Why today is a key date for the Euro. When should I buy or sell Euros?
Here at www.eurorateforecast.com and across our other blogs www.poundsterlingforecast.com and www.gbpeuroforecast.co.uk we have been warning of a dip in GBPEUR levels as a result of last weeks statement by Mario Draghi. And once again our currency experts have provided all the necessary information to ensure our clients get the most from the market.
GBPEUR has since July 22nd, two and a half weeks ago, been falling slowly. Currently we are 2 cents down from those levels. A €250,000 purchase would now be over £3000 more expensive to buy. The fall on GBPEUR was compounded by the release of UK GDP data showing the UK is in a much worse recession than thought. For many months we have warned that the excellent run on GBPEUR would falter as soon as the spotlight returned to the UK, and we have been proved right again. Yesterday UK Manufacturing posted its biggest one month drop in three years!
Today we will see yet more movement and it is likely to be negative, good news for Euro sellers, bad news for Euro buyers. Mario Draghi’s comments last week extended the losses on the rate and whilst the market is expecting and has already priced in some kind of action by the ECB, there is a high degree of uncertainty as to what we will actually see. For my full explanation of everything we could expect please read my post earlier this week here.
There is a high chance of some Euro positive announcements this afternoon at 13.30 (14.30 CET) which could provide a good opportunity for anyone selling Euros. But beware should Draghi and the ECB not live up to the very high expectations, the relief rally after could cause some unexpected volatility, particualrly on EURUSD as we see funds move in and out of the dollar on safe haven concerns.
For a free, no obligation discussion of what will move you rate and how to make the most of the current situation you can call me Jonny on 01494 787 478 or email me on jmw@currencies.co.uk
