This has been confirmed by one of the world’s largest independent financial advisory organisations. The observations from James Stanton, Head of Foreign Exchange at deVere Group, come as the single currency dropped to its lowest level against the pound in two and a half months, as Greece told international creditors it could default on its repayments.
Mr Stanton explains: “The euro has further weakened against the pound due to concerns over Greece’s possible default and the outpouring of capital in the Eurozone, amongst other factors.
“It’s been a monumentally busy day for currency trades. Those going on holiday in the Eurozone, expats and/or those planning to imminently retire to Spain, France, Germany Italy or any other Eurozone destination, plus sterling currency traders, have been piling into the Euro on Monday to cash in on the single currency’s latest slide. This is a savvy, sensible strategy for those who want to take advantage of the crashing Euro.”
He adds: “Hitting €1.41 against the pound, the Euro is currently looking like a good long-term buy. In addition to the problems in Greece, sterling traders are also taking into account last week’s surprisingly good UK retail figures, and the GDP figures that will be released on Thursday are likely to be better than previously expected.
“It looks like we could reach highs of €1.42 against the pound in the near term, and that the pound will cement its position around the €1.41 mark, as there seems to be a lot of support for sterling at that level. The trend is also very similar to that of the March high.”