the euro zone and talk from the Bank of England's policy maker that interest rate hikes in the UK are not ruled out, saw sterling reaching over 81 pence against the euro. Tuesday 22nd June, the UK budget 2010 helps boost sterling at the expense of the euro The euro was down against the pound/sterling today as the budget suitable tough without being too restrictive on businesses boosted sterling versus the euro.George Osborne announced today, the day of the UK budget that the unit in place to prepare the UK for the possible entry one day to the euro has now been scrapped and there are zero plans to enter the euro. Monday 21st June, the euro heads up The euro was up to its highest level against the US dollar in almost a month this morning, however investors are still concerned about the euro currency and if it can survive over the next five years. There needs to be some good news coming from the Euro Zone in June or July for the euro to remainn stable. Wednesday June 16th, Spain causes further distress for the euro The ground that the euro had made was dropped today as the euro fell as the problems in Spain with its banks and economy meant that the euro was shunned by investors. However the euro is still up 1.6% this week. One of the problems forecasted for the euro is the lack of lending in the future to Spanish banks. Tuesday June 15th, euro falls against the dollar Foreign homes are looking more attractive to UK investors as the pound stays strong against the euro. However the future of the euro looks shaky as Germany is increasingly unhappy that it has to pay for the debts of other countries and it may pull out of the euro. Monday June 14th, Euro rises in Tokyo trading In Tokyo the euro was up above $1.22 and no longer at its four year low but the forecast from many traders is that the euro will fall further. This year the euro has lost 15% against the US dollar but the gains this week equated to a rise of 1.6%. June 11th, euro up against the pound After a bad morning for the euro when sterling jumped to a 19 month high against the pound by the close of the day sterling had suffered heavy losses against the euro and the US dollar. June 9th, Morning trade in Tokyo In Tokyo the euro remained low, still a four year low against the US dollar but it did not slide as much as was anticipated. John Horner, FX strategist at Deutsche Bank in Sydney said, "Despite the substantial (euro zone) policy package and the details we have got on that, European bond markets continue to show signs of stress and that suggests the euro can fall further from here." There are now concerns that the euro crisis could spill over to Asia. June 7th, will the euro break up? The Daily Mail has published an article today saying that leading economists have warned that the euro may break up within the next five years. The cash problems of countries such as Greece, Spain and Portugal have brought the euro to a four year low against the US dollar. It fell today below $1.19 for the first time since March 2006. Spanish banks are holding onto assets which are now worth only a fraction of what they are valued at, so in reality the Spanish crisis is even worse. The Spanish banks are being very slow to release their repossessions as they were valued so highly, often with high mortgages and to sell would mean the Spanish banks would take a loss. As a result they are holding onto the properties, marking them down as an asset when in reality they are holding onto millions and millions of euros of loss. This has yet to properly come to light but will in the near future. June 4th, euro sinks agains the dollar The euro was at its lowest level for four years agains the dollar on Friday. Not a good day for the euro. June 1st, Sterling climbs up and the euro falls Sterling hit an 18 month high against the euro today. May 31st, Euro  makes some gains On Friday, Fitch had downgraded Spains sovereign rating from Triple A, to double A plus and this had a negative effect on the euro. However on Monday the US dollar was lower and the euro and the sterling were both up. Trading was thin on the ground due to the public holiday in both the UK and New York. May 27th, Euro falls against the pound Sterling reached an 11 month high against the euro today. The euro has fallen to 84.22 pence. May 25th, global stock markets slump over euro concerns Today global stock markets slumped over concerns over the eurozone debt problems. Over the week-end the Spanish government had to step in to save CajaSur and this has sent alarm bells ringing. As a result of the Spanish Government stepping into save the bank, four banks have decided to merge. Today the euro fell against both the pound and the dollar. May 18th, euro slumps against the dollar The euro slumped against the dollar today, managing a four year low. There are fears that the debt crisis of Greece could result in some of the euro countries pulling out and falling out with each other. The potential European Union breaking up means that investors have been selling the euro. May 12th, euro hits daily high against the US dollar It has been a good day for the euro against the dollar. Boosted by the package to help Greece and other countries in the euro zone, the euro reached a daily high against the dollar. May 10th, euro up against the US dollar. With a major financial package being put together by countries in the Euro zone to stop the fall out with Greece spreading the euro rose today against the US dollar. The deal agreed has given 500 billion euros which amounts to around $670 billion worth of loans and loan guarantees to any country in the euro zone that needs financial help in the future. This means that there are now likely to be no problems for a period of at least a few years which means the immediate concern of a spill over problem to other countries that use the euro, is over. Euro falls with Greeks in protests against austerity measures - May 6th. The euro has fallen further following large protests by the Greek people who do not support the Government meaasures to reduce their debts. Workers are having their salaries cut in an attempt to reduce their crisis and ensure that they are able to repay their loans. Sterling hits an almost 9 month high against the euro On Wednesday 5th May, sterling increased to a near 9 month high against the euro as there are now fears that the troubles of Greece will spread to other countries that use the euro. As a result both the US dollar the sterling were seen as a safer haven for funds. Euro gains against weaker sterling On Friday April 20th euro made gains after a multi billion euro aid package looks set for troubled Greece. A hung parliament with a Conservative majority looks likely meaning lower interest rates for sterling. Not good news for sterling and if the euro continues to gain ground against the UK pound it will be excellent news for holiday makers heading to countries such as Spain, Greece and Portugal this summer. Euro battered again by sterling On Monday once again sterling climbed against the euro which continues to be hurt by the Greek crisis. Sterling has soared taking advantage of the euros weakness and also lifted on news in a recent poll that showed the Conservative party would win the forthcoming General Election in the UK. Sterling reaches 12 week high against the euro On Thursday sterling reached a 12 week high against the euro. The euro continues to struggle whilst Greece remains in such dire financial difficulties. Euro under pressure On Tuesday the euro has been under pressure, still being rocked by the concern over Greece and its ability to pay off its large debts. As a guide, 1 Euro = 0.877048114 British pounds Germany may quit the euro, April 17th 2010 A leading City economist has warned that Germany may quit the euro to set up a smaller monetary union because of the difficulties with Greece and the bail out plans. Greece needs to refinance about £46.4billion of debt in 2010, with a huge part of that debt being due before May 19th. 1 Euro = 0.876933073 British pounds Sterling hits a high against the euro, April 9th 2010 1 Euro = 0.87191348 British pounds Sterling has reached a 7 week high against the euro which is great news for UK holiday makers heading to Spain this summer. The UK pound has been helped by good data out this week and the euro still being hit by the concern over Greece and its massive debts and possibility of defaulting on its debts. UK data showed this week that the industrial output has risen 0.5% in February and in the first quarter of 2010 the economy in the UK grew 0.4%. This is all good news for the sterling. Euro falls again against the US dollar, April 7th 2010 The euro continuted to fall against the US dollar this morning as there are fears that Greece will default on its debt payments despite the offer of help by some Euro countries.

Friday June 11th, the euro is still slipping   The euro has hit a 19 month low against sterling as investors are still not convinced that the eurozone countries can tackle the austerity measures in a meaningful way. Meanwhile the UK has has a boost with better industrial output data and by the new coalition governments unity in dealing with the budget deficit of the UK.     Euro falls April 6th 2010 The euro fell on Tuesday after reports that Greece is to start in the USA a bond and wants to alter the recent EU deal that offered aid. This has highlighted Athens debt issues and traders began to rapidly sell the European currency. On the other hand the Australian doller has rallied and reached a 2.5 month high following the Reserve Bank of Australia raising their interest rates. The rise also lifted the Canadian dollar which was then close to parity with the US dollar. Euro suffers 30th March After a good start to the week today the euro fell as investors took some profit from its earlier highs. There remain fiscal concerns concerning the euro. Euro hits 3 week low agains the dollar on Monday The euro dropped to a 3 week low against the US dollar today. There continues to be conflict within the EU zone on how they will help troubled Greece. Germany is suggesting that Greece sorts its own problems out whilst Italy stongly supports action to assist Greece. Euro hits one week low on Friday The euro hit a one week low on Friday as Greece causes more concern on how it will repay its debts. A report recently said that Athens saw little chance of enough help in the euro zone to make any real impact on their debts. There is a sumit next week but the current sentiment is that any help offered will not be dramatic enough to be of real help. Euro falls early Monday morning The euro began to slide early on Monday morning as analysts believe that the aid that has been promised to Greece is not going to be enough to solve the sovereign debt concerns in euro countries. The euro was trading down 0.2 percent on Monday morning at $1.3740, sliding back from a three week high of $1.3796 that was reached on Friday. Investors look to gold Spot gold prices increased on Friday as investors still looked away from the euro to invest their money in precious metals. The euro was trading above $1.37 against the dollar. Spot silver and spot platinum were also up on Friday. Investors shun the euro and sterling Investors shunned both the euro and sterling on Wednesday, especially in Asias trading as investors continue to wait for Greece to announce exactly what measures it will take to resolve its debts. The euro dropped to 1.3614 dollars in Tokyo on Wednesday from 1.3631 in New York late on Monday. The US dollar dropped to 89.99 yen from an earlier 90.27. Euro climbs against the dollar On Friday the dollar lost ground to the euro but climbed against the yen, as the Greek parliament agreed to strong measures to cut public spending. It remains to be seen how government workers will re-act to these measures. Euro falls to $1.3516 As we make our way into the second day of March euro falls to $1.3516 as huge concerns over the debt run up by Greece remains and investors wait to see the results of the European rate setting meeting that goes on this week. It is expected that the rate will be set at 1%. The British pound is buying at $1.4858 Tuesday, down from $1.5007 late on Monday. Euro versus sterling sees the euro winning, February 26th 2010 The pound has dropped sharply against the euro, one pound is now worth 1.12 euros. The UK government in January borrowed over 4 billion pounds and inflation has nudged towards 3.5%. Euro confidence returning, February 19th 2010 Euro zone ministers have said they will help and support Greece with its financial troubles and confidence is beginning to return to the Euro currency. Euro forecast still bumpy against other currencies, February 16th 2010 The Euro has bounced back a little against the US dollar as investors feel that it is now undervalued. However it remains at the mercy of further news on Greece and its economy. Euro loses ground against the US dollar, February 15th 2010 Concern over Greece continues with the markets wanting more detailed information on how exactly the Euro countries will assist Greece. Meanwhile the US dollar has gained ground against the Euro as investors look to the US dollar as a safe haven for cash over precious metals such as gold. The forecast for gold could be that it now loses some of its value. Euro Zone could hit a double dip recession February 12th 2010 European growth slowed down considerably during the last quarter of last year and there is a fear that it could hit a double dip recession and see further falls against the US dollar. Of the 16 countries using the Euro, there was only 0.1% growth. Germany did not even reach that. The Euro has dropped further whilst uncertainty remains on how exactly other countries will help Greece repay its massive debts. Whilst there has been an agreement to help it appears there are no blank cheques being given to Greece and they are being expected to show that they are making massive moves to reducing their debts themselves. The Euro has dropped for the 4th consecutive day against the US dollar February 8th 2010 The Euro has dropped for the 4th condecutive day against the US dollar as markets remain concerned about the huge levels of debt from some European countries such as Greece. The dollar gained against 14 out of 16 major currencies as investors look for safer currencies to put their money into. Concern about Greece has now spread to growing concern for the economies of both Spain and Portugal. European ministers have said they will try to help Greece tackle its debt. In the meantime pressure for selling the Euro remains strong.