Sterling headed for a second weekly decline versus the single currency after data showed state spending increased 1.2 percent. Revisions to gross domestic product data showed the economy shrank 6.2 percent since the first quarter of 2008, making the recession the deepest on record.

With this recent downtrend on GBP/EUR this could be a great opportunity to look into a forward contract. A forward rate can protect your currency against any pitfalls within the market safeguarding your transactions against any further market downturns. You can purchase a ‘Forward’ for anything up to 2 years in advance with a 10% deposit.

With the pending problems in the Greek financial sector we may see Sterling Strength if Germany and France decide to come up with a ‘Bail Out Plan’, however on the flip side the ‘Bail Out’ could be seen as positive move from the Euro as it will show solidarity from the Euro Zone as whole.

The graph above shows GBP/EUR rates over the last 3 months. As you can see the trend was generally up however there are a lot of inconsistencies so predictions will be varied in months to come.